For many foreigners looking to buy a house in Japan, one of the first questions is how to finance the purchase. You may have found a newly built home near Kyoto, an older property in Shiga, or an akiya with potential, only to wonder whether a Japanese bank will lend to you. The short answer is yes, some foreigners can obtain a Japanese mortgage—but eligibility depends largely on where you live, your income, and your status of residence rather than simply the passport you hold.
The Core Rule: Residency Matters More Than Nationality
Japanese banks lend against stable, verifiable income earned in Japan and against a borrower who appears settled here. Nationality itself is rarely the deciding factor. What the bank wants to know is whether you are likely to stay, whether your income is local and reliable, and whether they can enforce the loan if something goes wrong.
That produces three clear tiers in practice.
Permanent Residents
If you hold permanent residency (永住権), most major banks treat you essentially the same as a Japanese national. You can apply at MUFG, Mizuho, SMBC, Resona and others under standard products. You also qualify for the government-backed Flat 35 long-term fixed-rate program.
Typical advantages include:
- Lower down-payment expectations (often 0–20 %)
- Competitive variable rates (frequently in the 0.3–0.8 % range in 2026)
- Higher loan-to-income multiples
- Full product range, including longer terms
For permanent residents with stable employment and clean documentation, the process is relatively straightforward.
Non-Permanent Residents Living in Japan
Work-visa holders, highly skilled professionals, and spouses of Japanese nationals can still obtain mortgages, but the menu shrinks and the terms tighten. A handful of lenders are known to consider these applications:
- SMBC Prestia (strong English support, no permanent-residency requirement)
- Tokyo Star Bank (Star Mortgage product)
- SBI Shinsei Bank (often works better with a Japanese or permanent-resident spouse as co-signer)
- Suruga Bank and some regional banks or credit unions
Expect higher down payments (commonly 20–30 % or more), slightly higher rates (often 0.8–1.4 % variable), stricter income thresholds, and a preference for longer continuous employment in Japan. Flat 35 is generally unavailable without permanent residency. Annual income requirements vary by bank; some look for ¥3–5 million as a starting point, while others set higher bars for non-permanent applicants.
A Japanese spouse as co-borrower or guarantor improves the odds significantly at several institutions.
Non-Residents Living Overseas
Standard Japanese bank mortgages are effectively unavailable. Without a residence card, a Japanese address, and yen-denominated income that the bank can verify, retail lenders will not take the application. Most overseas buyers simply purchase with cash. A very small number of specialist or private-banking arrangements exist, but they usually involve higher rates, lower loan-to-value ratios, larger minimum loan sizes, or corporate structures. They are not realistic for typical residential purchases.
New Builds Versus Used Houses
Banks care more about appraisal value, condition, and marketability than the simple “new versus used” label. Newly built houses and recent, well-documented renovations tend to appraise cleanly and meet technical standards more easily. Older used houses and akiya can still be financed if they pass inspection, but lenders may apply lower loan-to-value ratios, require larger down payments, or decline properties with significant deferred maintenance or structural concerns.
Flat 35 has specific technical requirements that many older wooden houses struggle to meet. Location also matters: a well-connected Kansai property is generally viewed more favourably than a remote rural one for lending purposes.
What Banks Actually Look For
Beyond residency status, the usual checklist includes:
- Stable salaried employment in Japan (often one to three years with the same employer)
- Verifiable Japanese-source income and tax records
- Acceptable debt-to-income ratio
- Eligibility for group credit life insurance
- Clear title and a property that appraises adequately
Japanese-language ability is often expected for contracts and ongoing communication, although SMBC Prestia is a notable exception with English support. Criteria can shift by branch and over time, so current product pages and a direct conversation with the lender remain essential.
A Practical Takeaway
If you live and work in Japan with permanent residency, Japanese financing is realistic for both new and used houses under terms close to those offered to Japanese nationals. If you hold a long-term visa and strong local income, specialist lenders such as SMBC Prestia can still make a loan work, though with stricter conditions. If you live overseas, cash remains the standard path.
The legal right to buy is open. The practical ability to borrow is narrower and tied to how settled you are in the Japanese system. Understanding that distinction early saves time and prevents disappointment later.
Read More
Related guides for foreign and overseas property owners:
- Property Management in Japan for Foreign Owners (2026) — Practical realities of ownership while living abroad.
- Cost of Owning a House in Japan: Kansai Guide — Ongoing ownership costs beyond the purchase price.
- Real Estate Fees in Japan: What Buyers Need to Know — Transaction costs that sit alongside any mortgage.
- Why Managing a Japanese Property From Overseas Can Be Difficult — Common friction points after the purchase is complete.
Need Help Managing Your Property in Japan?
If you own or are considering a property in the Kansai region and want reliable local support with inspections, utility management, or ongoing care, we are happy to discuss your situation.