Can You Get a Home Loan Without Permanent Residency? Practical Points for Foreign Residents Buying a Home in Japan

“I want to buy a home in Japan, but I do not have permanent residency. Can I still get a home loan?”

I sometimes receive this kind of question from foreign residents in Japan.

The short answer is that it may be possible to get a home loan even without permanent residency.

However, there is an important point to keep in mind.

Being eligible to apply for a home loan without permanent residency and actually passing the bank’s screening are quite different things.

From what I have heard from foreign residents who have actually looked into home loans in Japan, the process can be more difficult than expected. In some cases, an application may seem to be progressing well at first, but the loan is ultimately not approved.

Some Banks Consider Home Loans Without Permanent Residency

Some banks in Japan offer home loan products for foreign nationals who do not have Permanent Resident status.

Other banks may also consider applicants without permanent residency if certain conditions are met.

So, it is not correct to say that getting a home loan in Japan is completely impossible without permanent residency.

However, the conditions vary considerably from bank to bank.

Banks may look at factors such as your annual income, employer, length of employment, status of residence, amount of your own funds, length of residence in Japan, and Japanese language ability.

For this reason, finding a bank that accepts applications from foreign residents does not necessarily mean that you should immediately proceed with the purchase of a property.

Japanese Language Ability Can Be a Major Hurdle

One issue that can be more important than people expect is Japanese language ability.

A home loan is a long-term contract. The bank needs to explain the loan agreement, group credit life insurance, and other important terms, and the borrower needs to understand them.

For this reason, some banks require applicants to be able to read and write Japanese and to understand the terms of the contract in Japanese.

Even if a bank has an English-language website, this does not necessarily mean that the entire loan application and contracting process can be completed in English.

As a result, even someone with sufficient income and assets may find that the number of banks available to them becomes limited because of the language requirement.

Self-Employed People and Company Owners May Face Additional Checks

If you are self-employed, a freelancer, or a company owner, the bank may examine the stability and continuity of your income more closely than it would for a salaried employee.

In practice, you may be asked to provide several years of tax returns or financial statements rather than only the most recent year. In some cases, a bank may ask for around three years of records.

One point that deserves particular attention here is your taxable income shown on your tax return.

Some business owners have relatively modest taxable income compared with their sales because they have properly recorded various business expenses.

There is, of course, nothing wrong with deducting legitimate and necessary business expenses. However, when you apply for a home loan, the income reported on your tax return will also be part of the information considered by the bank.

You may feel that your business is doing well, but the bank’s assessment of your income may be different from your own view of the business.

A Japanese Spouse Is Not Always Required

Another point that can cause confusion is whether a foreign borrower must be married to a Japanese national.

This is not a universal requirement. Some banks offer home loans to foreign residents without permanent residency without requiring them to have a Japanese spouse.

However, the rules differ significantly by bank. Some lenders impose other requirements concerning the borrower’s status of residence, Japanese language ability, income, employment history, or own funds. Others may require a spouse who is a Japanese national or Permanent Resident to act as a joint guarantor if the borrower does not have permanent residency.

For this reason, it is better not to assume either that having a Japanese spouse is necessary, or that a spouse’s nationality and residence status are irrelevant. The actual requirements depend on the bank and the loan product.

Meeting the Conditions on a Bank’s Website Does Not Guarantee Approval

This is one of the particularly difficult parts of home loans for foreign residents.

A bank’s website may state conditions such as “applications are accepted without permanent residency” or “annual income of at least ¥X is required.” However, these are generally only the basic conditions for entering the application process.

Even if you meet all the publicly stated requirements, there is no guarantee that you will pass the bank’s home loan screening.

For example, an initial consultation may suggest that financing is possible, but after the bank reviews your employment, status of residence, property, available funds, and other circumstances, it may ultimately decide that it cannot provide the loan.

Screening policies also differ among banks. An application that is difficult at one bank may still be considered by another.

It is therefore better not to assume that “this bank lends to foreigners, so I should be fine.”

The Housing Loan Tax Credit Is a Separate Question from Permanent Residency

From a tax perspective, it is important to separate two questions: whether you can obtain a home loan and whether you can claim Japan’s housing loan tax credit.

As a general rule, having Permanent Resident status is not itself one of the basic requirements for the housing loan tax credit.

This means that a foreign national without permanent residency may still be able to claim the credit if they purchase a qualifying home in Japan in which they actually live, use a qualifying home loan, and meet the other applicable requirements.

For someone moving into the home in 2026, the points to check generally include whether they move into the property within the required period after acquisition, whether the home meets the applicable floor-area requirements, whether the home loan has a repayment period of at least 10 years, and whether their total income falls within the applicable limit, generally ¥20 million or less.

However, this does not mean that everyone with income of ¥20 million or less can automatically claim the housing loan tax credit.

The treatment also depends on factors such as the type and energy efficiency of the property, floor area, move-in date, and whose name appears on the property ownership and loan documents.

Even If You Can Buy the Property with Cash, Using a Loan Is a Separate Decision

Some foreign residents have enough savings or other assets in Japan or overseas to purchase a home without borrowing.

Even in that situation, they may consider taking out a home loan in order to keep more cash available.

However, I would not recommend deciding that “a loan must be better because there is a housing loan tax credit.”

A home loan involves interest, administrative fees, and other costs, while the amount of the tax credit is also subject to limits.

It is better to look at the overall situation, including your assets, how long you expect to remain in Japan, the interest rate on the loan, and the tax effect.

If You Do Not Have Permanent Residency, Check Financing Before Choosing the Property

If you are a foreign national without permanent residency and are planning to buy a home in Japan, I think it is particularly important to check your financing options at an early stage.

Some of the points worth confirming include:

• Your current status of residence
• Whether you can understand the loan agreement in Japanese
• Whether you are salaried, self-employed, or a company owner
• Your length of employment or years in business
• The income shown on your tax returns
• How much of your own funds you can provide
• Your spouse’s nationality and status of residence, if applicable
• The property you are planning to purchase

It is also important not to build your entire purchase plan around the assumption that one particular bank will approve the loan.

Conclusion

It may be possible for a foreign national without permanent residency to obtain a home loan in Japan.

There are banks that may consider applicants who do not have a spouse visa, and from a tax perspective, the absence of permanent residency does not by itself mean that the housing loan tax credit is unavailable.

However, actually passing a home loan screening can be difficult.

Banks may consider Japanese language ability, status of residence, employment or business history, income, available funds, spouse-related circumstances, the property itself, and other factors. Their approach can also vary significantly from one bank to another.

Something may be possible under the rules without necessarily being possible in practice.

If you are planning to buy a home in Japan without permanent residency, it is better to keep this distinction in mind and speak with financial institutions and relevant professionals before committing to a property purchase.