Banks Offering Home Loans to Foreigners in Japan: The Complete 2025 Guide

Buying a home in Japan as a foreigner is entirely possible — and increasingly common. One of the biggest hurdles, however, is securing financing. While major Japanese banks historically reserved mortgages for Japanese nationals or permanent residents, the landscape has shifted significantly. Today, a growing number of banks offer home loans to foreign residents, even those without permanent residency status.

This guide covers the top banks offering home loans to foreigners in Japan, their requirements, interest rates, and practical tips for improving your approval chances.

Can Foreigners Get a Home Loan in Japan?

Yes — foreigners with a valid long-term residence status in Japan can apply for a home loan. There are no legal restrictions on foreign ownership of land or property in Japan. The question is not whether you can own property, but whether a bank will lend you the money to buy it.

Most major Japanese banks (Mitsubishi UFJ, Mizuho, SMBC) traditionally preferred applicants with permanent residency or Japanese nationality. However, several institutions have developed specific programs for non-permanent residents, particularly in response to growing demand from Japan's international workforce.

Key eligibility factors that Japanese banks evaluate:

• Visa status: Permanent resident (PR) status is preferred, but some banks accept work, spouse, or other long-term visas
• Income: Stable, taxable income in Japan (typically ¥2–5 million annually minimum)
• Employment history: Usually 1–3 years with current employer
• Credit history: No bankruptcies; good domestic financial record
• Debt-to-income ratio: Loan repayment should generally be 30–35% or less of annual income
• Age: Loan must be fully repaid by age 75–80

For more context on the overall home buying process, see our Step-by-Step Home Buying Process in Japan for Foreigners guide, and our broader article on Mortgages and Home Loans for Foreigners in Japan.

Top Banks Offering Home Loans to Foreigners in Japan

1. SMBC Trust Bank (Prestia) — Best Overall for Foreigners

Prestia is widely regarded as the most foreigner-friendly major bank for home loans in Japan. Originally built on Citibank Japan's operations, Prestia has a long history of serving international clients and explicitly does not require permanent residency.

Loan Details:

• Loan range: ¥10 million to ¥500 million
• Fixed interest rates: approximately 1.1–1.8%
• Investment property loans also available (¥5–100 million; rates 1.73–2.00%)
• Maximum loan term: 35 years
• Minimum annual income: ¥5 million (home loans); ¥7 million (investment loans)

Why Choose Prestia:

• English-speaking mortgage representatives
• English-language documentation and internet banking
• One of the few major banks openly accepting non-PR applicants
• Strong support for applicants employed at major international companies

Contact: 0120-004-847

2. Suruga Bank — Most Flexible for Non-PR Residents

Suruga Bank actively welcomes consultations from non-permanent residents and has built a reputation for flexibility in evaluating foreign applicants.

Loan Details:

• Flexible loan amounts
• Loan terms up to 50 years (longer than most Japanese banks)
• Variable interest rates: approximately 1.5–3.0%
• Primarily Japanese-language operations

Why Consider Suruga:

• Longest available loan terms in Japan (50 years)
• More flexible income and employment criteria than Prestia
• Willing to work with self-employed foreign residents
• Good option for buyers who don't meet Prestia's ¥5 million income threshold

3. SBI Shinsei Bank — Strong Bilingual Option

SBI Shinsei Bank accepts non-PR applicants with a valid residence card and offers bilingual (Japanese/English) customer support.

Loan Details:

• Loans: ¥5 million to ¥100 million
• Fixed interest rates: approximately 1.9–3.2%
• Minimum annual income: ¥3 million
• Employment requirement: 2+ years continuous employment
• Permanent residency: Not required (PR or Japanese spouse as guarantor preferred)

Why Consider SBI Shinsei:

• Lower income threshold (¥3 million vs Prestia's ¥5 million)
• Bilingual support staff
• Competitive for mid-range property purchases

Contact: 0120-456-515

4. Tokyo Star Bank — Star Mortgage for Non-PR Residents

Tokyo Star Bank offers a dedicated product called the Star Mortgage, specifically designed for non-permanent residents with stable income.

Loan Details:

• Loan range: ¥500,000 to ¥100 million
• Maximum LTV (loan-to-value): 90%
• Maximum loan term: 35 years
• Employment requirement: 6+ months (employed); 3+ years (self-employed)
• Permanent residency: Not required for Star Mortgage product

Why Consider Tokyo Star Bank:

• Lower minimum loan amount (¥500,000) — good for smaller purchases
• Dedicated product for non-PR residents
• Note: limited English support compared to Prestia or Shinsei

5. Mizuho Bank — For Applicants in PR Process

Mizuho Bank, one of Japan's "Big Three" banks, traditionally requires permanent residency. However, it accepts applications from those who are currently applying for PR status — a notable exception that makes it worth considering if your PR application is in progress.

