Getting Financing

Which Japanese Banks Lend to Foreigners to Buy a Home or Investment Property?

In this post we feature three Japanese banks that extend mortgage loans to foreign residents of Japan for purchasing a home or investment property.

  • Prestia SMBC Trust Bank
  • Shinsei Bank
  • Tokyo Star Bank

All three of these banks have English language information available on their mortgage products. However, please be aware that all legal documents, including terms and conditions, will be in Japanese. To the extent that English translations may be provided to you, they are only meant for general guidance purposes.

Below we summarize the following:

  • Permanent Residence requirement, if any
  • Residency requirements
  • Employment and income requirements
  • Loan purpose
  • How much you can borrow
  • Available interest rates
  • Loan terms

In addition, there are age requirements for qualifying for a mortgage loan. In general, you must be at least 20 years old to apply; and be younger than 75 years old (sometimes 80-years-old) at the time of repayment. Please check the specific requirement directly with the lender.

You will also be required to qualify for and enroll in group life insurance.

Real Estate Japan provides this summarized information for general information purposes only. Please consult directly with the lender for complete and up-to-date information about their mortgage loan products.

Banks are not listed in any particular order. Information below was compiled in September 2018.

1. Prestia SMBC Trust Bank

English Language Inquiries & Consultation? Yes

Official Website: Prestia SMBC Trust Bank Housing Loans

Telephone: 0120-004-847


Prestia SMBC Home Mortgage Loans

Permanent Residency required? No

Residency requirement? 

Yes. Applicants must be citizens or residents of Japan.

Income requirement for a home loan

Applicants must have a stable source of income and a minimum annual income of ¥5 million

Loans available for purchasing a primary residence? Yes

Loans available for refinancing? Yes

How much can you borrow? 

  • Between ¥10 million and ¥500 million (in increments of ¥100,000). The loan amount must be less than or equal to the LTV% (Loan-to-Value) ratios below, where “value” is the purchase price of the collateral (or the appraised value of the collateral as established by SMBC Trust Bank in case of refinance).
  • LTV for purchasing a home: Maximum LTV of 100%
  • LTV for refinancing: Maximum LTV of 150%
  • For purchasing a property, the property value must be at least ¥10 million

Interest rates for home mortgage loans:

  • Between 0.80% and 1.05% per annum for fixed rate loans (September 2018)
  • For adjustable rate loans, initial interest rates between 0.47% and 0.92% (September 2018)

Loan terms for home loan: 1 to 30 years


Prestia SMBC Property Investment Property Loans

Loans available for investment property? Yes

Permanent Residency required? No

Residency requirement? 

Yes. Applicants must be citizens or residents of Japan.

Income requirement for an investment loan

Applicants must have a stable source of income and a minimum annual income of ¥7 million

Loan purpose

  • Funds can be used for the purchase or construction of investment property, including the refinance of investment property loans from other banks or companies.

How much can you borrow for an investment property?

  • Between ¥5 million and ¥100 million (in increments of ¥100,000). The loan amount must be less than or equal to 80% of the purchase price or the assessed value of the collateral (as established by SMBC Trust Bank), whichever is lower.
  • In case of property purchase, property price must be at least ¥10 million yen.
  • The LTV will depend on annual income, property and other factors.

Interest rates for property investment loans

  • Between 1.73% an 2.00% per annum

Loan terms for investment property loans: 1 to 30 years

Areas for which investment property loans are available

  • Tokyo
  • Kanagawa
  • Saitama
  • Chiba

2. Shinsei Bank

English Language Inquiries & Consultation? Yes

Official Website: Shinsei Bank PowerSmart Home Mortgage

Telephone: 0120-456-515


Permanent Residency required? No. However,

  • For applicants who do not have Permanent Residency, the applicant’s spouse must be a Japanese citizen or a permanent resident of Japan, and the spouse must be appointed as a guarantor for the mortgage. In case you appoint your spouse as guarantor, your spouse does not have to have a stable income.

Residency requirement? 

  • Yes. You must be a resident of Japan with a contact phone number to confirm the details of your account application form. The “contact phone number” must be your own phone number. The phone number at your workplace or someone else’s phone number is not acceptable.
  • The “Period of Stay” on your Residence Card must be longer than one year.
  • You must have an existing PowerFlex account with Shinsei Bank or can open a PowerFlex account concurrently with the loan application.

