Yes, foreigners can own property in Japan and can get a mortgage in Japan to buy it, including as non-residents. Many Japanese lenders require permanent residency, Japanese income or residence in Japan. YEN LOANS, a licensed Tokyo lender, offers a Yen mortgage to nationals of eligible countries and regions wherever they live, with no Japanese bank account, visa or residency required.
In short
- YEN LOANS lends by nationality, evidenced by your passport, wherever you live. Japanese Permanent Residents who are nationals of India, Indonesia, Malaysia or Brazil are also eligible.
- The property must be a strata-titled apartment (condo) in a concrete (RC or SRC) building completed in 1990 or later, in one of five metropolitan areas. Detached houses do not qualify today.
- Loans run from ¥15M to ¥525M, for up to 35 years, at up to 65% of an independent valuation. The maximum is 50% for second homes, short-term rentals and loans over ¥250M.
- The rate is 1-month TIBOR + 3.50%, reset monthly (indicative 4.89627% p.a. on 1 October 2026). The 3.50% is fixed for the life of the loan.
- The loan can be arranged and settled without traveling to Japan. From application, settlement can come in as little as around thirty days, and commonly takes four to eight weeks.
Can a foreigner get a mortgage in Japan?
Yes. Foreign nationals can own property in Japan, and borrowing to buy it depends on whether you meet a lender's residency and income rules.
Owning is the straightforward part. Japan does not generally restrict foreign nationals from owning property, and a foreign buyer can hold an apartment in their own name. The title is recorded at the Legal Affairs Bureau (法務局, hōmukyoku; site in Japanese) in the same way as for a Japanese buyer. Your agent or judicial scrivener can confirm any registration or reporting steps that apply to your purchase.
Financing is the hard part. Some Japanese lenders offer low-interest home loans (住宅ローン, jūtaku rōn), but generally only to borrowers with permanent residency, income that appears on Japanese tax documents, or residence in Japan. Salaried income is often verified from the withholding tax certificate (源泉徴収票, gensen chōshū-hyō) that a Japanese employer issues each year. So a buyer who lives abroad, earns abroad, or lives in Japan without permanent residency often falls outside those requirements, even with a strong income.
What are your options as a foreign buyer?
The route that fits depends on where you live and where you earn.
If you have permanent residency, or live in Japan with Japanese income and an employment history here
A home loan from a Japanese lender
Each lender sets its own criteria. Compare this route first.
If you live in Japan without permanent residency
Some Japanese lenders
Usually with additional conditions. Lenders that assess income earned abroad, including YEN LOANS, also lend.
If you live abroad, or earn abroad
A specialist lender
One that assesses income earned abroad, such as YEN LOANS. Its terms differ from a resident home loan.
Buying with cash? No loan, so no lender criteria apply.
If you live in Japan
Living in Japan widens your options, because many Japanese lenders design their home loans for residents. Each lender sets its own criteria, but applications commonly look at:
If you meet a Japanese lender's conditions, compare its home loan first. If you do not, or you expect to keep earning abroad, YEN LOANS lends by nationality rather than residency status and assesses income earned abroad, with no visa or residency status required. YEN LOANS does not require life insurance.
Who can get a YEN LOANS mortgage?
Three things decide whether you can borrow in yen as a foreigner: the passport you hold, the property you want, and the numbers. Check all three before you pay any fee.
Your passport
Eligibility is decided by nationality, evidenced by the passport you hold. Where you live does not change it: a US passport holder in Singapore, an Australian in London, a Japanese national abroad and a US national in Japan on a work visa all qualify.
Asia Pacific
Australia, China (Mainland), Hong Kong SAR, Japan, Singapore, South Korea, Taiwan, Thailand, Vietnam
Americas
Canada, United States
Europe
EU member states, United Kingdom
With Japanese Permanent Residency
India, Indonesia, Malaysia, Brazil
Permanent residency (永住権, eijūken) matters only for nationals of India, Indonesia, Malaysia or Brazil, who qualify by holding it.
