One of the most frequently asked questions is “Am I eligible for the housing loan?”.
In general, if you are running an independent business in Japan, banks are checking the figures written in the final tax return (kakutei shinkoku), especially the figures of recent 2-3 years’ earning (shotoku) which average should be higher than each bank’s criteria such as 3mil or 4mil JPY.
The point here is that the banks are checking the figures of earning (shotoku) , not the income (shunyu).
The difference is, figure before deducting expenses is income (shunyu), and the figures after deducting expenses is earning (shotoku). So even if your figure of income (shunyu) is high, houseing loan is not eligible if your figure of earning (shotoku) is lower than their criteria.
And if you applied and received the COVID-19 subsidy (jizokuka kyuufukin), this amount will be deducted from your earning (shotoku) at the bank’s judgement.
Please be noted that the final decision of housing loan will be made by banks considered several prospects, so it does not mean that you will surely get the housing loan even if your earning (shotoku) is higher than bank’s criteria.
If you want to consult for a housing loan, please contact to the following e-mail address.
【REDS】Real Estate Distribution System (REDS) Japan
Hiroki Kano (Mr.)