Can Foreigners Get a Mortgage in Japan?

Quick Answer: Yes — foreigners can get a mortgage in Japan, and there's no law stopping you from owning property or borrowing. In practice, permanent residency (PR) is the biggest lever: with PR you get near the same access as a Japanese national. Without PR it's still possible — through a narrower set of banks, usually with a larger down payment (often 20–50%), stable income, and a few years of work history. A Japanese or PR spouse makes it much easier.

This is the first guide in our series on buying a home in Japan as a foreigner or couple. Before you fall in love with a place, it's worth knowing what a bank will actually lend you — because for foreigners, the mortgage is usually the real gatekeeper, not the property itself.

This is educational information, not financial or legal advice. Lending rules, rates, and thresholds vary by bank and change over time — confirm current terms directly with the lender or a qualified professional.

Can foreigners legally get a home loan in Japan?

Yes. There is no legal restriction on foreigners owning property or taking out a mortgage in Japan — no citizenship requirement, no special permit to buy a home. Land and buildings can be freely owned by non-Japanese.

The real question isn't legal, it's commercial: will a bank lend to you, and on what terms? A mortgage in Japan is typically a 20–35 year commitment, so lenders want confidence you'll stay, keep earning, and repay. Your residency status is how they judge that — which is why two foreigners with identical salaries can get very different answers.

Does permanent residency really decide it?

Largely, yes — permanent residency (永住権) is the single biggest factor.

PR itself usually takes around 10 years of residence to qualify for (fewer if you hold Highly-Skilled Professional status and accumulate enough points), so many foreign buyers are applying without it — which makes knowing the non-PR lenders essential.

Which banks actually lend to foreigners without PR?

Several banks lend to long-term foreign residents who don't yet have PR, and some offer English-language support. The names that come up most consistently are SMBC Trust Bank (PRESTIA), SBI Shinsei Bank, Tokyo Star Bank, Suruga Bank, AEON Bank, ORIX Bank, and Resona.

Typical expectations for a non-PR applicant are along these lines (they vary by bank, so treat them as a rough bar, not a rule):

Because these thresholds move and each bank weighs them differently, it's normal to apply to more than one lender and compare offers.

What if your partner is Japanese or a permanent resident?

This is often the game-changer. If your spouse is a Japanese national or a permanent resident, they can typically act as the main borrower, co-borrower, or guarantor — which can unlock the mainstream banks, better rates, and a smaller deposit, even if you personally don't have PR.

Couples also have two structures that can raise how much you borrow together — a pair loan (ペアローン), where each partner takes their own loan on the same property, and income combination (収入合算), where one partner's income is added to the other's application. Both increase borrowing power but also share the risk across two people and, potentially, two nationalities — which matters if one of you might leave Japan. We'll cover how couples should structure this in a dedicated guide; for now, just know that a Japanese or PR partner meaningfully widens your options.

What do lenders actually check?

Beyond residency, a Japanese mortgage assessment usually weighs:

What about Flat 35 and interest rates in 2026?

Flat 35 is the popular long-term fixed-rate loan backed by the Japan Housing Finance Agency (JHF). It's attractive for rate certainty — but for foreigners, the official eligibility is strict: applicants must be Japanese nationals, permanent residents, or special permanent residents. JHF's own guidance states that a non-PR foreigner is not eligible, and that if PR status is found to be missing after the loan is made, the full balance can be called in. Some third-party sites claim Flat 35 is open to non-PR foreigners "on softer terms" — that contradicts the official JHF position, so verify directly with JHF before relying on it.

On rates, 2026 looks different from the ultra-low 2010s. The Bank of Japan ended its negative-rate policy in 2024 and has since lifted its policy rate to around 0.5%, which has nudged variable mortgage rates up modestly. As a rough picture for 2026: variable rates at many banks sit around or under ~1% (online banks lower, megabanks a little higher), while long-term fixed rates like Flat 35 run higher than that. Variable is cheaper today but can rise; fixed costs more but locks your payment. Because rates move monthly, check the current figure with each lender rather than trusting any single quoted number.

Can foreigners claim the mortgage tax deduction?

Yes — the mortgage tax deduction (住宅ローン控除) is available to foreign residents too, as long as you're a resident taxpayer who actually lives in the home. It's one of Japan's most valuable homeowner breaks: it credits 0.7% of your year-end loan balance against your income tax (and some resident tax) each year, for up to 13 years on qualifying new homes.

Key 2026 conditions to be aware of:

One cross-border note: this deduction is for residents. If you're buying from outside Japan as a non-resident, a separate reporting rule applies — from April 2026, non-resident buyers must file a Bank of Japan report (FEFTA Form 22) within 20 days of acquisition.

How this fits your FI plan

A mortgage is the largest single financial commitment most couples make — and whether it helps or delays your financial independence depends entirely on your numbers. Before committing, weigh buying against renting-and-investing with our Buy vs Rent in Japan guide and run your own figures in the Buy vs Rent calculator. Then see how a housing decision reshapes your timeline in the PlanTogetherFI calculator and our FIRE in Japan guide.

PlanTogetherFI is for educational planning only. It is not financial, legal, or tax advice. Lending criteria, interest rates, and tax thresholds depend on your situation and change over time — confirm current terms with the lender, the Japan Housing Finance Agency, the NTA, or a qualified professional.

Frequently Asked Questions

Can a foreigner get a mortgage in Japan without permanent residency?

Yes, but from a narrower set of banks and usually with a larger down payment (often 20–50%), stable full-time employment, a few years of residence, and income generally above ¥5 million. Lenders such as SMBC Trust (PRESTIA), SBI Shinsei, Tokyo Star, and others are known to consider non-PR applicants.

How much deposit does a foreigner need to buy a house in Japan?

With permanent residency or a Japanese/PR spouse, you may finance most of the price with a modest deposit. Without PR, banks commonly ask for 20–50% down. The exact figure depends on the lender, your income, visa, and the property.

Can foreigners use Flat 35?

Officially, only if they are Japanese nationals, permanent residents, or special permanent residents. The Japan Housing Finance Agency's guidance excludes non-PR foreigners, and the full loan can be called in if PR status is later found to be missing. Verify current rules directly with JHF.

Does having a Japanese spouse make it easier to get a mortgage?

Significantly. A Japanese national or permanent-resident spouse can act as the main borrower, co-borrower, or guarantor, which can open the mainstream banks, better rates, and a smaller deposit — even if you personally don't hold PR.

Can foreigners claim Japan's mortgage tax deduction (住宅ローン控除)?

Yes, if you're a resident taxpayer living in the home and meet the conditions — total income of ¥20 million or less, a floor area of at least 50㎡ (40㎡ if income is ¥10 million or under), a loan term of at least 10 years, and, for new builds, the required energy-efficiency standard.

Sources and further reading

Details reflect rules and market conditions as of mid-2026 and can change. Always confirm your own eligibility, rates, and tax treatment with the lender, JHF, the NTA, or a qualified professional.