One of the most frequently asked questions from our non-Japanese clients is, “Can I get a housing loan at Japanese bank to purchase a Japanese property?”.

Mandatory condition to arrange a loan

The criteria of arranging a bank loan for non-Japanese differs to each bank, but here are some necessary conditions in all Japanese banks.

Mandatory condition 1: Need to have a Japanese address

If you lend your money to somebody, one of the biggest concerns/risks is that this person will escape without paying you, and you cannot contact this person anymore. It is same for banks, they will not arrange a loan to whom do not have a registered address in Japan.

Mandatory condition 2: Need to have a Job and income in Japan

If you lend your money to somebody, one of the biggest concerns/risks should be that this person does not work and does not have a capacity to return you the money. It is same for banks, they will not arrange a loan who do not have a stable job in Japan having certain amount of secured income.

Advantage condition to arrange a loan

The above conditions are mandatory to arrange a housing loan in Japan, and here are some advantage conditions if a lender is arranging a housing loan in Japan.

Advantage condition 1: Having PR (Permanent Residence)

If a non-Japanese is PR holder, banks think that you are considering staying in Japan for a long period, and most banks will treat you at totally same conditions with local Japanese. But some Japanese banks requires to have a certain level of Japanese communication skill to avoid a misunderstanding of the clauses when signing a loan contract with the bank.

Advantage condition 2: Spoused with a Japanese

If a wife or husband of non-Japanese is a Japanese, banks also think that you are considering to stay in Japan for a long period, and most banks will consider this point positively.

General condition to arrange a loan

If the mandatory conditions are covered (having a Japanese address and work in Japan), but without covering the advantage conditions (not PR holder and not having a Japanese wife), generally the following conditions are required from banks.

Standard condition 1: Cash payment for certain amount

In many cases, approx. 30% of the property price are required to pay by cash (payment will be 70% loan + 30% cash). Also the other costs such as tax and property registration are required to be paid by cash.

Standard condition 2: Certain length and salary amount of service in a same company in Japan

This depends on each bank, but generally 1 to 3 years period of work at a same company is required.

Example of necessary documents:

-Proof of income (certificate of income and withholding tax, salary slip for recent 3 months etc.）

-ID (Insurance card issued from company, Residence card, Driver’s license etc.)

-Personal stamp or signature

– Seal registration certificate

-Certificate of employment

-Certificate of residence

-Repayment schedule (if any, such as car loan)

Above is just a general trend if a non-Japanese applied a housing loan at Japanese banks.

If you have any questions, or want to know more details, please contact to the following e-mail address.

【REDS】Real Estate Distribution System (REDS) Japan

Hiroki Kano (Mr.)

mailto: hi.kano@red-sys.jp