Japan Mortgage for Foreigners: Who Can Borrow and How

The golden rule: resident AND salaried in Japan — otherwise cash

Japanese banks lend against a stable, verifiable income in yen, paid by a Japanese employer, to a borrower durably settled in the country. The consequence is simple, and we would rather tell you straight: a Japanese mortgage is reserved for people who reside in Japan AND hold a salaried job there. If that is not you, the purchase is made in cash — which is in fact how the vast majority of foreign investors buy, and the market lends itself well to it: quality properties start at ¥3–10M (€20,000–67,000).

Useful reminder: nationality is never an obstacle to buying — a foreigner can hold full freehold ownership without any visa, as explained in our guide to buying property in Japan. It is access to credit that is restrictive, not access to ownership.

Which banks lend to foreign residents?

For salaried residents, several institutions are used to foreign borrower files:

• SMBC Prestia (formerly Citibank Japan): English-language service, experienced with international profiles; accessible without permanent residency subject to income conditions.
• SBI Shinsei Bank: among the most competitive variable rates on the market, open to foreign residents.
• Megabanks (SMBC, MUFG, Mizuho): good conditions, but they generally require permanent residency eijūken or a Japanese spouse.
• Regional banks chihō ginkō and shinkin credit unions shin'yō kinko: case-by-case decisions, useful outside the big metros, often more flexible if you already bank locally.
• Flat 35: a fixed-rate loan of up to 35 years backed by the Japan Housing Finance Agency (Jūtaku Kin'yū Shien Kikō), open to foreign residents — for a primary residence only.

Eligibility criteria under the microscope

Japanese banks' criteria are formal and cumulative:

1. Residence status: permanent residency eijūken is the golden ticket; without it you need a long-term visa (work, spouse) and often a larger down payment.
2. Stable salaried employment (seishain): tenure kinzoku nensū of at least 1 to 3 years with the same employer; the self-employed are assessed on 2–3 years of accounts.
3. Income in yen: often a minimum of ¥4–5M per year (€27,000–33,000); income earned abroad barely counts.
4. Debt-to-income ratio hensai futan-ritsu: total repayments capped at roughly 30–35% of gross income.
5. Group credit life insurance dantai shin'yō seimei hoken (dan-shin): near mandatory, with a health questionnaire.
6. Age: the loan must generally be repaid before age 80.

Primary residence or rental investment?

These conditions apply to the residential loan (jūtaku loan). For a rental property you need an investor loan (apāto loan / fudōsan tōshi loan), which is pricier — often 1.5 to 4.5% — and even more demanding on profile. It, too, is reserved for residents.

2026 rates and terms: variable ~0.5–1%, fixed ~1.5–2%

Orders of magnitude observed in 2026, after the Bank of Japan's gradual policy normalisation:

• Variable rate hendō kinri: roughly 0.5 to 1% — the choice of most Japanese borrowers.
• Fixed rate kotei kinri (10 years and beyond): roughly 1.5 to 2%.
• Flat 35: roughly 1.5 to 2%, fixed for the entire term.

Terms run up to 35 years; the usual down payment is 10–20% (borrowers without eijūken are often asked for 20–50%). Even at these historically low levels, compare the all-in cost: guarantee fees (hoshō-ryō), arrangement fees (jimu tesūryō) and the dan-shin premium come on top of the headline rate.

Non-residents: Japanese banks will not lend — the real alternatives

Let us be clear: a non-resident cannot borrow from a Japanese bank for the kind of property we are discussing (house, condo, akiya, machiya). With no income in yen, no Japanese credit history and difficult legal recourse abroad, no retail bank will take the file. Beware of intermediaries promising otherwise.

The proven solutions, in order of frequency:

• Buying in cash — the normal route. The Japanese market is full of affordable properties: browse our hand-picked listings or our article on buying an akiya for budgets of ¥3–15M (€20,000–100,000).
• Financing in your home country: a personal or consumer loan (limited amounts, higher rates), or better, a mortgage or refinancing secured on a property you already own at home (in France, for instance) — the bank lends against your local assets, and you deploy the funds in Japan freely.
• A Lombard loan secured on a securities portfolio, for those who hold one.

A 100% cash budget even gives you a competitive edge: in Japan, an offer with no financing contingency (no financing contingency) is markedly more attractive to sellers and strengthens your negotiating position.

Resident vs non-resident: side-by-side comparison

Criterion	Salaried resident of Japan	Non-resident
Japanese bank loan	Yes, subject to conditions	No
Accessible banks	SMBC Prestia, SBI Shinsei, megabanks (with eijūken), regional banks, Flat 35	None for this type of property
Typical down payment	10–20% (more without eijūken)	100% (cash purchase)
Indicative 2026 rates	variable ≈ 0.5–1%, fixed ≈ 1.5–2%	—
Insurance dantai shin'yō seimei hoken	Required (health questionnaire)	—
Financing options	jūtaku loan, Flat 35, apāto loan (rental)	Cash, loan at home, mortgage on an existing property

Before deciding, run your scenario through our yield simulator (net yield, cash or credit); and to build a solid cash-purchase strategy from property search to key handover, our personalised support is there for exactly that.

Frequently asked questions

Can a non-resident foreigner get a mortgage from a Japanese bank?

No. Japanese banks require residence in Japan and salaried employment there, with income in yen. Without that, no retail bank will finance a house, condo or akiya. Non-residents buy in cash or arrange financing in their home country.

Do I need permanent residency (eijūken) to borrow in Japan?

Not always: SMBC Prestia or SBI Shinsei accept residents without eijūken subject to income and tenure conditions. But permanent residency changes everything — smaller down payment, better rates, access to the megabanks. Without it, expect to put down 20 to 50%.

How much down payment do Japanese banks require?

Plan for 10–20% of the price for a salaried resident with a solid profile, and more (20–50%) without permanent residency. Add the purchase costs — at most 6% of the price — payable in cash, plus the loan's guarantee and arrangement fees.

Can I borrow in my home country to buy in Japan?

Not with a standard mortgage: banks in France and most countries will not take security over a property located in Japan. You can however use a personal loan or, better, a mortgage or refinancing secured on a property you already own at home, then deploy the funds freely.

What is the Flat 35 loan (Flat 35)?

It is a fixed-rate loan with a term of up to 35 years, backed by the public Japan Housing Finance Agency (Jūtaku Kin'yū Shien Kikō) and distributed through banks. It is open to foreigners residing in Japan, but only to finance a primary residence — not a rental investment.