While there are no restrictions on foreign ownership of property in Japan, securing finance can be challenging.

Three Japanese banks — Prestia (formerly Citibank Japan), Shinsei Bank, and Suruga Bank — offer English-language information on their websites and are aimed at foreigners living in Japan. Loan terms and income/employment eligibility requirements differ depending on the bank, but note that Shinsei requires applicants to have an existing account with the bank or to open one when they apply for a loan.

Do I need to speak Japanese?

While the banks may provide English translations of loan documents, the legally binding contracts for all banks will be in Japanese. Suruga bank requires applicants to be able to understand Japanese, and may decline applications if they feel the applicant's level of Japanese comprehension is inadequate. Prestia does not require applicants to speak Japanese to apply for a loan.

Do I have to be a permanent resident of Japan?

The majority of Japanese banks require foreign borrowers to be either permanent residents, or married to Japanese nationals. For reference, permanent resident status may be granted to a foreigner after ten or more years of working and living in Japan. Prestia lends to foreigners who do not have permanent residency, but they must still be citizens or residents of Japan. Shinsei also lends to foreigners who are not permanent residents, but they must have a spouse who is Japanese or a permanent resident. Suruga requires foreign applicants to be permanent residents.

Foreign borrowers may also need to provide tax receipts of up to three years' work history in Japan. And depending on their financial situation, if they own property offshore, they may be able to secure lending against these offshore assets.

How much can I borrow?

The maximum amount you can borrow from all three banks is 100 million yen, and Prestia stipulates that the property purchase price must be above 10 million yen.

Can I get a loan for an investment property?

Prestia grants loans for the purchase or construction of investment properties. Suruga bank, on the other hand, only grant loans for homes that the applicant or their family will live in, renovations, roll-over of housing loans already in use, and other expenses related to new constructions or changes of residence. Shinsei also loans for homes that the applicant or their family will live in, construction of a new house on land already owned, or the refinancing of a mortgage from another financial institution.

More information about Prestia loans

More information about Suruga Bank loans

More information about Shinsei Bank home loans

For foreign borrowers living in Australia

If you are living in Australia, Japanese yen loans that use Australian property as security are available from most major Australian banks.

Sources: nisekoproperty.com, realestate.co.jp

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Read also:

• Introduction to Japan Real Estate
• Buying property in Japan
• Japan property taxes
• Japanese real estate glossary