Buying a family home in Tokyo before moving back to Japan

“A change in our circumstances made it possible for us to move back. I had originally planned to stay in the US for the rest of my life, but that change gave us the opportunity to return. My parents are getting older, but they can still go out, so I want to spend more time with them. Our children also have the opportunity to spend some of their school years in Japan, and they want to spend time with their grandparents. We’re preparing to move back as a family.”

“Our kids were born overseas. They have spent some time in Japan during their summer breaks, but only on short visits. They like Japan, but so far they have experienced it as visitors. They’ve never attended Japanese schools. Living near an international community will give them access to a familiar environment while they adjust to life in Japan, so they will probably feel more comfortable. I focused our search on homes within easy reach of that kind of community and close to a station.”

“Originally, we planned to pay in cash. Some of my funds were becoming available in stages, so I would have had to wait for the full amount. I liked the apartment, and we probably could have paid for it entirely in cash, but I also needed to keep some funds available in the meantime. I had a couple of other options, but this home was a little above our budget, so the loan helped us go ahead with the purchase.”

“I searched the internet, but I couldn’t find an option that fit my circumstances. I was applying as a foreign national while living outside Japan, which made it difficult to find a lender that could accommodate my situation. I even sent an email to an overseas bank, but its loans were restricted to nationals of that country, so I wasn’t eligible. That left me with very limited options.”

“I watched a YouTube video from a Japanese real estate convention where someone mentioned YEN LOANS. So I searched the internet and found that you provide loans to foreign nationals.”

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.

“I had previously purchased a house in the US, and the loan process was very complicated and took a long time. This time, with YEN LOANS, it was very easy. […] I had to provide a bank statement and a pay stub.”

“The process was pretty easy because [the YEN LOANS team] took good care of me. They checked in frequently and made sure I submitted the right information and documents.”

YEN LOANS note From the application stage, borrowers provide identification, income evidence and recent bank statements, in English, Chinese or Japanese. The full list is on our process page.

“Nothing. The interest rate was on the website, and it was a little higher than the rate on a traditional loan for Japanese residents, which I expected. […] There were no surprises. The first email I received from [the YEN LOANS team] was clear and transparent, and all the fees were clearly explained.”

“Yes, because I was worried at first: if we couldn’t get approved, we would need to find another way. But because we were pre-approved pretty quickly, I could make an attractive offer to the seller. […] It was like making a cash offer, without a loan contingency. That was very helpful.”

YEN LOANS note A pre-approval is indicative. The loan remains subject to a full application, credit assessment, an independent valuation of the property and final approval.

“The loan process was online. I signed the final documents when I purchased the house […], and I visited the office to meet [the YEN LOANS team]. […] We got the keys in mid-August. I have a bank account in Japan, so that’s what we use for the monthly payments.”

YEN LOANS note Where a borrower holds a Japanese bank account, the monthly payment is collected from it by direct debit. Where they do not, repayment runs through a local property manager (管理会社, kanri-gaisha) and is collected from the property’s management account.

“I didn’t know you were new. I thought you had been doing this for a long time. […] So I was comfortable working with you. That was a surprise.”

“Maybe. Settlement is only available on certain days, right? Not every day. […] A little more flexibility would be great. But I don’t think that’s a major issue. It’s a minor point, and in our case it worked out fine.”

“We didn’t want to wait until we moved to Japan to start looking for a house. We needed to coordinate the move with our children’s school timetable, so we could only be without a place to live for a short time. Purchasing a house while living overseas was very difficult. Having enough cash would make that easier, but if you need a loan, finding a lender that can work with a non-resident can be challenging. I would recommend talking to YEN LOANS and finding a house ahead of the move, so you can be prepared.”

“In Tokyo, it is difficult to find a good house in a good location. If you have to rush, you may end up with the wrong location or the wrong house at a very high price. But if you have time to search and buy, you’re in a stronger position. You have time to consider your options, and you can control the timing. We started well before moving to Japan, so we had plenty of time to search.”