Loans to Buy Property in Japan from Overseas: Through Shinsei Investment & Finance

One of the questions we most frequently receive at Real Estate Japan is whether it is possible to get a property loan from a Japanese bank as a non-resident foreigner.

We’ve consistently answered this question by saying that it is almost impossible for an individual foreigner living outside Japan to get local financing to buy properties in Japan. The reason for this is when extending a loan, generally, lenders prefer to be in the same jurisdiction as both the property and the borrower in case foreclosure on the loan and enforcement of the mortgage becomes necessary.

So it may be of interest to our readers that we’re able to modify the statement above to say that it is now possible to apply for a property loan as an overseas investor as long as you meet certain eligibility requirements.

Loans for Overseas Property Investors through Shinsei Investment & Finance

Shinsei Investment & Finance (SIF) now offers a mortgage product for a joint-stock company or limited liability company established in Japan for the purpose of purchasing real estate in Japan.

The key eligibility criteria is that the loan application must be submitted by a joint-stock or limited liability company that you establish in Japan for the express purpose of buying Japanese real estate. You do not have to have an already-established company prior to applying for a mortgage with SIF. Corporate establishment can be done after you have identified a target property and submitted a loan application.

In any event, and as is the case anywhere in the world, it is generally considered prudent to conduct investment activities through a company in order to limit the potential personal liability. Corporate ownership also makes joint ownership with investment partners possible and makes it easier to transfer partial ownership.


Who is eligible to apply for this mortgage loan product through SIF?

  • A joint-stock company or limited liability company established in Japan for the purpose of purchasing a property.
  • The applicant must disclose information of the Representative Director(s) and investors with 25% or higher stake in the company including name, date of birth (date of establishment) and registered address.
  • The Representative Director or appointed manager should have the ability to communicate and understand agreement details in Japanese or English.
  • The company will hold a Japan domestic corporate bank account for repayments in Japan.
  • The applicant may be asked to satisfy other conditions and requirements specified by SIF.

Terms & Conditions

Loan Purpose

The purpose of the loan will be to purchase real estate in Japan.

Loan Amount

The loan amount may be up to JPY 500MM per property and up to JPY 1,000MM per borrower; and up to 75% of the SIF’s assessed value of the property and up to 100% of the sales and purchase price.

Lease Terms (Number of Payments)

One to 25 years (12 to 300 payments)

Interest Rate

Variable rate (2.80% to 3.80%) per annum.

The interest rate will be reviewed every April 1st and October 1st and re-applied from the following June and November.

Repayment Method

  • Equal payments with interest on a monthly basis (including balloon payment)
  • Monthly payment is due 14th of each month (next business day if the 14th is a holiday)
  • Payments must be made by automatic bank transfer from the corporate bank

Loan Origination Fee

1.00% to 2.00% of the loan amount plus consumption tax.

Other government registration charges, legal fees, stamp duty, etc. are payable by the borrower.

Early Re-Payment Penalty

1.00% to 3.00% of the pre-payment principal amount, in part or in full.


In principle, it is not necessary to have a guarantor but in some cases, the bank may determine that a guarantor is necessary.


  • First mortgage right will be created on the collateral property financed by the loan.
  • Collateral properties must be located in Tokyo or surrounding other major cities (central Osaka, Nagoya and Fukuoka).
  • Fire insurance policy covering the collateral property is mandatory and first policy claim right must be granted to SIF

Actual APR

The actual annual percentage rate will not exceed 15.00%.

Late Payment Penalty

In case of late payment, a penalty of 19.90% (pro-rated on a 365-day per year basis) will be charged.

Application Process

There are nine main steps in the application process.

  1.         Property selection
  2.         Loan application
  3.         Preparation for corporate establishment
  4.         Credit assessment
  5.         Approval
  6.         Corporate establishment
  7.         Account opening
  8.         Mortgage agreement formalities
  9.         Loan drawdown

Please be sure to complete corporate establishment and bank account opening two days prior to mortgage agreement formalities.

The SIF will assess your creditworthiness upon receiving your application and supporting documents.

Documents required for loan application

In addition to the actual loan application (for a mortgage loan for overseas investors), Agreement on Handling of Personal Information, and Agreement on Anti-Social Forces, you will need to supply the following documentation as part of the loan application. Depending on your individual circumstances, SIF may also require you to provide additional documents. Also note that the submitted documents will not be returned, regardless of whether the loan is approved.

ID of Company Representative

(1)  Copy of passport

IDs of all substantial shareholders/Those with company control

(2)  Copy of passports (not necessary if company representative is the sole person applicable in the application)

Documents for new corporations

(3)  Budget & mortgage re-payment plan (using format provided by SIF)

(4)  Articles of Incorporation (Draft)

Property information

(5)  Copy of Purchase Contract and Copy of Explanation of Important Matters

(6)  Property pamphlet (document showing floor plan at time of sub-division)

(7)  Copy of Lease Agreement or rental advertisement if currently vacant

Documents required for mortgage closing

You will have to provide the following documents to close the loan:

Certificate of Registered Corporate Seal

Two original copies of your company’s registered corporate seal to the closing: Representative Director’s seal (registered seal) and company stamp (rubber stamp with company name address, and name of representative director).

Certificate of All Corporate Registered Matters

One original copy.

ID of Company Representative

Your company representative’s passport and official address proof.

Stamp Duty

Please bring one original Japanese Stamp Duty, based on the loan amount. The following Stamp Duty amounts are accurate as of June 1, 2018:

  • JPY 10,000 stamp Loan value of JPY 10MM and under
  • JPY 20,000 stamp Loan value over JPY 10MM ~ JPY 50MM and under
  • JPY 60,000 stamp Loan value over JPY 50MM ~ JPY 100 MM and under
  • JPY 100,000 stamp Loan value over JPY 100MM ~ JPY 500MM and under
  • JPY 200,000 stamp over JPY 500MM ~ JPY 1,000MM and under

For more information

For more information, please contact:

Shinsei Investment & Finance Limited

English: 03-6859-9282

Sumitomo Fudosan Akihabara Building, 3-12-8 Sotokanda, Chiyoda-ku, Tokyo, Japan 101-0021

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