Income requirement for a home loan

  • You must be continuously employed for 2 years or longer, as a full time or contracted employee, with an annual income of 3 million yen or more (before tax) for the previous fiscal year.
  • If self-employed, you must have been engaged in business for 2 years or longer and have an average 2-year profit of ¥3 million or more.

Loan Purpose

Shinsei PowerSmart Home Mortgages are only available for financing a residence for the applicant or family members of the applicant. Loans are limited to the following purposes:

To purchase a detached house or an apartment, including re-sale properties.

・ To construct a new house. Drawdown of the loan only to be executed in lump-sum upon completion of the house.
・ To refinance an existing home mortgage from another financial institution. Partial refinance not accepted.
・ To renovate a detached house or an apartment to be purchased or refinanced. Funds for renovation are not available.

The purchase must also satisfy the below conditions:

・ Floor area to be at least 50 square meters (at least 30-sqm in case of apartments)
・ Residential property or a residence with a common area for an office or a shop (in such case, residential space must be over 50% of the entire floor area of the property and must be occupied by the applicant)

The loan may not be used for land only purchases (exception if applicant already owns the house which is built on the land to be purchased).

How much can you borrow?

  • Loan amount must be ¥5 million or more and up to ¥100 million in units of ¥100,000 yen.
  • However, the loan amount will be limited to 100% of the appraised value of the property assessed by the bank appointed appraisal agencies. To ensure a sustainable repayment plan for all customers, the bank will determine the maximum loan amount according to the applicant’s annual income and liability details.

Interest rates for home mortgage loans

  • Between 1.800% and 2.050% per annum for long-term fixed-rate loans (September 2018)
  • For adjustable rate loans, initial interest rats between 0.600% and 1.650% (September 2018)

Loan terms for home loans

Loan term must be between 5 and 35 years (in units of 1 year) and for Long-Term Fixed Interest Rates, the loan term must be between 21 and 35 years (in units of 1 year).

Shinsei Investment & Finance (not Shinsei Bank) also offers a product for investment loans, which we will cover in a separate post.


3. Tokyo Star Bank

English Language Inquiries & Consultation? Limited

Official website: Tokyo Star Bank (in Japanese)

English translation of Star One Housing Loan product (English PDF)



Permanent Residency required? Yes, but there are exceptions, as explained below in the residency section.

Residency requirement

You may also qualify to apply without Permanent Residence status if you fulfill the following conditions:

  • Currently residing in Japan
  • Capable of understanding contract provisions in Japanese, including cases in which understanding is possible with the assistance of a spouse or legal expert.

Income requirement for a home loan

Official documentation showing stable income for at least one year as a full-time employee or at least two years as a corporate officer or self-employed person. Income requirement not specified.

Loan purpose

The funds can be used as follows for the applicant or a family member who is living with the applicant.

  • Construction of or improvements to a residence, including a residence attached to a store
  • Purchase of residence, including an apartment, built for sale
  • Purchase of an existing residence, including an apartment)

Funds can be used for re-payment of an existing housing loan, excluding loans from Tokyo Star Bank.

Cannot be used for the purchase of land only.

How much can you borrow?

Loans from ¥5 million up to ¥100 million (in units of 100,000 yen) are available. However, if the funds are used for purchase or construction, the loan amount will be limited to 90% of the purchase price of the property covered by the loan.

In addition, there may be limitations based on annual income, the collateral valuation by the bank, and so on.

Interest rates for home loans

Please contact the Tokyo Star bank directly for available interest rates.

Loans Terms for Home Loan: 1 year to 35 years in increments of one year.

FAQs About Buying a Home in Japan

Can a foreigner buy property in Japan?

Yes. You can buy property in Japan regardless of your nationality or country of origin. There are also no residency requirements for buying real estate in Japan. Securing financing as a resident foreigner is more complicated. For info on financing, please see “Basic Requirements for Getting a Mortgage as a Foreigner in Japan“.

What is the process for buying a home in Japan?

Please see our step-by-step guide: Guide to Buying a Home in Japan

See how much you can borrow and your monthly payments in yen: Yen Mortgage Loan Calculator

For information about purchase and brokerage fees: Breakdown of real estate purchase fees and taxes in Japan

Need to know: Earthquake building codes and technology in Japan