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Getting a Japan mortgage without permanent residency is challenging but entirely possible with the right preparation and financial profile.
As of September 2025, several Japanese banks actively lend to foreigners holding work visas, long-term residence permits, or spouse visas, though they typically require higher down payments and charge higher interest rates than permanent residents receive. Success largely depends on your visa type, income stability, employment status, and ability to provide substantial down payment funds.
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Japanese banks require non-permanent residents to provide 20-50% down payments compared to 10-20% for permanent residents, with interest rates typically 1-2% higher.
PRESTIA, Suruga Bank, and select international banks offer the most accessible mortgage options for foreigners without permanent residency status.
| Criteria | Permanent Resident | Non-PR Foreigner |
|---|---|---|
| Down Payment Required | 10-20% of property value | 20-50% of property value |
| Interest Rates | 0.27-2.0% annually | 1.47-2.9% annually |
| Loan Terms | Up to 35 years | 15-30 years maximum |
| Available Banks | All major Japanese banks | PRESTIA, Suruga, select others |
| Guarantor Required | Rarely needed | Sometimes required |
| Minimum Income | ¥5-10 million annually | ¥5-10 million annually |
| Employment History | 1+ years stable income | 1-2 years stable income |
What visa or residence status do I need to qualify for a Japan mortgage?
You need valid residence registration in Japan with a long-term visa to qualify for most Japanese mortgages.
Work visas (including engineer, specialist in humanities, and intra-company transfer visas) are the most commonly accepted by lenders. Spouse visas for those married to Japanese nationals or permanent residents also qualify at most banks. Long-term resident visas and investor/business manager visas can work with select lenders.
Tourist visas, student visas, and working holiday visas typically don't qualify for mortgage approval. Your visa must have at least one year remaining at application time, though banks prefer visas with longer validity periods. PRESTIA Bank stands out as the most flexible, accepting various visa types without requiring permanent residency status.
Banks verify your residence registration through your residence card and require proof of legal status in Japan. The stronger and more permanent your visa appears, the better your mortgage terms and approval chances become.
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How long must I live in Japan before applying for a mortgage?
Most Japanese banks require at least one year of continuous residence and stable income history before approving mortgage applications.
Employed applicants typically need one year of consistent employment with the same Japanese company, while self-employed individuals usually need two years of documented business income in Japan. Some banks prefer seeing 2-3 years of residence history, especially for non-permanent residents.
Your employment and residence timeline should align - banks want to see stable income generation during your time in Japan. Gaps in employment or frequent job changes can hurt your application. PRESTIA and Suruga Bank may consider shorter residence periods if you have exceptional financial profiles or significant down payment funds.
Longer residence periods (5+ years) significantly strengthen your application and may qualify you for better interest rates and terms. Banks view extended Japan residence as indicating commitment to staying long-term, reducing their lending risk.
What income requirements must I meet as a non-permanent resident?
Japanese banks typically require minimum annual incomes of ¥5-10 million for mortgage approval, with non-permanent residents often facing higher thresholds.
Your income must be verifiable through official Japanese tax documents, employment contracts, and bank statements. Income stability over the previous 2-3 years weighs heavily in approval decisions - banks prefer seeing consistent or growing income rather than volatile earnings.
Self-employed applicants face stricter scrutiny and often need higher minimum incomes (¥8-12 million annually) plus extensive business documentation. Your debt-to-income ratio cannot exceed 25-35% of monthly earnings, including the proposed mortgage payment.
Banks calculate lending capacity based on your net income after taxes and existing debt obligations. Higher incomes unlock larger loan amounts and potentially better interest rates, though non-permanent residents still face caps on loan-to-value ratios.
Does employment type affect my mortgage eligibility in Japan?
Both full-time employees and self-employed individuals can qualify for Japanese mortgages, though requirements differ significantly between these categories.
Full-time employees with Japanese companies face simpler application processes and often receive more favorable terms. Banks prefer seeing permanent employment contracts rather than fixed-term positions. Large, established companies carry more weight with lenders than small startups or foreign companies without significant Japan presence.
