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
Obtaining a mortgage in Japan as a non-resident in 2026 remains highly challenging, with most banks preferring permanent residents or long-term visa holders. Non-residents face strict eligibility requirements, higher down payments of 30-50%, and limited bank options, making careful planning essential for property financing success.
If you want to go deeper, you can check our pack of documents related to the real estate market in Japan, based on reliable facts and data, not opinions or rumors.
Non-residents can access mortgages from select Japanese banks but face significant barriers including 30-50% down payments and limited institutional options.
Permanent residency status dramatically improves mortgage accessibility, while temporary visa holders are almost always excluded from lending programs.
| Factor | Non-Residents | Permanent Residents |
|---|---|---|
| Down Payment Required | 30-50% | 10-28% |
| Loan-to-Value Ratio | 50-70% | Up to 90% |
| Interest Rates | Above 2% | 0.179%-1.380% |
| Bank Options | Very Limited (5-6 banks) | Most Major Banks |
| Loan Terms | Shorter/Less Flexible | 25-35 years standard |
| Documentation Requirements | Extensive + Guarantor Often Required | Standard Requirements |
| Property Location Restrictions | Urban Areas Only | Broader Geographic Options |
What are the exact eligibility requirements for non-residents to get a mortgage in Japan in 2026?
Most Japanese banks do not offer mortgages to non-residents, with only a handful of specialized institutions providing this service.
Non-residents must demonstrate significant financial stability and meet stringent documentation requirements. Banks require proof of income that is taxed in Japan, which immediately excludes most non-residents who earn their income abroad. The applicant must hold a valid visa with at least one year remaining and provide comprehensive financial documentation including tax statements, employment verification, and Japanese bank account history.
Additional eligibility factors include having a Japanese guarantor or spouse, maintaining a stable income source, and demonstrating the ability to service debt payments. Banks also evaluate the applicant's credit history, employment stability, and overall financial profile. Some institutions may require existing banking relationships or minimum account balances.
Corporate affiliations with Japanese companies or multinational corporations can improve approval chances. Banks prefer applicants who have lived or worked in Japan for extended periods, as this demonstrates commitment and stability in the local market.
As of September 2025, the approval rate for non-resident mortgage applications remains extremely low, with most successful applicants having strong ties to Japan through employment or family connections.
What types of visas or residency statuses make it easier to qualify for a mortgage?
Permanent residency status provides the best access to mortgage products, with most major Japanese banks offering standard lending terms to permanent residents.
Long-term work visas with at least one year validity significantly improve approval chances, particularly for professionals working with established Japanese or international companies. Engineer/Humanities/International Services visas and Skilled Worker visas are generally viewed favorably by lenders, especially when held by applicants with stable employment contracts.
Spouse visas for those married to Japanese nationals offer another pathway to mortgage approval, often with reduced documentation requirements and the possibility of having the Japanese spouse serve as a guarantor. This visa type demonstrates long-term commitment to residing in Japan.
Business Manager visas can facilitate mortgage approval for entrepreneurs and business owners, though banks scrutinize business income and stability more carefully. Student visas and temporary visitor permits are almost always excluded from mortgage eligibility.
It's something we develop in our Japan property pack.
What is the minimum down payment percentage that non-residents are typically asked to provide?
Non-residents must prepare substantially higher down payments compared to Japanese residents, with most banks requiring 30-50% of the property purchase price as a down payment.
This elevated down payment requirement reflects the higher perceived risk associated with non-resident borrowers. Banks use these larger down payments to mitigate potential losses from currency fluctuations, income instability, or borrower relocation outside Japan. The exact percentage depends on the applicant's financial profile, visa status, and the lending institution's risk assessment.
Permanent residents and long-term visa holders may access lower down payment options, typically ranging from 10-28% depending on their employment stability and income level. Japanese citizens generally qualify for the lowest down payment requirements, sometimes as low as 5-10% with certain banks.
Property location and type also influence down payment requirements, with urban residential properties in Tokyo, Osaka, or Kyoto potentially qualifying for slightly lower percentages compared to rural or resort properties.
Additional liquid assets beyond the down payment are often required to demonstrate financial reserves, typically equivalent to 6-12 months of mortgage payments.
What is the maximum loan-to-value ratio banks are expected to allow for non-residents in 2026?
Japanese banks typically offer non-residents a loan-to-value ratio of 50-70%, meaning they will finance up to 50-70% of the property's appraised value.
| Borrower Type | Typical LTV Ratio | Maximum LTV Ratio |
|---|---|---|
| Non-Residents | 50-70% | 70% |
| Long-term Visa Holders | 60-80% | 80% |
| Permanent Residents | 80-90% | 90% |
| Japanese Citizens | 80-95% | 95% |
| First-time Buyers (Citizens) | 85-100% | 100% |
| Investment Properties | 60-80% | 80% |
| Rural Properties | 50-70% | 70% |
Don't lose money on your property in Japan
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What are the typical interest rates offered to non-residents compared to Japanese residents?
