How difficult is it to apply for a loan without permanent residency in Japan? Which banks or financial institutions are relatively foreigner-friendly?

Buying Property in JapanloanforeignerJapanFinancial InstitutionsPermanent residency
Created At: 8/11/2025Updated At: 8/16/2025
Answer (1)

Okay, no problem. Let me break down applying for a mortgage in Japan without permanent residency (PR). Don't worry, it's not as hopeless as you might think.

How Difficult Is It to Get a Mortgage Without Permanent Residency?

In short: It's harder than with PR, but absolutely not impossible.

Think of it this way: When a bank lends you money, especially a large, long-term loan like a mortgage spanning decades, what are they most afraid of? That you might suddenly pack up and return to your home country, leaving behind a property and an unpaid loan.

  • Having PR = You have the intention and qualification to settle long-term in Japan. The bank sees a lower risk of you disappearing.
  • Not having PR = The bank has a question mark: "Will this person leave if their visa isn't renewed in a couple of years?"

So, the core of the review process is about proving to the bank: "I don't have PR yet, but I'm stable, I plan to stay in Japan long-term, and I have the ability to keep repaying the loan!"

Key Factors Banks Use to Judge Your "Reliability"

Even without PR, excelling in the following areas significantly boosts your chances:

  1. Residency Status (Visa Type)

    • Highly Skilled Professional Visa (高度専門職): This is a huge plus! Banks love it; some even treat it similarly to PR.
    • Spouse of Japanese National / Permanent Resident Visa: Also a major advantage, as your family ties strongly anchor you to Japan.
    • Engineer / Specialist in Humanities / International Services Visa (Technical/Humanities/Int'l Services): The most common scenario. Banks will scrutinize your employer and annual income more carefully.

  2. Length of Residence and Employment in Japan

    • Residence Duration: Generally, having lived in Japan for 3+ years is better, and 5+ years is even better. Longer duration demonstrates greater stability.
    • Employment Duration: Working continuously for the same company for 3+ years is a basic threshold. Frequent job changes make you seem unstable to banks.

  3. Employment Situation (Your "Job Security")

    • Company Size: Listed companies / Major corporations > Small/Medium Enterprises (SMEs) > Self-employed / Contract employees. Company stability reflects income stability.
    • Employment Type: Being a full-time employee (正社员) is essential. Contract employees (契約社員) or temporary staff (派遣社員) face significant difficulties.
    • Annual Income: Obviously, higher is better. Generally, an annual income of 4 million JPY+ is a safer starting point, and 5 million JPY+ opens up more options.

  4. Japanese Language Ability

    • This is crucial! Mortgage contracts are complex legal documents entirely in Japanese. If you cannot communicate fluently or understand the contract terms, banks worry about future communication costs and risks. Conversational to business-level proficiency is best.

  5. Down Payment (頭金)

    • This is the "trump card"! The larger your down payment, the less risk the bank takes on, naturally leading to a more lenient review. Generally, preparing 10%-20% of the property price as a down payment makes the loan process much smoother. If you can put down 20% or more, it's like giving the bank a major reassurance.

So, Which Banks Are Relatively Foreigner-Friendly?

This is what everyone cares about most. Here are some banks "known" to be more foreigner-friendly, along with their characteristics:

✅ Highly Recommended to Try:

  • SBI Shinsei Bank (SBI新生銀行)

    • Considered a long-standing foreigner-friendly bank. They have specialized mortgage products and processes for foreigners, with no strict PR requirement. If your job and income are stable, you have a good chance. Many people got their first mortgage here.

  • PRESTIA SMBC Trust Bank (PRESTIA SMBC信託銀行)

    • Formerly Citibank's Japanese retail business, so they have extensive experience serving foreign clients. If your income is good or you have assets overseas, strongly consider them. Their review approach is more international.

  • Flat 35 (via Agents like ARUHI / アルヒ)

    • 💡 Highlight this! Flat 35 is a product offered by the government-backed Japan Housing Finance Agency (JHF) in cooperation with private banks.
    • Biggest Advantage: The screening does not consider nationality, does not require PR, and doesn't require a guarantor. It focuses primarily on your personal and employment-based repayment capacity.
    • Features: Fixed interest rate, maximum 35-year term. Provides peace of mind for those worried about future rate hikes. Many people without PR have successfully bought homes through Flat 35. You can consult directly with specialized Flat 35 agents like ARUHI.

☑️ Can Be Considered as Alternatives:

  • Some Regional Banks (地方銀行 / Chigin)
    • If there's a larger regional bank in the area where you plan to buy (e.g., Bank of Yokohama, Chiba Bank), it's worth trying. If you have a stable job at a major company within their operational area, they sometimes offer more flexible policies to retain local customers.

⚠️ Higher Difficulty / Challenging:

  • Major Banks (メガバンク)
    • E.g., MUFG (Mitsubishi UFJ), SMBC (Sumitomo Mitsui Banking Corporation), Mizuho. Frankly, without PR, the bar here is quite high. They prefer the "safest" business and have very strict requirements for applicants. It's not impossible, but unless you work for a top-tier company with a very high income, the chances of rejection are higher.

Some Practical Advice

  1. Find a Reliable Real Estate Agent: An experienced agent, especially one who handles many foreign clients, is crucial. They have connections with banks and loan officers, know which banks have relaxed policies recently, and which banks favor certain profiles. This saves you a lot of trial and error.

  2. Focus on Saving Your Down Payment: Let me say it again: Money is the best pass. An extra 1 million JPY down payment speaks louder than a hundred "I love Japan"s.

  3. Get a Preliminary Screening (事前審査 / Jizen Shinsa) First: Before formally house hunting or signing contracts, get a free "preliminary screening" from several banks. This gives you a rough idea of how much you can borrow and which banks are more favorable, helping you plan realistically.

  4. Don't Get Discouraged, Keep Trying: If one bank says no, move on to the next. Getting rejected once is normal. Analyze the possible reason (income? job duration?), adjust your strategy, and try again.

Wishing you success in finding your ideal home!

Created At: 08-11 11:59:41Updated At: 08-12 01:59:58