Self-employed applicants must provide extensive business documentation including tax returns, profit/loss statements, business registration documents, and bank statements covering 2-3 years. They typically need higher down payments and may face higher interest rates due to perceived income volatility.
Contract workers and freelancers fall into a middle category - some banks accept them if they can demonstrate consistent income streams over 2+ years. Independent contractors working for major Japanese companies may receive better consideration than pure freelancers.
How important is my credit history for mortgage approval?
| Credit Factor | Impact Level | Bank Requirements |
|---|---|---|
| Clean credit record | Essential | No late payments or defaults |
| Existing debt levels | High impact | Total payments under 25-35% of income |
| Credit card usage | Moderate impact | Regular use with on-time payments |
| Japanese credit history length | Moderate impact | Minimum 1-2 years preferred |
| Credit score range | High impact | Good to excellent scores required |
| International credit history | Low impact | May help but not primary factor |
| Bankruptcy or defaults | Application killer | Automatic disqualification |
How much should I save for a down payment in Japan?
Non-permanent residents typically need 20-50% of the property purchase price as a down payment, significantly higher than the 10-20% permanent residents pay.
For a ¥30 million Tokyo apartment, you should prepare ¥6-15 million in down payment funds depending on the bank and your financial profile. PRESTIA Bank often accepts 20-30% down payments from qualified non-permanent residents, while other banks may require 40-50% or more.
Beyond the down payment, budget for additional costs including earnest money (1-2% of purchase price), real estate agent fees (3% plus ¥60,000), registration fees, taxes, and legal costs totaling 6-8% of the property value. These expenses must come from your own funds, not borrowed money.
Banks require proof that down payment funds have been in your accounts for several months, not recently borrowed or transferred. Larger down payments strengthen your application and may unlock better interest rates or loan terms.
What down payment percentage do Japanese banks require from foreigners?
Japanese banks require non-permanent resident foreigners to provide 20-50% down payments compared to just 10-20% for permanent residents and citizens.
The exact percentage depends on your visa type, income level, employment stability, and chosen lender. Work visa holders with stable employment at large Japanese companies may qualify for 20-30% down payments at select banks. Those with shorter visa validity or less stable employment typically face 40-50% requirements.
PRESTIA Bank offers some of the lowest down payment requirements for foreigners, often accepting 20-25% from qualified applicants. Suruga Bank and other specialized lenders may require 30-40% depending on your profile. Major Japanese banks like MUFG or Sumitomo typically demand 40-50% from non-permanent residents.
Higher down payments demonstrate financial stability and reduce bank risk, potentially qualifying you for better interest rates. Some banks offer tiered pricing where larger down payments unlock premium loan terms.
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Which Japanese banks offer mortgages to non-permanent residents?
Several Japanese banks actively lend to foreigners without permanent residency, though options are more limited than for permanent residents.
PRESTIA (SMBC Trust Bank) leads the market for foreigner-friendly mortgage lending, accepting various visa types without permanent residency requirements. They offer competitive rates and don't typically require Japanese guarantors. Suruga Bank also maintains active foreign lending programs with reasonable terms for qualified applicants.
Bank of China and Bank of Communications, both Chinese-owned institutions operating in Japan, serve foreign customers including those without permanent residency. Some international banks with Japanese operations like Citibank may offer limited mortgage products to qualified foreign clients.
Major Japanese banks like MUFG, Sumitomo Mitsui, and Mizuho occasionally lend to non-permanent residents but typically require exceptional financial profiles, higher down payments, and may mandate Japanese guarantors. Regional banks sometimes offer more flexible terms than national institutions.
It's something we develop in our Japan property pack.
What interest rates and loan terms can I expect without permanent residency?
Non-permanent residents typically pay 1.47-2.9% annual interest rates, compared to 0.27-2.0% rates available to permanent residents and citizens.
Your interest rate depends on factors including down payment size, income level, employment stability, and chosen lender. PRESTIA often offers competitive rates around 1.5-2.2% for qualified foreign borrowers, while other banks may charge 2.5-2.9% or higher. Variable rates are common, though some fixed-rate options exist.
