Authored by the expert who managed and guided the team behind the Japan Property Pack
Everything you need to know before buying real estate is included in our Japan Property Pack
Yes, foreigners can get mortgages in Japan, but the process is different from many other countries and depends heavily on your residency status and profile.
In early 2026, Japan's mortgage market offers multiple paths for foreign buyers, from government-backed fixed-rate loans to specialized bank products designed for non-permanent residents.
This guide breaks down exactly what you need to know about eligibility rules, down payments, interest rates, and which banks are most likely to approve your application.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Japan.
Can foreigners get a mortgage in Japan right now?
Can a foreigner get a residential mortgage in Japan right now?
Yes, foreigners can get residential mortgages in Japan in early 2026, but the level of access varies significantly based on your residency status and financial profile.
Foreign nationals with Permanent Resident (PR) or Special Permanent Resident status have the easiest access to mortgages in Japan, as they qualify for the widest range of loan products including the government-backed Flat 35 program.
The most common restriction Japan banks impose on foreign applicants is the requirement for stable, verifiable income earned in Japan, combined with a longer employment history (typically 1 to 3 years with the same employer) compared to what Japanese citizens need.
By the way, we have a whole document dedicated to mortgages for foreigners in our property pack about Japan.
Can I get a mortgage in Japan without residency?
If you mean without living in Japan at all (no residence card, no Japanese address), then standard consumer residential mortgages are generally not available to you from mainstream Japan lenders in early 2026.
However, if you mean without permanent residency, then yes, some Japan banks will lend to foreign residents holding work visas, spouse visas, or long-term resident status, though the list of such lenders is shorter.
Banks in Japan that do lend to non-permanent residents typically require higher down payments (20 to 30% instead of 10%), longer employment history in Japan, and may charge slightly higher interest rates than what permanent residents receive.
By the way, we've written a blog article detailing residency and citizenship options that exist when you buy property in Japan.
Do banks require a local work contract in Japan right now?
For most Japan banks, having a local work contract with a Japanese employer is the fastest path to mortgage approval because it provides the clearest proof of stable, documentable income.
If you do not have a local work contract, some Japan banks will accept alternative proof such as multiple years of Japanese tax filings, foreign income documentation with official translations, or substantial cash reserves as a compensating factor.
When a local work contract is present, Japan banks typically require a minimum employment duration of 1 to 3 years with the same employer, though some foreigner-friendly banks like Tokyo Star Bank may accept as little as 6 months to 1 year for strong profiles.
Can self-employed foreigners qualify for a mortgage in Japan?
Yes, self-employed foreigners can qualify for mortgages in Japan, but the approval process is harder than for salaried employees because Japan banks strongly prefer predictable, easily documented income.
Japan banks typically require self-employed applicants to show at least 2 to 3 years of tax filings and business history, along with stronger evidence of income stability than what salaried applicants need to provide.
Is foreign income accepted for mortgages in Japan right now?
Some Japan banks accept foreign income for mortgage applications, but it is not the standard path and is handled on a case-by-case basis, usually reserved for applicants with otherwise strong profiles.
When foreign income is considered, Japan banks typically require official translations of income documents, proof of consistent tax payments, evidence of the income being transferred to Japan, and often a larger down payment to compensate for the added verification complexity.
Can I buy a primary home (and an investment property?) with a mortgage in Japan as a foreigner?
Yes, foreigners can get mortgages for primary homes (owner-occupied residences) in Japan, as this is the standard use case that most Japan mortgage products are designed to support.
Investment property financing is much more restricted in Japan because most consumer mortgage programs, including Flat 35, explicitly prohibit using the loan for properties rented to third parties, so foreigners buying for investment typically need different financing structures outside the standard residential mortgage lane.
If you're buying for investment, you might want to check our blog article about buying and renting out in Japan.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Japan versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the eligibility rules banks actually use in Japan?
What minimum monthly income do I need in Japan as of 2026?
As of early 2026, Japan banks do not have a single nationwide minimum income, but a realistic planning estimate for foreign buyers is around 400,000 yen per month (approximately 2,700 USD or 2,500 EUR), with many banks preferring higher incomes in the 600,000 to 900,000 yen range.
Most approved borrowers in Japan fall into an annual income range of 5 to 10 million yen (roughly 33,000 to 67,000 USD or 31,000 to 62,000 EUR), which gives them comfortable access to multiple lender options.
