In recent years, Japan has made incremental but meaningful strides in recognizing and supporting the rights of LGBT individuals. While same-sex marriage is not yet legally recognized at the national level, more municipalities and prefectures are introducing partnership certificates that acknowledge same-sex relationships. For foreigners in LGBT relationships who wish to purchase a home with their partner, understanding the current landscape of home loans in Japan is essential. This article explores the options, challenges, and practical considerations for foreigners in LGBT relationships seeking a mortgage, offering insights and advice for a smoother path to homeownership regardless of if you and your partner have working visas, PR, and/or Japanese citizenship.
Legal Landscape and Partnership Certificates
As of early 2025, over 300 municipalities in Japan have introduced partnership systems that allow same-sex couples to register their union. While these certificates do not carry the same legal weight as marriage, they are increasingly being recognized by private companies, hospitals, and even some financial institutions.
For foreigner LGBT couples applying for a joint home loan, having a partnership certificate in Japan can be an important asset. Some banks and housing loan providers are beginning to consider registered same-sex partners as co-applicants, similar to legally married couples. However, policies vary widely among lenders, and it’s crucial to confirm each institution’s stance in advance.
Joint Home Loans: What’s Possible?
In Japan, joint home loans allow two people to apply for a mortgage together, and some types of home loans such as pair loans allow couples to combine their incomes to qualify for a higher loan amount. If you would like to learn more, please check out this article: “Joint Home Loan Availability For Foreigners in Japan“. Until recently, this option was limited to legally married couples, but a growing number of financial institutions are expanding eligibility to include same-sex partners with partnership certificates.
Some banks now allow LGBT couples with partnership certificates to apply under either of these structures below, especially a joint debtor mortgage, which is increasingly being offered by inclusive lenders.
Not all banks have adopted inclusive policies. Some may still require one person to act as the sole borrower, limiting loan size and creating potential risks regarding asset ownership.
Available Banks
| Financial Institutions | Available Loan | Required Visa Type |
|---|---|---|
| SMBC PRESTIA | Pair Loan, Joint Mortgage | Permanent Residency |
| SBI SHINSEI BANK | Pair Loan, Joint Mortgage | Permanent Residency |
| SURUGA bank | Pair Loan, Joint Mortgage | Permanent Residency |
| Rakuten Bank | Joint Mortgage | Permanent Residency |
| Mizuho Bank | Pair Loan, Joint Mortgage | Permanent Residency |
| Mitsubishi UFJ | Pair Loan, Joint Mortgage | Permanent Residency |
| Resona Bank | Pair Loan, Joint Mortgage | Permanent Residency |
| Shizuoka Bank | Pair Loan, Joint Mortgage | Permanent Residency |
| Yokohama Bank | Pair Loan, Joint Mortgage | Permanent Residency |
| Sumitomo Mitsui Trust Bank | Pair Loan, Joint Mortgage | Permanent Residency |
| Flat 35 (Japan Housing Finance Agency) | Joint Mortgage | Permanent Residency |
Key Considerations for LGBT Couples
When preparing to apply for a home loan as an LGBT couple in Japan, consider the following:
- Confirm Lender Policy Early: Shortlist banks that accept partnership certificates and allow joint or pair applications. Confirm directly with loan officers.
- Decide on Ownership Structure: Property can be owned jointly in accordance with the shareholding ratio, which is based on each person’s loan amount for a pair loan. Alternatively, you can decide the ownership ratio based on how much each person will actually pay, unless both you and your partner agree to deal with a “gift tax” situation.
- Plan for Life Events: LGBT couples do not yet receive automatic inheritance rights in Japan. Prepare wills, designate life insurance beneficiaries, and set up power of attorney as necessary.
- Tax Implications: Spousal tax deductions are not yet available for LGBT couples in Japan. Individual mortgage tax deductions may be possible if ownership and payment are split like a joint loan.
What If Both Partners Are Foreigners?
If both individuals are non-Japanese, home loan approval becomes more complex:
- Banks require both applicants to have permanent residency.
- Both applicants may face stricter conditions (higher down payments, shorter terms).
Partnership certificates may still be issued depending on the municipality, even for non-Japanese residents, and could help in proving the relationship to lenders.
Inheritance and legal protections remain limited. Drafting a Japanese will, confirming property ownership shares, and naming each other as life insurance beneficiaries are crucial steps.
When One Partner is Japanese and the Other is a Foreigner
This setup is more flexible:
- If the Japanese partner applies as the main borrower, banks are more open.
- Some banks accept joint applications (pair loan) if the foreign partner has permanent residency in Japan and a partnership certificate.
- Joint ownership is possible even if the foreign partner is not on the mortgage, but if the registered owner doesn’t match who is actually paying, the excess share might be treated as a “gift,” and Japanese gift tax could apply.
- Legal protections such as inheritance rights do not apply automatically. Drafting wills and setting up insurance is recommended.
Tax benefits are limited to individual entitlements; LGBT couples cannot access spousal deductions in Japan as of the writing of the article.
Navigating Challenges
Common challenges include inconsistent bank policies, lack of staff training, and legal gaps. LGBT couples should:
- Work with LGBT-friendly real estate agents and legal advisors.
- Use municipalities offering partnership certificates to their full advantage.
- Seek out bilingual or international banks for better support.
Dovetail’s Thoughts
The real estate and finance industries in Japan are slowly adapting to better serve LGBT clients. While full marriage equality has yet to arrive, thoughtful planning, legal documentation, and working with the right professionals can make homeownership a reality for LGBT couples of all backgrounds.
As awareness grows and social norms evolve, we hope to see more inclusive lending policies, tax reforms, and ultimately, full recognition of same-sex partnerships under Japanese law.
For now, we strongly recommend applying for permanent residency as soon as you become eligible.