What you provide
- Passport, identification and proof of address
- Income evidence (tax returns or equivalent)
- Recent bank statements
- A credit report from your country of residence, dated within the past three months
What you do not need
- A Japanese bank account
- A visa or residency status
- Japanese income or Japanese tax returns
- A Japanese company
Documents in English, Chinese or Japanese need no translation. Income earned abroad and in foreign currency is assessed.
Offer documents are issued in English, and the team works in English, Japanese, Mandarin and Korean. Passport not on the list? The Eligibility page explains that other nationalities are reviewed case by case, so tell us about your case before you pay any application fee. Buying through a company? Our published terms are for individual borrowers, so talk to us before you apply. There are separate guides for US citizens buying in Japan and for US military families with SOFA status.
The property
Every test must be met · what to look for on a Japanese listing
Type
物件種目 bukken shumoku
A strata-titled residential apartment (condo), マンション
Construction
構造 kōzō
Reinforced concrete (RC) or steel-reinforced concrete (SRC)
Completed
築年月 chiku nengetsu
1990 or later
Location
所在地 shozaichi
One of five metropolitan areas: Greater Tokyo (Tokyo, Kanagawa, Saitama and Chiba), Kansai (Osaka, Kyoto and Hyogo), Aichi (Nagoya), Fukuoka or Hokkaido (Sapporo)
Station
交通 kōtsū
Outside central Tokyo (the 23 Wards, Musashino, Mitaka and Chofu): within a 10-minute walk of the nearest railway station
Each area covers a defined list of cities, set out on the Eligibility page. Detached houses and empty homes (空き家, akiya) do not qualify today, whatever your income or down payment. The build-year and station rules are fixed: a property that misses either one does not qualify, even if it misses by only a little. Our guide to which properties qualify for a Japan mortgage explains each rule and how to check a listing before you make an offer.
The numbers
We lend ¥15M to ¥525M, up to 65% of an independent third-party valuation, or 50% for second homes, short-term rentals and loans over ¥250M. The loan-to-value ratio (LTV) applies to the valuation, not the price you agree, and the price is a ceiling.
Worked example · illustrative, not a quote
Up to ¥58.5M on a ¥90M apartment
Before fees and purchase costs. As a second home, or if the valuation comes in lower, the loan is smaller and you need more cash.
Our guide to the down payment for buying property in Japan as a foreigner explains why valuations can come in below the price, especially in central Tokyo, and how to budget for it.
Income can limit the loan before the LTV does. We assess your verified net income after tax against your existing debt commitments, and can also take into account assets you hold in Japan or abroad, and pension or retirement income. The calculator's borrowing-power tool gives an indicative figure.
The term is up to 35 years, but you must be 80 or under at maturity, and the loan cannot run beyond 50 years from the building's construction. The shortest limit applies.
Worked example · illustrative, not a quote
58
Borrower's age today
25 years
Age of the building
22 years
Maximum term
Product maximum
35 years
for every loan
Building limit
25 years
50 years from construction − 25
Age limit
22 years
age 80 at maturity − 58
Shortest, so it applies
A shorter term means a higher monthly payment for the same loan.
Fits all three? The eligibility check takes under a minute and is not a credit decision.
Outside our criteria today
What if you or your property does not qualify today?
We state our limits plainly so that you do not spend time or an application fee on a case that cannot proceed.
Property we do not lend on today
- Detached houses
- Whole buildings
- Hotel-condominiums
- Akiya (empty homes)
- Wooden or steel-frame buildings
- Buildings completed before 1990
- Leasehold, agricultural or re-building prohibited land
Location and loan size
- Outside the five metropolitan areas
- Beyond a 10-minute walk of a station, where that rule applies
- Loans below ¥15M
Reviewed case by case
- Borrowers from outside the listed countries and regions
- Loans above ¥525M
Outside these limits? We still want to hear about it. The range YEN LOANS can finance changes over time, and we log every request. Register your interest with the property type, where it is and the approximate price or loan, and we will come back to you if it fits, now or later. It is not an application and commits you to nothing. Detached houses, other locations and company purchases are especially useful to hear about.