Non-residents face significantly higher interest rates than Japanese residents, often paying above 2% compared to resident rates as low as 0.179%-1.380%.
This interest rate premium reflects the additional risk banks perceive in lending to non-residents, including currency exposure, potential relocation risk, and income verification challenges. The exact rate depends on multiple factors including the applicant's creditworthiness, visa status, employment stability, and the lending institution's risk policies.
Variable rate mortgages for non-residents typically start around 2.5-4%, while fixed-rate options may range from 3-5% depending on the term length. Banks with specialized foreign customer divisions may offer slightly more competitive rates, particularly Tokyo Star Bank, Prestia, and Suruga Bank.
Long-term visa holders with stable income may negotiate rates closer to resident levels, particularly if they have existing banking relationships or substantial assets in Japan. Corporate-backed mortgages through employer relationships can sometimes secure preferential pricing.
Exchange rate hedging products may be required or recommended, adding additional costs to the overall borrowing expense for non-residents earning income in foreign currencies.
What documents and proof of income do banks require from a foreign borrower?
Japanese banks require extensive documentation from foreign borrowers, significantly more than what Japanese residents must provide.
Core documentation includes a valid passport, residence card or visa documentation, and comprehensive income verification through tax statements proving income is taxed in Japan. Employment-related documents must include salary certificates, employment contracts, and company registration information for the employer.
Financial documentation requirements encompass Japanese bank statements covering 6-12 months, tax returns for the most recent 2-3 years, and proof of assets including savings, investments, and other properties. Many banks require income certificates stamped by the employer or tax office for additional verification.
Property-specific documents include the purchase contract, property registration documents, building inspection reports, and detailed property information including floor plans and neighborhood analysis. Insurance documentation and proof of down payment funds must also be provided.
Additional requirements may include guarantor information and documentation if applicable, proof of address in Japan, and translated versions of foreign documents with official certification. Some banks require applicants to maintain minimum account balances throughout the application process.
What are the most common loan terms available for non-residents?
Non-residents typically access mortgage terms ranging from 15-25 years, which are shorter than the 25-35 year terms commonly available to Japanese residents.
1. **Repayment Period Options:** - Short-term loans: 1-10 years (higher monthly payments, lower total interest) - Standard loans: 15-25 years (most common for non-residents) - Extended loans: 25-35 years (limited availability, requires excellent credit) - Bridge loans: 6 months - 2 years (for immediate financing needs) - Balloon payment structures: Lower monthly payments with large final payment2. **Payment Structure Variations:** - Fixed monthly payments throughout the loan term - Step-up payments that increase annually - Interest-only periods followed by principal and interest payments - Seasonal payment adjustments for irregular income - Bi-weekly payment options to reduce total interest paid3. **Interest Rate Options:** - Fixed-rate mortgages (rates locked for entire term) - Variable-rate mortgages (rates adjust with market conditions) - Hybrid products (fixed rate for initial years, then variable) - Capped variable rates (maximum rate limit protection) - Foreign currency-linked products (for specific circumstances)4. **Prepayment and Flexibility Features:** - Partial prepayment options without penalties - Full prepayment allowances with fee structures - Payment holiday provisions for financial difficulties - Rate conversion options between fixed and variable - Loan amount increase options for property improvements5. **Specialized Terms for Non-Residents:** - Mandatory life insurance coverage requirements - Currency hedging product integrations - Automatic payment systems from Japanese bank accounts - Annual income re-verification requirements - Property management oversight for investment propertiesWhat are the minimum and maximum loan amounts that non-residents can realistically expect to access?
Non-resident mortgage amounts typically range from 500,000 yen (approximately $3,200) to 100 million yen (approximately $640,000), though actual amounts depend heavily on income levels and property values.
Minimum loan amounts reflect banks' desire to maintain profitability on smaller loans while covering administrative costs. Some specialized lenders may offer lower minimums for specific property types or borrower profiles, particularly for condominiums in central Tokyo or Osaka.
Maximum loan amounts are determined by income multiples, typically 4-6 times annual income for non-residents compared to 8-10 times for Japanese residents. Banks also consider debt-to-income ratios, usually capping total monthly debt payments at 25-35% of gross monthly income for non-resident borrowers.
Property value significantly influences maximum loan amounts, with banks rarely lending more than 70% of appraised value for non-residents. High-value properties in prime locations may access larger loan amounts, while rural or specialized properties face stricter limits.
It's something we develop in our Japan property pack.
What additional costs should a non-resident plan for when getting a mortgage?
Non-residents should budget approximately 6-8% of the property purchase price for additional costs beyond the down payment and mortgage amount.
| Cost Category | Percentage of Property Price | Estimated Amount (Ā„10M Property) |
|---|---|---|
| Registration and Legal Fees | 1-2% | Ā„100,000-200,000 |
| Real Estate Agent Commission | 3% | Ā„300,000 |
| Property Acquisition Tax | 1-3% | Ā„100,000-300,000 |
| Stamp Duty and Documentation | 0.5-1% | Ā„50,000-100,000 |
| Property Survey and Inspection | 0.2-0.5% | Ā„20,000-50,000 |
| Mortgage Application and Processing | 0.5-1% | Ā„50,000-100,000 |
| Fire and Earthquake Insurance | 0.1-0.3% annually | Ā„10,000-30,000 annually |
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.
