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Japan – Property Financing

Mortgages for Foreign Nationals in Japan

Japan, a country known for its rich culture, advanced technology, and picturesque landscapes, attracts foreigners interested in owning property. If you’re considering purchasing real estate in Japan, you might wonder about mortgage options, local lenders, deposit requirements, and the responsibilities that come with property ownership. In this detailed guide, we will provide insights into these aspects of buying property in Japan.

Availability of Mortgages for Foreign Nationals

Foreign nationals in Japan can access mortgage options, but several factors may affect eligibility:

  • Residency Status: Your residency status in Japan can impact the mortgage terms available to you. While residents may have more favorable options, non-residents can also secure mortgages.
  • Income and Employment: Lenders will assess your financial stability, including your income and employment status, to determine your eligibility for a mortgage.
  • Loan-to-Value (LTV) Ratio: The LTV ratio represents the loan amount as a percentage of the property’s value. In Japan, lenders often finance up to 70% to 80% of the property’s value, so you’ll need to cover the remaining portion as a deposit.

It’s advisable to consult with local banks, financial institutions, or mortgage brokers specializing in assisting foreign nationals in Japan to explore your mortgage options.

Local Lenders Providing Mortgages

Japan’s banking sector offers mortgage services to both residents and non-residents. Here are some prominent local lenders providing mortgages:

These lenders offer various mortgage products with competitive interest rates and flexible terms. It’s essential to research multiple options, compare rates, and consider seeking pre-approval to better understand your mortgage eligibility.

Deposit Requirements for Property Purchases

When buying property in Japan, you’ll be required to provide a deposit as a percentage of the property’s purchase price. The deposit amount is influenced by various factors:


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  • Property Value: Typically, the deposit requirement ranges from 10% to 20% of the property’s price. More expensive properties may require a higher deposit.
  • Mortgage Type: The type of mortgage you choose can impact the deposit amount. Different mortgage products may have varying deposit percentages.
  • Lender’s Policies: Each lender may have its policies regarding deposit requirements. It’s important to clarify this with your chosen lender.

Understanding the deposit requirements is crucial for budgeting your property purchase in Japan.

Responsibilities for Property Owners

Upon becoming a property owner in Japan, you will assume various responsibilities related to property ownership:

  • Property Taxes: Property owners are responsible for paying property taxes, including the annual fixed-asset tax and city planning tax, which are calculated based on the property’s assessed value.
  • Maintenance and Upkeep: You must maintain your property in good condition, which includes necessary repairs, regular maintenance, and adherence to local regulations.
  • Utilities: Property owners are responsible for utility bills, such as water, electricity, and gas.
  • Mortgage Repayment: If you have obtained a mortgage, you are responsible for making regular mortgage payments as agreed upon with your lender.

Additionally, property owners should be aware of their rights and obligations under Japanese property laws, including regulations related to property use, renovations, and more. Consulting with legal professionals and property management experts can help ensure compliance with all local regulations.

For more information on mortgages and property purchase in Japan, you can visit the official websites of Sumitomo Mitsui Banking Corporation (SMBC), Mizuho Financial Group, MUFG Bank (Mitsubishi UFJ Financial Group), and Resona Bank.

In conclusion, purchasing property in Japan as a foreign national is achievable, with various mortgage options available from local lenders. Understanding eligibility criteria, deposit requirements, and property ownership responsibilities is essential for a successful and smooth property purchase experience in this captivating country.


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