The minimum income requirement in Japan scales with the loan amount, because banks calculate affordability based on your debt-to-income ratio, so a larger property price means you need proportionally higher income to qualify.
Yes, Japan banks generally allow combining household incomes from multiple applicants (such as spouses) to meet the minimum threshold, which can significantly expand your borrowing capacity.
What debt-to-income limit do banks use in Japan right now?
Japan banks typically allow a maximum total debt-to-income ratio of 30 to 35%, with Flat 35 specifically capping the repayment burden at 30% for incomes under 4 million yen and 35% for incomes of 4 million yen or more.
When calculating your debt-to-income ratio, Japan banks include all existing debts such as car loans, credit card balances, student loans, personal loans, and any other mortgage payments you may have.
Do I need a local credit score in Japan right now?
Japan does not have a single credit score system like the United States, but banks will check your payment history through credit information agencies, so having a clean record with Japanese credit cards, phone contracts, or other loans helps your application.
Japan banks generally do not accept foreign credit reports as a substitute for local credit history, though they may consider them as supplementary documentation to support your overall financial profile.
Do banks require a local guarantor in Japan right now?
Many Japan banks do not require a personal guarantor for mortgage applications because they use guarantee companies (institutional guarantors) instead, and some foreigner-friendly banks like Tokyo Star Bank and PRESTIA explicitly waive this requirement.
Japan banks are most likely to request a personal guarantor when the applicant lacks permanent residency, has a thin Japanese credit history, works in self-employment, or is applying for a loan amount that stretches their income ratio.
When a guarantor is required in Japan, they typically need to be a Japanese citizen or permanent resident with stable income and the financial capacity to cover the loan if the borrower defaults.
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How much cash do I need upfront in Japan as of 2026?
What's the minimum down payment in Japan right now?
For foreign buyers in Japan, the minimum down payment typically ranges from 10 to 30%, with permanent residents often qualifying for lower amounts around 10% and non-permanent residents usually needing 20 to 30%.
Across different Japan banks and buyer profiles, the realistic range of down payments spans from 10% for strong permanent resident applicants to 40 to 50% for non-permanent residents with weaker profiles or unusual income situations.
Buyers in Japan who have permanent residency, stable salaried employment with a major company, high income relative to the loan amount, and a property in a prime urban location are most likely to secure lower down payment requirements.
What loan terms can I realistically get in Japan as of 2026?
What mortgage interest rates are typical in Japan as of 2026?
As of early 2026, the typical mortgage interest rate range for foreigners in Japan is 0.6 to 1.3% for variable-rate loans and 2.1 to 2.6% for long-term fixed-rate loans like Flat 35, though rates vary by lender and borrower profile.
The factors that most significantly influence the interest rate a foreign borrower receives in Japan include residency status (PR gets better rates), loan-to-value ratio (lower LTV means lower rates), employment stability, the chosen bank, and whether you pick variable or fixed rate.
Foreigners in Japan typically receive slightly higher interest rates than local residents, with the premium ranging from 0.1 to 0.5% for non-permanent residents at most banks, though permanent residents usually get the same rates as Japanese citizens.
The interest rate is one of the factors we look at when assessing whether now is a good time to buy a property in Japan.
Are fixed-rate mortgages available in Japan right now?
Yes, fixed-rate mortgages are available to foreigners in Japan, with the most standardized option being the Flat 35 program, which offers fixed rates for the entire 15 to 35 year loan term.
Japan banks typically offer fixed-rate period options of 2, 3, 5, 10, 15, or 20 years, after which the loan converts to variable rate or requires refinancing, alongside the full-term fixed options like Flat 35.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Japan. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
How do I maximize approval chances in Japan right now?
What financial profile gets "yes" fastest in Japan right now?
The ideal financial profile for fast mortgage approval in Japan includes being a permanent resident, having salaried employment with a stable company, maintaining a low debt-to-income ratio, and offering a substantial down payment along with a clean credit history.
Japan banks consider an ideal income level to be at least 5 to 7 million yen annually (approximately 33,000 to 47,000 USD or 31,000 to 44,000 EUR), combined with a debt-to-income ratio comfortably below 30% to ensure fast approval.
The most favored employment type in Japan is full-time salaried work with an established company, with a continuous employment history of at least 2 to 3 years at the same employer.
A down payment of 20% or more typically signals a strong applicant profile in Japan, though offering 30% or higher can unlock better rates and smoother approval, especially for non-permanent residents.
We give more detailed tips in our pack covering the property buying process in Japan.
What mistakes make foreigners get rejected in Japan right now?
