Japan’s real estate market is gaining traction with foreign buyers, thanks to its political stability, low interest rates, and relatively affordable prices compared to major international cities. Add to that the global city appeal of Tokyo, Osaka, Kyoto, and Fukuoka, and it’s easy to see why international interest is growing.
However, for those without a visa or Japanese residency, securing financing can be challenging. Traditional Japanese banks often prioritize residents with local income. That said, an increasing number of international and specialized financial institutions are stepping in to support overseas investors.
In this article, we’ll walk you through how non-residents can finance property in Japan, from which banks to consider to how to prepare documents and structure your loan application.
Key Challenges for Non-Residents
Japan’s mortgage system is primarily designed for domestic borrowers. As a result:
- Most banks require residency in Japan.
- Income earned in Japan is often necessary (meaning you must pay Japanese income tax).
- Legal and financial documents are usually in Japanese.
Still, there are exceptions. A few banks and lenders cater specifically to international investors, offering loans that accept foreign income, English-language support, and more flexible requirements.
Banks Offering Financing to Non-Residents
Below is a list of financial institutions that provide mortgage loans to overseas buyers:
1. United Overseas Bank (UOB) – Singapore
- Eligible Borrowers: Singaporeans and foreigners (excluding Japanese citizens or Japanese tax-paying residents).
- Property Type: Freehold condos/apartments in Tokyo, Osaka, Kyoto, Fukuoka, and Yokohama.
- Loan Amount: Up to 70% of property value.
- Term: Up to 30 years.
- Requirements: Stable income, good credit, documents in English.
- Highlight: Tailored specifically for Japan real estate.
2. Tokyo Star Bank
- Eligible Borrowers: Taiwan and Hong Kong residents, including those without a Japanese visa.
- Purpose: Investment or residential use.
- Loan Amount: Up to 70% of property value.
- Term: 25–30 years.
- Language Support: English.
- Down Payment: Usually 30% or more.
3. Mega International Commercial Bank (Taiwan)
- Eligible Borrowers: Taiwan and Hong Kong residents, including those without aa Japanese visa.
- Requirements: Tax returns, proof of income, passport, and Alien Resident Certificate (if available).
- Approval: Based on financial strength and assets.
3. Shinsei Investment & Finance (Hong Kong)
- Eligible Borrowers: Hong Kong residents with either a Hong Kong or Japanese passport.
- Locations: Tokyo (23 wards), Osaka, Nagoya.
- Loan Amount: ¥10 million to ¥500 million.
- Term: Up to 20 years.
- Requirements: Annual income over ¥8 million and at least 2 years of employment.
5. ORIX Asia Limited (Hong Kong)
- Eligible Borrowers: Hong Kong residents or companies.
- Locations: Tokyo and Osaka.
- Loan Amount: Up to 70% of purchase price or appraised value.
- Term: Up to 15 years.
- Highlight: Corporate ownership option available.
6. Bank of China (BOC)
- Eligible Borrowers: Primarily Chinese nationals; others considered case by case.
- Down Payment: Typically 50%.
- Term: Up to 15 years.
- Note: Requires local bank account and documentation.
7. Sumitomo Mitsui Trust Bank (via corporate setup)
- Eligibility: Non-residents through a Japanese company (GK or KK).
- Structure: Corporate borrower; must have a local property and bank account.
- Terms: Negotiable depending on company profile.
- Use Case: Ideal for investment properties.
Typical Loan Structures
While specific terms vary by lender, here’s what non-residents can generally expect:
- Loan-to-Value (LTV): 50% to 70%
- Loan Term: 15 to 30 years
- Interest Rate: Typically 2.0% to 4.0% (fixed or variable)
- Collateral: The property itself
- Currency: Japanese Yen
Required Documents
You’ll typically need to prepare the following:
- Passport
- Proof of income (tax returns, payslips)
- Recent bank statements
- Credit report from your home country
- Property details (appraisal, sales contract)
- Company documents (if using a Japanese entity)
Note: All non-Japanese documents must be translated into English, Chinese, or Japanese, depending on the bank’s preference.
Using a Japanese Corporation to Improve Eligibility
Setting up a local company (GK or KK) in Japan is a common strategy among serious investors. Benefits include:
- Establishing a credit history in Japan
- Separating investment from personal assets
- Accessing corporate loan products with potentially better terms
This approach requires proper registration, a local office address, and annual corporate filings.
Tips for a Smooth Application
- Work with English-speaking real estate agents: Property details must often be submitted in English.
- Get pre-approved: Some banks offer pre-screening based on documents.
- Expect high down payments: Usually between 30%–50%.
- Maintain strong financials: Banks prioritize financial stability.
- Plan for taxes: Consult a tax expert about potential cross-border complications.
Dovetail’s Thoughts
Purchasing property in Japan as a non-resident can be incredibly rewarding—especially if you have a deep connection with the country. However, you should be prepared for:
- Higher equity requirements
- Higher interest rates
- A more rigorous and slower approval process
- Extensive documentation
That said, with the right lender, an experienced advisor, and a trustworthy bilingual agent, financing your dream home—or investment—in Japan is absolutely achievable, even without residency.