Can Foreigners Get a Mortgage in Japan?
The 3 Key Hurdles You Need to Know
One of the most common questions from foreign investors interested in Japanese real estate: “Can I get a loan?” The honest answer: it depends—but the conditions are strict. For overseas investors who want to invest without relocating to Japan, the realistic answer is almost always cash purchase only. This article breaks down the three key hurdles.
First, the Good News: Buying Property Has No Restrictions
Japan imposes virtually no restrictions on foreign nationals purchasing real estate, regardless of nationality or residency status. A non-resident living abroad can legally buy and own property in Japan on the same terms as a Japanese citizen—one of the most open systems in the world, and a key reason international capital continues to flow into the Japanese property market.
The challenge is not can foreigners buy? It is “can foreigners get a loan to buy?“
Hurdle 1: “Do You Live in Japan?” — The Residency Requirement
Most Japanese banks require that loan applicants actually reside in Japan—for both home loans and investment property loans. For overseas investors who want to invest without relocating, this alone closes the door at the vast majority of Japanese financial institutions. The bank’s concern is simple: a borrower abroad creates difficulty in contact if repayments fall behind, and managing collateral becomes far more complex.
A small number of products exist for non-residents, but they are rare exceptions.
Hurdle 2: “Do You Have Permanent Residency?” — The Visa Status Requirement
Even for foreigners living in Japan, the next hurdle is permanent residency (eijuken). MUFG, Mizuho, SMBC, and most major city banks explicitly require applicants to be Japanese nationals or permanent residents. Permanent residency requires no renewal and places no restrictions on employment—to a bank, this signals a lower risk of mid-repayment emigration. Without it, applications are often rejected at the front desk.
Some banks do accept applications from foreign residents without permanent residency—SMBC Trust Bank Prestia, Tokyo Star Bank, Suruga Bank, and AEON Bank among them—but Japan residency with a valid visa remains the prerequisite in all cases.
Hurdle 3: Non-Residents Face an Almost Closed Door
For overseas investors who want to invest without relocating, borrowing from a Japanese financial institution is exceptionally difficult. Two exceptions exist:
Exception 1: Tokyo Star Bank “Shōfuku-sei” Real Estate Investment Loan — one of Japan’s only loan products designed for non-resident Taiwan passport holders. Requires annual income of ¥10M+ or net assets of ¥30M+ (details in Part 2’s bank comparison).
Exception 2: Financing via a Japanese Legal Entity — non-residents can sometimes obtain business loans by establishing a Japanese corporation, though setup costs and requirements make this complex (full details in Part 3).
The Three Hurdles at a Glance
| Situation | Access to Financing |
|---|---|
| Living abroad (non-resident) | Very limited. Rare exception products exist |
| Japan resident, permanent residency | Most banks accessible |
| Japan resident, no permanent residency | Limited but real options available |
| No valid Japan residency status | Extremely difficult |
Coming Up — Part 2
Which Banks in Japan Accept Foreign Residents Without Permanent Residency? — A Side-by-Side Comparison
We compare SMBC Trust Bank Prestia, Tokyo Star Bank, Suruga Bank, and AEON Bank—eligibility conditions, loan limits, and language support, all in one table.
Information in this article is current as of May 2026. Lending criteria are subject to change without notice. Please confirm current conditions directly with each financial institution. Real estate investment carries risk and does not guarantee returns.
