Non-Japanese nationals can also obtain a mortgage loan when purchasing a home in Japan, but there are some conditions and restrictions. Below is a summary of those conditions and points to note.
Requirements for Mortgage Loans
Permanent Residence Permit
Non-Japanese nationals with permanent resident permits can apply for a mortgage loan under almost the same conditions as Japanese nationals. If you have a permanent residence permit, financial institutions usually screen applicants based on the same criteria as Japanese nationals.
Conversely, applying for a loan is almost impossible without a permanent resident permit. Even if the person wishes to stay in Japan, he/she may have to leave. It is not cost-effective to chase the person overseas for the loan recovery; such things are considered screened out from the beginning.
Although we mentioned a permanent residence permit, you can also take out a mortgage loan if you have acquired Japanese citizenship or are a permanent or special permanent resident.
Examples of Additional Requirements
When a non-Japanese national obtains a mortgage loan in Japan, additional requirements may be required in addition to having a permanent resident permit. The following is a list of typical additional requirements.
- Co-signer of a spouse with a Japanese citizen or permanent resident
- Understandable the contract in Japanese
1. Co-signer of a spouse with a Japanese citizen or permanent resident
For non-Japanese nationals who do not have permanent residency, a condition may be that a spouse with a Japanese citizen or permanent resident join the contract as a co-signer. A joint guarantor tends to make it easier for the financial institution to approve the loan since it can claim repayment on behalf of the borrower if he or she becomes unable to repay the loan. In particular, when a non-Japanese who does not have a right of permanent residence takes out a mortgage loan for the first time, having a spouse who can act as a guarantor can provide added peace of mind.
2. Understandable the contract in Japanese
A mortgage loan is a contract that continues to be repaid over a long period, and the agreement contains many essential details. Therefore, there are cases in which a bank requires Japanese language ability. Some financial institutions require Japanese language skills to understand the contents of the contract, and the ability to understand explanations of essential matters in Japanese may affect the screening process. This is to ensure that the repayment terms and risks of the loan are fully understood and to avoid any problems later on.
Some banks are willing to accept it if it can be understood through a spouse or a specialist. You need to check in advance.
Differences among financial institutions
Each financial institution has different loan conditions and screening criteria for foreigners. It is important to compare multiple financial institutions to find one that offers terms and conditions that suit you. Non-banks (financial institutions specializing in loans) are also worth considering.
In Japan, each financial institution has different requirements for non-Japanese taking out a mortgage loan. Below is a summary of the conditions and maximum loan amounts for each pattern of mortgage loan eligibility.
1. Having Permanent Permission
Non-Japanese nationals with permanent resident status can obtain mortgage loans from many banks in Japan. In this pattern, loans can often be obtained under almost the same conditions as those for Japanese nationals.
- SBI Shinsei Bank「Power Smart Mortgage Loan」: 5 million yen to 300 million yen
- AEON Bank「AEON Bank Mortgage Loan」: 2 million yen to 100 million yen
- SBI ARUHI「ARUHI Super Flat」: 1 million yen to 80 million yen
- Sony Bank「Mortgage」: 5 million yen to 200 million yen
- au Jibun Bank「Mortgage」: 5 million yen to 200 million yen
2. Without Permanent Permission but with a co-signer
Non-Japaese nationals who do not have a permanent residence permit may still be able to obtain a mortgage loan if their spouse, a Japanese citizen or permanent resident, joins them as a joint guarantor.
SBI Shinsei Bank「Power Smart Mortgage Loan」: 5 million yen to 300 million yen
3. Special Permanent Resident Status
Special permanent residents are also eligible for mortgage loans at some financial institutions under the same conditions as permanent residents.
- SBI ARUHI「ARUHI Super Flat」: 1 million yen to 80 million yen
- Resona Bank, Ltd.「Resona Refinance Loan」: 500,000 to 300 million yen
4. No Permanent Residence, but have Residency Status
一部の金融機関では、永住権を持たない外国人でも在留資格があれば融資を受けられる場合があります。この場合、在留カードの提出や日本語での意思疎通能力が求められることがあります。
Some financial institutions may allow foreigners who do not have permanent resident status to obtain loans if they have resident status. In such cases, they may require the submission of a residence card and the ability to communicate in Japanese.
- Sumitomo Mitsui Banking Corporation「Mortgage Loan for Web Application Only」: 1 million yen to 100 million yen
- Tokyo Star Bank「Star Mortgage」: 5 million yen to 100 million yen
Summary
Although it is possible for non-Japanese nationals to obtain a mortgage loan in Japan, various factors will affect the screening process, including whether or not you have permanent residency, your income status, and your Japanese language ability. In particular, if you do not have permanent residency, it is vital to gather information well in advance and find the best financial institution for you, as you will need to meet requirements such as a spouse’s guarantee and length of residency.
In addition, I also provide support for financing business loans to financial institutions. If you are interested in this service, please contact us.