The most common mistake that leads to mortgage rejection for foreigners in Japan is applying before building a sufficient Japanese credit footprint, such as having no local credit card history or bank account track record, which makes it hard for banks to assess your reliability.
The financial red flag that most often disqualifies foreign applicants in Japan is having high existing debts (car loans, credit cards, personal loans) that push the total repayment ratio above the 30 to 35% threshold banks allow.
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Which banks say yes to foreigners in Japan right now?
Which banks are most foreigner-friendly in Japan as of 2026?
As of early 2026, the banks considered most foreigner-friendly for mortgages in Japan include SMBC Trust Bank PRESTIA, Tokyo Star Bank, Suruga Bank, SBI Shinsei Bank, and Aeon Bank, all of which have explicit programs or track records serving non-Japanese residents.
What makes these Japan banks more accessible to foreign applicants is their English-language support, willingness to work with non-permanent residents, streamlined documentation processes, and staff experienced in handling the unique challenges foreign borrowers face.
Which banks accept non-resident borrowers in Japan right now?
For standard consumer residential mortgages in Japan, banks that accept truly non-resident borrowers (people living outside Japan with no residence card) are extremely rare in early 2026, as most lenders require Japanese residency for income verification and loan enforcement reasons.
The realistic path for non-residents interested in Japan property is to either establish residency first, use cash purchases, or explore specialty private banking solutions that fall outside the normal consumer mortgage market.
Do international banks lend more easily in Japan right now?
International banks operating in Japan are not automatically looser on lending requirements, but they can be operationally easier due to English-language documentation, familiarity with foreign applicants, and understanding of cross-border financial profiles.
International banks with a presence offering mortgages to foreigners in Japan include SMBC Trust Bank PRESTIA (which inherited Citibank Japan's operations), as well as Bank of China and Bank of Communications for clients with Chinese connections.
The main advantage of using an international bank for a mortgage in Japan is the smoother communication process, English-language support throughout the application, and staff who understand common challenges faced by foreign buyers.
We made this infographic to show you how property prices in Japan compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Japan, we always rely on the strongest methodology we can... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Japan Housing Finance Agency (Flat 35) | Official rulebook for Japan's main government-backed fixed-rate mortgage program. | We used it to establish hard eligibility rules for foreigners, including permanent residency requirements and debt-to-income caps. We also used it to clarify owner-occupancy restrictions. |
| JHF Flat 35 Rate Page (January 2026) | Official monthly publication of Flat 35 market rates from participating lenders. | We used it to anchor real January 2026 fixed-rate pricing. We also used it to show how rates change based on loan-to-value ratio. |
| JHF Housing Loan User Survey | Official JHF research portal with recurring survey data on actual borrowers. | We used it to estimate what borrowers actually pay, typical LTV bands, and variable-vs-fixed preferences. We used it as a reality check against advertised bank rates. |
| Bank of Japan Policy Decision (December 2025) | Primary source for Japan's policy rate that influences variable mortgage pricing. | We used it to anchor the early 2026 interest rate environment at 0.75%. We used it to explain why variable rates are drifting upward from the ultra-low era. |
| Tokyo Star Bank (Star Mortgage) | Primary lender page describing an actual mortgage product for foreign customers. | We used it as evidence that some Japan banks lend to non-PR foreign residents. We used it to pull practical details like terms and conditions for this specific product. |
| SMBC Trust Bank PRESTIA | Primary lender page from a major bank that explicitly supports English-language mortgage handling. | We used it to identify a mainstream foreigner-facing lender channel. We used it to support our bank recommendations with verifiable product information. |
| SMBC Trust Bank PRESTIA Application Flow | The bank's own published process steps for mortgage applications. | We used it to describe the end-to-end mortgage timeline in Japan. We used it to keep the process section concrete and practical. |
| Financial Services Agency (FSA) | Japan's banking regulator and the authority for regulated-sector oversight. | We used it as the regulator reference point for readers wanting official oversight context. We used it to ground our article in Japan's regulated banking system. |
| National Tax Agency (NTA) | Japanese government authority for national taxes and official explanations. | We used it as the official starting point for tax responsibilities that come with property ownership. We used it to avoid relying on unofficial tax summaries. |
| Ministry of Land, Infrastructure, Transport and Tourism (MLIT) | Official government document summarizing Japan's real estate transaction law structure. | We used it to frame property buying as a regulated, rules-based process. We used it to keep the article grounded in official institutions. |
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