Buying a home in Japan is a dream for many foreigners living and working here. Although it is not difficult to buy a property in Japan as a foreigner, navigating mortgage financing can be a complex process, especially since the conditions differ greatly depending on whether you hold a working visa or permanent residency (PR), along with which banks you talk to. The good news is that more banks in Japan are gradually opening up to foreign applicants. But which bank should you choose—and what can you expect?
In this article, we’ll break down which banks foreigners can work with, categorize them by visa type, and highlight key differences in interest rates, down payments, borrowing terms, and language requirements to help you compare and find the right fit for your situation. If you want to know “How to get financing from banks in Japan as a foreigner”, please check out this article.
For Foreigners with a Working Visa
If you hold a working visa, your options are more limited compared to PR holders. Banks tend to see more risk in lending to individuals without long-term residency, so conditions are typically stricter.
Available Banks:
Key Features and Considerations:
| Bank Name | Language Support | Down Payment | Loan Term |
|---|---|---|---|
| SMBC Prestia | English available | 10–30% | up to 35 years |
| Suruga Bank | Japanese only | Around 20% | up to 50 years |
| Rakuten Bank | Japanese only | 30% | Up to 25 years |
| Aeon Bank | Japanese only | 20% | Up to 15 years |
Pros:
- Accessible to foreigners without PR.
- Some flexibility in property location and type.
Cons:
- Higher interest rates than PR holders (sometimes below 1% as of March 2025).
- Shorter borrowing terms (potentially as short as 15 years).
- Down payments are almost always required.
- Japanese communication skills are usually necessary. Most banks expect you to complete the application in Japanese.
For Foreigners with Permanent Residency (PR)
If you have PR status, your range of choices increases dramatically. Banks tend to treat PR holders similarly to Japanese citizens, which means better terms and a smoother application process.
Available Banks:
- SMBC Prestia
- Suruga Bank
- Rakuten Bank
- Aeon Bank
- SBI Shinsei Bank
- China Bank
- Tokyo Star Bank
- Mizuho Bank
- Mitsubishi UFJ
- SMBC
- Resona Bank
- Shizuoka Bank
- Yokohama Bank
- Sumitomo Mitsui Trust Bank
- Chiba Bank
- UI Bank
- Chuo Labor Bank
Key Features and Considerations:
| Bank Name | Language Support | Down Payment | Loan Term |
|---|---|---|---|
| SBI Shinsei Bank | Japanese only | Possible 0% | Up to 35 years |
| Tokyo Star Bank | Japanese only | Possible 0% | Up to 35 years |
| Mizuho Bank | Japanese only | Possible 0% | Up to 35 years |
| Mitsubishi UFJ (MUFG) | Japanese only | Possible 0% | Up to 35 years |
| SMBC (Sumitomo Mitsui) | Japanese only | Possible 0% | Up to 35 years |
| Resona Bank | Japanese only | Possible 0% | Up to 35 years |
| SMBC Prestia | English available | Possible 0% | Up to 35 years |
| Sumitomo Mitsui Trust | Japanese only | Possible 0% | Up to 40 years |
| Suruga Bank | Japanese only | Possible 0% | Up to 50 years |
| Rakuten Bank | Japanese only | 30% | Up to 25 years |
| Aeon Bank | Japanese only | 20% | Up to 15 years |
| China Bank | Chinese available | 30% | Up to 30 years |
| Chuo Labor Bank | Japanese only | Possible 0% | Up to 40 years |
| Regional Banks | Japanese only | Possible 0% | Up to 50 years |
Pros:
- Lower interest rates—some starting under 1%.
- Longer repayment terms, up to 35 or even 50 years.
- In some cases, no down payment is required, especially if the property value is not too high.
- More likely to approve older buildings or unique property types.
Cons:
- Many banks still require Japanese communication.
- Conditions vary depending on employment stability, income level, and credit history in Japan.
- Some local banks may only lend for properties within their service area.
Key Comparison: Working Visa vs. PR Holder
| Feature | Working Visa | Permanent Resident |
|---|---|---|
| Bank Options | Limited (4 main banks) | Extensive (15+, including major banks) |
| Interest Rates | Higher (1.2%~) | Lower (0.3%~) |
| Loan Terms | Shorter | Longer |
| Down Payment | Required (10–30%) | Possibly as little as 0% |
| Language Support | Rare, mostly Japanese required | Slightly better, but still limited |
| Application Process | Stricter screening | More flexible and similar to citizens |
Tips for Choosing the Right Bank
- Language barrier? → Consider SMBC Prestia which offers English-language support and international-friendly services.
- Need lower rates? → PR holders should compare MUFG, Mizuho, and SMBC for the most competitive interest rates.
- Buying in the countryside or small cities? → Local banks like Chiba Bank, Shizuoka Bank, and Yokohama Bank may be more familiar with properties in those areas.
- No PR yet? → Focus on SMBC Prestia or Suruga Bank, and prepare for higher down payments and stricter screening.
- Looking for flexibility? → Suruga Bank and Resona Bank are often praised for their more lenient terms and case-by-case assessments.
Dovetail’s Thoughts
Buying a home often requires comparing many suitable financing options. While home loan options in Japan are expanding for foreigners, the range and quality of options still vary widely depending on your visa status. Foreigners with permanent residency enjoy nearly the same access as Japanese citizens, while those on working visas must contend with stricter terms, fewer banks, and higher barriers to entry.
Before applying, it’s important to:
- Prepare all required documents (income statements, tax certificates, residence cards, etc.)
- Check your credit history (in Japan)
- Work closely with a trustworthy bilingual agent if Japanese fluency is a concern
The key is preparation and understanding your eligibility. With the right bank and support from your agent, owning a home in Japan can be a realistic and rewarding goal—even for foreigners who want to enjoy Japan’s super low interest rates, at least for now.