Buying a home in Japan for retirement, from the United States

“I worked and lived in Japan for over 10 years before moving back to the US. So I had that connection with Japan. And I knew I wanted to retire in Japan. That made me start looking in the Kanto area. […] I was very familiar with the area.”

“That was one of my concerns, because when I was in Japan, I actually visited a few banks and asked about the qualifications. This was after I was living in Japan, when I was visiting. Even if I had all the savings for it and an income, the Japanese banks’ requirement was strict: income in Japan, regardless of how much savings you might have in cash.”

“I didn’t know whether a loan would be possible. I’d need to just use my savings, which would definitely not be ideal, because there’s an opportunity cost with that as well. So that’s why I was very happy when I learned about YEN LOANS.”

YEN LOANS note Eligibility is decided by the passport you hold, not by where you live. US citizens are among the nationalities we lend to, and you do not need Japanese residency, Japanese income or a Japanese bank account. The full list is on our eligibility page.

“Through my real estate agent. I found the agent through a YouTube video on retirement in Japan. So I knew the name, and I followed along. And then I did my own research on the side as well, just to understand the market, for both houses and apartments. Initially I was keeping an open mind. I was thinking more house than apartment, just because in the US everyone pretty much has houses.”

“My real estate agent told me YEN LOANS was a pretty recent startup, and introduced me to [the YEN LOANS team]. But even before that, the agent made the initial contact with [the YEN LOANS team] on my behalf to find out the possibility of qualifying for a loan. I provided some basic financial information on income and savings, and we got an idea that I should be able to qualify, so I was not concerned. Actually, I was very happy to learn that that was a possibility. That was the key in the whole process.”

“[The YEN LOANS team] was very professional. After my real estate agent introduced me, I received an email of introduction, and there was a client intake form that I filled out. That helped get an initial feel for what I may qualify for. And that was very, very helpful, because I was able then to focus on the type of properties that I wanted, working with my real estate agent up front. And this saves everyone time.”

“It’s a triangle: I’m working with my real estate agent, I’m working with [the YEN LOANS team], and then myself. We were pretty much focused at that point on specific apartments, and also the price range that I was able to qualify for. From the time my real estate agent introduced me, it was just a day or two before I knew the type of properties I may qualify for. So I was very impressed with that process.”

YEN LOANS note The client intake form takes about ten minutes. We then carry out a preliminary property and serviceability assessment and give an indicative borrowing figure, typically within 24 to 48 hours. It is indicative only: the loan remains subject to a full application, credit assessment, an independent valuation of the property and final approval. The loan is sized on that valuation, up to 65% of it, and the valuation can sit below the purchase price.

“In terms of the documentation required, it was pretty similar to getting a loan in the US. But in terms of speed, I think YEN LOANS is actually faster, in my experience. With the few banks I’ve worked with in the US, you have to work with so many different people; you have multiple contacts. With YEN LOANS, I knew [one person on the team] was the main contact. So that was very helpful.”

“I was well prepared, from years and years ago, in building up retirement savings. So I was totally fine with that.”

“Nothing really surprised me. The actual term, given my age, was maybe a little bit less, but I think that’s very similar to what it would be in the US. I knew that the rate itself was a little higher than what it would be locally in Japan. But still, it would not be as high as the US. So nothing surprising overall. I think the loan terms were reasonable.”

YEN LOANS note Loan terms run up to 35 years, subject to our maturity limits, which take account of the borrower’s age and the age of the building, so a term can be shorter than the maximum. Current terms are on our loan terms page.

“I had a video call. I think this was after the loan documents were sent out to me, so I had the paper copy in front of me. It was very well explained. We walked through the most important terms. And I also had a chance to pre-read it in advance, since it came by courier. So that worked out really well, on a video call.”

“I was not in Japan for the settlement; I was here in the US. I got the keys sent afterwards, and then I went to look at the apartment about a month or so ago.”

“I understand this might be in the future, but an option for loans on detached houses would be nice. That’s a difficult market because of the appraisal, I understand, and a number of things. In my case, probably not, but other people may want to consider a house if it’s a newer model and meets their requirements. But I think there has to be some guardrails on that.”

“And I think the other thing is an option for a fixed-rate mortgage, if that’s possible. It’s easy to say in a market where the rates are on the rise. […] That’s a nice-to-have. Maybe it’s a hybrid: 10 years fixed, and then variable.”

YEN LOANS note Lending is currently limited to apartments in the metropolitan areas listed on our eligibility page; detached houses fall outside our criteria today. If your property is outside them, you can register your interest. The rate floats: it is set at 1-month TIBOR + 3.50% and moves with TIBOR. A fixed-rate loan is not currently offered.

“Go explore first, before just searching online. You’ve got to be familiar with the area, the neighborhoods.”

“Start early in the process by working closely with your real estate agent and YEN LOANS to understand the possibility of a mortgage. This will clarify the type of properties and the area that you may qualify for, before going too far in a property search. It will bring focus to your search, and also save time for everyone.”

“And one more thing: keeping a log of transaction documents received and action items required, because there can be interfacing with many, many people, and everything’s remote. That’s the same process I use for my work. When you have multiple deadlines and multiple people you’re coordinating with, having that log is really important.”

“For me, it was a smooth process: my first time through it in Japan, and my first time through it remotely. I think it was just a great experience, and I would highly recommend it for someone else. Of course, someone else who qualifies.”