Loan terms for non-permanent residents typically range from 15-30 years maximum, shorter than the 35-year terms available to permanent residents. Some banks cap loan terms at 25 years for non-permanent residents regardless of age. Your loan term affects monthly payments significantly - a ¥20 million loan at 2% interest costs ¥96,000 monthly over 25 years versus ¥77,000 over 35 years.
Banks may offer tiered pricing where larger down payments or higher incomes qualify you for better rates. Some lenders provide rate discounts for setting up automatic payments or maintaining accounts with the bank.
Do I need a Japanese guarantor or co-signer for my mortgage?
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Guarantor requirements vary by bank, with some requiring Japanese guarantors while others accept applications without them.
PRESTIA Bank typically doesn't require Japanese guarantors from qualified foreign applicants, making them attractive for independent borrowers. Suruga Bank and some other specialized foreign lenders may waive guarantor requirements for applicants with strong financial profiles and substantial down payments.
Major Japanese banks often require guarantors, particularly for non-permanent residents. Japanese spouses can serve as guarantors and significantly strengthen applications. Some banks accept foreign guarantors with permanent residency status, though Japanese citizens or permanent residents are preferred.
Professional guarantor companies exist in Japan but charge fees and may not be accepted by all lenders. Strong employment history, high income, and large down payments can sometimes compensate for lack of guarantors at flexible banks.
What property types can I finance with a Japan mortgage as a non-permanent resident?
Most Japanese banks finance both new construction and existing residential properties for non-permanent residents, though investment properties face additional restrictions.
1. **New construction properties**: Brand new apartments, condominiums, and houses qualify at most lenders with standard terms2. **Existing residential properties**: Second-hand homes and apartments built within the last 20-25 years typically qualify3. **Investment properties**: Some banks finance rental properties but often require higher down payments (40-60%) and charge higher rates4. **Vacation homes**: Secondary residences may qualify at select lenders with stricter terms5. **Older properties**: Buildings over 25-30 years old may face financing restrictions or require specialized structural inspectionsBanks prefer properties in major metropolitan areas like Tokyo, Osaka, and Nagoya over rural locations. Condominium apartments often receive more favorable financing than detached houses due to liquidity concerns. Properties must meet building standards and have clear legal titles.
Some lenders restrict financing to properties you'll personally occupy rather than pure investment purchases. PRESTIA and other foreigner-friendly banks tend to have more flexible property type policies than traditional Japanese banks.
What documents do I need to apply for a Japan mortgage successfully?
Japanese mortgage applications require extensive documentation proving your identity, legal status, income, and financial stability.
**Identity and Legal Status Documents:**- Valid passport with current visa- Residence card showing registered address- Certificate of residence (juminhyo) from city hall- Health insurance certificate- My Number card or notification**Income and Employment Verification:**- Employment certificate from Japanese company- Income certificates for past 2-3 years- Tax withholding certificates (gensen choshuhyo)- Bank statements for 6-12 months- Annual tax returns if self-employed**Financial Documentation:**- Proof of down payment funds in Japanese bank accounts- Credit history report from Japanese credit agencies- Existing debt statements and loan balances- Life insurance policy documents- Property purchase contract and sales agreementSelf-employed applicants need additional business documents including profit/loss statements, business registration certificates, and detailed tax filings. All foreign documents require official Japanese translations from certified translators.
It's something we develop in our Japan property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Obtaining a Japan mortgage without permanent residency requires careful preparation but remains achievable with the right financial profile and documentation.
Success depends on choosing the right lender, maintaining stable employment and income, and preparing substantial down payment funds to meet bank requirements.
Sources
- Expatica - Japan Mortgage Guide
- Eaves Japan - Mortgages Without Permanent Residency
- Tokyo Portfolio - Housing Loans for Foreigners
- Real Estate Tokyo - Loan Information
- Matcha JP - Housing Loans in Japan
- Wise - Mortgage in Japan Guide
- RealEstate.co.jp - Mortgage Calculator
- E-Housing - Property Buying Guide