As we detail in this article, Basic Requirements for Getting a Mortgage as a Foreigner in Japan, it is possible for a resident foreigner in Japan to get a home mortgage loan, but you have to meet some stringent requirements.
Shinsei Bank is one of the banks that lends to resident foreigners who meet the following main requirements. You, the applicant
- Must be a Japanese citizen or a permanent resident of Japan. If you a non-permanent resident (ie. if you have a working visa), your spouse must be a Japanese citizen or a permanent resident in Japan, and you must appoint your spouse as a guarantor for the mortgage.
- Must have annual pre-tax income for the previous fiscal year of ¥3 million or more.
- You or your family (dependents) must reside in the property subject to the loan. The purpose of the loan must be for residential purposes only.
- The building structure must not be on leased land.
- The total floor area of the property subject must be over 50 square meters, or in the case of apartments, the owned-floor-area must be over 25 square meters.
- For a full list of requirements, please visit their website.
What interest rates are available for home mortgage loans?
If you meet Shinsei Bank’s requirements for their PowerSmart Home Mortage loan products, you can choose from a variable rate, initial fixed-rate, or long-term fixed rate loan.
Please note that what we are summarizing below is only for general reference and is taken from Shinsei’s disclosure documents available on the bank’s website. These rates are as of September 1, 2016. Make sure to check directly with Shinsei, do your due diligence, and read the full disclosure about the different types of mortgages!
Floating Interest Rate Mortgage
If you choose to go with a variable-rate loan, the initial rate is 0.550% per year. This rate will be reviewed semi-annually.
Initial Fixed-Rate Mortgage
If you go with an initial fixed-rate (what is called an ARM [Adjustable Rate Mortgage] in the United States), the interest rate varies from 0.850% for a 1-year fixed-rate loan to 1.100% for a 20-year fixed mortgage.
Long-Term Fixed Rate Mortgage
With this option, your interest rate will be fixed throughout the life of the loan.
- 25-year fixed rate: 1.450% per year
- 30-year fixed rate: 1.700% per year
- 35-year fixed rate: 1.700% per year
Mortgage Calculator
If you meet the eligibility requirements, please use Shinsei’s mortgage calculator to see how much you can borrow.
Here are the figures for a 35-year term loan, as of this article’s post date:
If you have an annual income of ¥3,000,000, you can borrow a maximum of ¥12,000,000
If you have an annual income of ¥4,000,000, you can borrow a maximum of ¥28,000,000
If you have an annual income of ¥5,000,000, you can borrow a maximum of ¥35,000,000
If you have an annual income of ¥6,000,000, you can borrow a maximum of ¥42,000,000
If you have an annual income of ¥7,000,000, you can borrow a maximum of ¥49,000,000
If you have an annual income of ¥8,000,000, you can borrow a maximum of ¥56,000,000
If you have an annual income of ¥9,000,000, you can borrow a maximum of ¥63,000,000
If you have an annual income of ¥10,000,000, you can borrow a maximum of ¥70,000,000
If you have an annual income of ¥11,000,000, you can borrow a maximum of ¥77,000,000
If you have an annual income of ¥12,000,000, you can borrow a maximum of ¥96,000,000
A tip for using Shinsei Bank’s mortgage calculator (scroll to the middle of the page after you click through): Enter your annual gross salary without zeros and select your desired loan term.
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