Home Loan for Foreigners in Japan 【2026 — Can You Get One Without Permanent Residency?】
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📋 Contents
A common question among foreign residents in Japan is: "Can I get a home loan without permanent residency?" The short answer is: it is possible in some cases, but your options and loan conditions differ significantly depending on whether you hold permanent residency. This guide covers Flat 35 requirements, banks that may accept non-permanent residents, key audit points, required documents, and risks when returning to your home country.
① How Permanent Residency Changes Your Options
Most Japanese financial institutions require either Japanese citizenship or a permanent residence permit for a home loan application. Since a mortgage is a long-term contract (typically up to 35 years, and up to 40–50 years with some products), lenders assess risks related to the borrower potentially returning abroad.
| Item | With Permanent Residency | Without Permanent Residency |
|---|---|---|
| Flat 35 | Available | Not available |
| Major banks (standard products) | Most accept applications | Most reject or impose strict conditions |
| Some online/trust banks | Available | Possible with certain conditions |
| Tokyo Star Bank / Suruga Bank, etc. | Available | Products available for non-permanent residents |
| Down payment | Varies by lender and product | Varies by lender — some lend up to the full purchase price, others expect a larger deposit from applicants without permanent residency |
- Most home loans in Japan require Japanese nationality or permanent residency, and whether or not you have permanent residency affects which products, interest rate types, and down-payment expectations apply to you.
- Flat 35 is limited to those who have been granted permanent residency or special permanent residents; other residence statuses cannot apply.
- Some financial institutions, such as Tokyo Star Bank, Suruga Bank, and SMBC Trust Bank PRESTIA, are said to accept consultations and applications even without permanent residency, but terms vary by institution and passing screening is not guaranteed.
- If returning to your home country or relocating causes you to no longer meet the residency requirement, you may be required to repay the loan in full, so this should be confirmed before signing the contract.
※Conditions vary by lender and may change. Always verify the latest terms at official websites or branch offices.
② Flat 35: Permanent Residence or Special Permanent Residence Required
Foreign nationals who wish to apply for Flat 35 (Japan Housing Finance Agency) must either have a permanent residence permit under the Immigration Control and Refugee Recognition Act, or be a special permanent resident under the Special Act on Immigration. Other residence statuses (engineer/specialist in humanities, dependent family, long-term resident, etc.) are not eligible (Source: Japan Housing Finance Agency official FAQ).
Flat 35 offers a fixed-rate mortgage for up to 35 years with no interest rate risk. Eligible foreign nationals (permanent/special permanent residents) can apply under the same procedures as Japanese nationals.
③ Banks That May Accept Non-Permanent Residents
The following are examples of financial institutions that reportedly accept home loan applications from foreign nationals without permanent residency. Conditions, interest rates, and eligible residence statuses differ by institution. Approval is not guaranteed. Always confirm the latest terms at the official website or branch before applying.
| Institution | Permanent Residency Required? | Key Conditions / Features |
|---|---|---|
| Tokyo Star Bank | Not required | "Star Housing Loan" (スター住宅ローン) for foreign nationals without permanent residency who live in Japan. Published conditions include the ability to read and write Japanese, a minimum length of employment and a minimum annual income (¥4 million+ in the standard case; ¥3 million+ for regular employees aged 40 or under). Check the bank's current product outline. |
| Suruga Bank | Not required | Offers "Dream-J Home Loan" for foreign nationals. Ability to communicate in Japanese is required. |
| SMBC Trust Bank PRESTIA | Not required | Open to Japanese and foreign nationals living in Japan; the product outline does not require permanent residency, but it states conditions such as annual income of ¥10 million+ and a limited service area. |
| SBI Shinsei Bank | Conditional | Application accepted if a Japanese national or permanent resident spouse acts as co-guarantor. |
| Aeon Bank | Conditional | May accept applicants with a valid residence status; down payment of 20%+ typically required. |
| Mizuho / MUFG / SMBC, etc. | Generally required | Standard products require permanent residency or Japanese nationality. Individual consultations may be available. |
④ Key Factors in the Loan Assessment
- Residence status type & remaining validity: Lenders look at your residence status and how long your residence card remains valid; requirements differ by lender (for example, one bank requires the card to have more than 3 months left at application). A clear renewal outlook is advantageous.