Which Japanese banks or financial institutions are most open to offering mortgages to non-residents?
Five primary banks specialize in providing mortgage services to non-residents and foreign nationals in Japan.
Tokyo Star Bank leads the market with its dedicated "Star Mortgage" product designed specifically for non-residents and foreigners. This institution offers English-language service, flexible documentation requirements, and competitive rates for qualified applicants. Their mortgage specialists understand the unique challenges non-residents face and provide tailored solutions.
Prestia Bank (SMBC Trust Bank) caters to international clients with multilingual support and specialized mortgage products for foreign nationals. They offer both residential and investment property financing with competitive terms for qualified borrowers. Their international banking experience makes them particularly suitable for high-net-worth non-residents.
Suruga Bank provides innovative mortgage solutions for foreigners, including flexible income verification processes and competitive interest rates. They have developed specific products for non-residents and offer comprehensive support throughout the application process.
Aeon Bank offers accessible mortgage products with simplified application processes and competitive rates. Their retail banking focus makes them particularly suitable for first-time foreign buyers seeking straightforward mortgage solutions.
Shinsei Bank rounds out the options with specialized international services and mortgage products designed for foreign residents and non-residents. They provide English-language support and understand the complexities of cross-border income verification.
How does foreign currency income affect the approval process, repayments, and exchange rate risks?
Foreign currency income significantly complicates mortgage approval and introduces substantial exchange rate risks that many banks prefer to avoid.
Banks face challenges verifying foreign income sources, as they must assess the stability and legitimacy of overseas employment or business income. Documentation requirements become more complex, often requiring translated and certified documents from foreign tax authorities, employers, or accountants. Income volatility due to currency fluctuations makes it difficult for banks to assess true repayment capacity.
Repayment complications arise when borrowers earn in currencies other than yen but must make mortgage payments in Japanese yen. Monthly payment amounts can fluctuate significantly based on exchange rate movements, potentially creating financial stress for borrowers when their currency weakens against the yen. Some banks require currency hedging products or maintain higher cash reserves to mitigate these risks.
Exchange rate risks affect both borrowers and lenders, with borrowers potentially facing payment increases of 20-30% or more during adverse currency movements. Banks may require additional guarantees, higher down payments, or impose stricter debt-to-income ratios for foreign currency earners. Some institutions offer multi-currency mortgage products, though these come with additional complexity and costs.
Japanese-taxed income remains strongly preferred by all lenders, as it provides clearer verification, reduces currency risk, and demonstrates commitment to the Japanese market. Non-residents should consider establishing yen-based income sources before applying for mortgages to improve approval chances and reduce ongoing financial risks.
What restrictions exist on the types of properties non-residents can finance with a mortgage in Japan?
Banks strongly prefer financing urban residential properties in major metropolitan areas, with significant restrictions on rural, commercial, or specialized property types.
Geographic restrictions favor properties in Tokyo, Osaka, Kyoto, and other major cities where property values remain stable and resale markets are liquid. Rural properties, mountain homes, and resort properties face much stricter lending criteria or complete exclusion from mortgage programs. Banks view urban properties as lower risk due to better transportation access, employment opportunities, and property value stability.
Property type limitations typically exclude commercial properties, mixed-use buildings, and specialized structures like traditional Japanese houses requiring extensive maintenance. New or recently constructed condominiums and single-family homes receive preferential treatment, while older properties may face additional inspection requirements or value adjustments.
Investment property financing carries additional restrictions, with many banks requiring higher down payments, shorter loan terms, and rental income verification. Some institutions exclude short-term rental properties or require specific property management arrangements to ensure proper maintenance and regulatory compliance.
Building standards and earthquake resistance requirements must meet current Japanese construction codes, with older properties potentially requiring costly upgrades or facing reduced loan amounts. Properties in flood zones, landslide areas, or other natural disaster risk zones may be excluded from mortgage programs entirely.
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.
Non-resident mortgage access in Japan remains highly restricted, with success requiring significant financial preparation, proper visa status, and realistic expectations about terms and costs.
The key to success lies in establishing strong ties to Japan through employment, residency, or family connections while working with specialized banks that understand foreign borrower needs.
Sources
- E-Housing - Guide to Housing Loans and Mortgages in Japan for Foreigners
- E-Housing - Housing Loans Guide for Foreigners
- Wise - Mortgage in Japan Guide
- Solid Real Estate Japan - Foreign Buyer Mortgages
- Dovetail - Home Loans in Japan for Foreigners
- Tokyo Luxury Towers - Japan Mortgage Financing Guide
- Real Estate Tokyo - Loan Information
- Taxes for Expats - Foreigners Buying Property in Japan