Requirements: Similar to other major banks — stable income, employment history, good credit, and existing long-term visa.

Bank Comparison Table

Rates as of 2024–2025. Always confirm current rates directly with the bank.

Down Payment Requirements for Foreign Buyers

Down payment expectations differ significantly depending on your residency status:

• Permanent residents: Standard 20% down payment, similar to Japanese nationals
• Non-permanent residents (work/spouse visa): Typically 30–50% down payment required
• Non-residents or short-term visa holders: May not qualify at all

This means that if you're on a work visa, you should budget for a larger upfront cash requirement. A ¥50 million property could require ¥15–25 million in cash before financing.

For a full breakdown of what purchasing costs to expect, see our Hidden Costs and Fees When Buying Property in Japan guide.

Fixed vs. Variable Rate: What Should Foreigners Choose?

Nearly 80% of Japanese mortgage borrowers choose variable-rate loans due to Japan's historically low interest rate environment. However, with interest rates beginning to rise, this choice carries more risk than it did in previous years.

Variable Rate Pros: Lower initial payments; beneficial if rates stay low Variable Rate Cons: Payment increases if rates rise; harder to budget long-term

Fixed Rate Pros: Payment certainty; protection from rate increases Fixed Rate Cons: Higher initial rate; may overpay if rates stay low

For foreigners, who may face additional income uncertainty (visa renewals, potential relocation), fixed-rate loans often offer more financial predictability and are worth the slight premium.

Tips to Improve Your Mortgage Approval Chances

Getting pre-approved before you start seriously house hunting is one of the most effective strategies. Pre-approval typically takes 1–2 weeks, and showing sellers a bank pre-approval signals that you're a serious, reliable buyer — which can also strengthen your negotiating position on price.

Additional tips:

1. Get permanent residency if possible — PR dramatically expands your bank options and improves loan terms
2. Stay with the same employer — 2–3 years continuous employment is a strong indicator for banks
3. Maintain clean Japanese financial records — pay taxes on time, avoid late payments
4. Reduce other debts — car loans, credit card debt reduce your available borrowing capacity
5. Apply to multiple banks — many successful foreign buyers apply to 2–3 banks simultaneously to compare offers
6. Use a bilingual real estate agent — they often have relationships with foreigner-friendly lenders

For guidance on Visa and Residency Considerations for Property Buyers in Japan, our dedicated guide covers how your visa status affects the entire purchase process.

The Application Process: Step by Step

1. Gather documents: Passport, residence card, tax certificates (源泉徴収票 or確定申告書), bank statements, employment certificate, property details
2. Submit preliminary application (仮審査/事前審査): Takes 1–2 weeks; basic creditworthiness check
3. Receive preliminary approval: Bank confirms loan amount and basic conditions
4. Sign purchase contract: Use preliminary approval to proceed with purchase agreement
5. Submit formal application (本審査): Takes 1–3 weeks; full document review
6. Receive formal approval and sign loan agreement
7. Complete purchase and begin repayments

Resources and Further Reading

For expat-focused guidance on living in Japan and navigating its financial systems, Living in Nihon offers comprehensive resources for foreign residents. For workplace and income guidance that affects your mortgage eligibility, For Work in Japan covers employment topics for international workers.

When it comes to property negotiation strategy, Gaijin Buy House's guide on used condo price negotiation explains how having mortgage pre-approval can significantly strengthen your negotiating position with sellers.

For the most up-to-date bank comparisons and foreigner-specific mortgage guidance, realestate.co.jp's bank lending guide is one of the most thorough independent resources available. Tokyo Portfolio's housing loans for foreigners guide also offers excellent 2025-updated information.

Conclusion

Getting a home loan in Japan as a foreigner is achievable, but it requires careful preparation. Your best starting points are SMBC Trust Bank (Prestia) for its English support and explicit openness to non-PR applicants, and SBI Shinsei Bank if you have a lower income base. Suruga Bank is worth consulting if you want maximum flexibility on loan terms.

The most important factors are: stable employment in Japan, taxable Japanese income, a clean financial record, and — ideally — permanent residency status or a solid path toward it.

For a complete picture of the buying process, start with our Complete Guide to Buying Property in Japan as a Foreigner and explore our Japan Real Estate Market Overview and Trends to understand the broader investment landscape.