- Annual income & continuous employment: Requirements vary widely by lender and product: some set a minimum annual income or length of service, and Flat 35 limits the ratio of total annual repayments to income. Check each lender's published conditions.
- Down payment: Some lenders may ask applicants without permanent residency for a larger deposit, while others state no fixed ratio. Ask each lender.
- Spouse as co-guarantor: If a Japanese national or permanent resident spouse acts as co-guarantor, some lenders may accept the application.
- Japanese language ability: Needed to understand contract terms. Some lenders state that they cannot lend if you cannot understand the explanations and the contract in Japanese.
- Credit history in Japan: A positive credit record (credit card repayment history, no delinquencies) is beneficial.
⑤ Required Documents, Interest Types & Life Insurance
Main documents: Residence card (or Special Permanent Resident Certificate), passport, withholding tax statement / tax certificate (typically the most recent 1–3 years, depending on the lender and your employment type), employment certificate, property documents (purchase agreement, floor plan, etc.).
Interest rate types: Variable rate (follows market interest rates and can go up or down; the review schedule differs by lender — for example every 6 months, every year, or monthly — so check each lender's current published rate); Fixed-period type (for example 3, 5 or 10 years; terms differ by lender); Flat 35 full-term fixed (permanent/special permanent residents only). With some variable-rate products the rate is reviewed twice a year but the monthly repayment is recalculated only every five years, with a cap on the increase.
Group Credit Life Insurance (団信 / danshin): If the borrower dies or becomes severely disabled during the loan term, the outstanding balance is covered. Check eligibility based on your health before applying.
Home loan tax deduction (住宅ローン減税): If you buy a home to live in with a loan repaid over 10 years or more and meet the other conditions, part of your year-end loan balance (0.7% under the current rules) can be deducted from income tax. The maximum balance counted and the number of years (10 or 13) depend on the type of home, such as its energy-saving performance, and the year you move in; newly built homes that do not meet energy-saving standards are generally not eligible. The current rules apply to homes occupied by 31 December 2030. You claim it by filing a tax return in the first year; salaried employees can usually claim it through year-end adjustment from the second year. Check the National Tax Agency and MLIT pages below for current conditions, and consult a tax professional for your own situation.
⑥ Risks When Returning Home or Relocating
Home loans are extended on the premise that you personally reside in the property. If you return to your home country or are absent for an extended period and no longer meet the residency requirement, the lender may demand immediate full repayment of the outstanding balance. Discuss the possibility of overseas transfer or return with your lender before signing.
- Converting a mortgaged owner-occupied home into a rental property generally requires the lender's prior consent.
- If you anticipate returning to your home country, making systematic overpayments to reduce the balance is advisable.
- If you sell the property for less than the outstanding loan balance (negative equity), you must cover the shortfall from your own funds.
- If your residence permit renewal is denied, notify your lender immediately and discuss options.
Frequently Asked Questions (FAQ)
For the steps to open a Japanese bank account — often needed for home loan applications — see the bank account opening guide for foreigners.
⑦ Sources & References
- National Tax Agency "No.1211-1 Special Deduction for Home Loans (occupancy from 2022)" — ↗
- Ministry of Land, Infrastructure, Transport and Tourism "Housing Loan Tax Reduction" — ↗
- Japan Housing Finance Agency "Flat 35: requirements" — ↗
- Japan Housing Finance Agency FAQ "Flat 35 for foreign nationals" (Japanese) — ↗
* Approval for a mortgage is not guaranteed. Conditions and interest rates vary by financial institution. Always check the latest information at each official site. This article is for reference purposes only and does not constitute financial advice.