How does the interest rate work?
Your rate moves only when TIBOR moves, in either direction.
1-month TIBOR
The market benchmark, published every business day
3.50%
Fixed for the life of the loan
Your rate
For the month ahead, reset monthly
TIBOR is the Tokyo Interbank Offered Rate: the benchmark rate at which Japanese banks lend yen to one another, published by the JBA TIBOR Administration. On 1 October 2026, 1-month TIBOR was 1.39627%, so the indicative rate was 4.89627% p.a. It resets monthly, and the current rate is on the Loan terms page. Your monthly payment stays the same for twelve months at a time and is then recalculated.
Why does a non-resident loan cost more?
A loan to a non-resident usually has a higher rate than a home loan to a salaried resident, because it is a different product with different risks and costs. The lender verifies income earned abroad, often in a foreign currency and foreign tax documents, and the borrower may be in another country if a loan runs into difficulty. The YEN LOANS rate reflects this cross-border underwriting and the credit risk it carries as a principal lender.
The interest-only option
If you choose an interest-only period, you repay no principal for up to five years and the rate carries a 1.00% p.a. premium. When the period ends, the premium is removed and the loan amortizes over the remaining term, so the monthly payment steps up. Our guide to variable-rate mortgages in Japan shows what a rate change and that step do to the payment.
What does it cost beyond the down payment?
Here is what you pay, and when.
Before you apply
Nothing to pay
An inquiry and a preliminary indication carry no fee.
When you apply
Paid by you
Commitment fee (¥220,000) and appraisal fee (¥110,000)
At settlement
Taken from your loan
Loan origination fee, loan entrustment fee, payment reserve and stamp tax: together about 4% of the loan
Buying costs
Paid by you, typically around 6–8% of the price
Agency commission, registration and license tax, the judicial scrivener's fee and Real Estate Acquisition Tax (不動産取得税, fudōsan shutoku-zei)
Every year
Paid by you while you own it
Loan maintenance fee, Fixed Asset Tax (固定資産税, kotei shisan-zei) and income tax on any rent
Buying costs are set by law or by others; the Fees page lists their standard rates.
Settlement deductions are taken from the loan proceeds, so they are not a separate payment on the day, but less than the full loan reaches the seller.
Tax as an owner
Rent. If you are a non-resident, 20.42% of any rent is generally withheld at source by the tenant or agent who pays it to you, and you file a Japanese tax return to settle the final tax. The National Tax Agency publishes guidance in English.
Selling. A gain is taxed at the lower long-term rate only if you had owned the property for more than five years on 1 January of the year you sell. Our guide to closing on a property in Japan explains the rule.
Where you live. You may also owe tax where you live, on rent and on any gain when you sell, subject to any double-tax treaty.
This is general information. YEN LOANS does not provide tax advice, so consult a qualified adviser familiar with both systems.
How does the process work from overseas?
Four steps. None of them requires you to travel to Japan.
-
01
Inquiry and consultation
A short intake form, then a preliminary indication of what you could borrow. No fee.
24 to 48 hours
-
02
Application
Once you have a property, you apply and pay the two application fees. We issue a pre-approval letter, then our credit decision.
About 10 business days
-
03
Confirmation and documentation
We issue the loan offer letter and loan documents. You sign them where you are and return them.
5 to 10 business days
-
04
Settlement (決済)
Funds are exchanged through escrow and the mortgage is registered. It can be completed remotely, with a power of attorney if you cannot attend.
5 to 15 business days
Application to settlement: commonly four to eight weeks, and as little as around thirty days.
“It was pretty smooth. [The YEN LOANS team] did a good job of talking it through and letting us know in advance: ‘This is what we need, and this is when we need it.’”
Neither a preliminary indication nor a pre-approval letter is a commitment to lend, and nor is a credit decision until the loan agreement is executed.
After settlement you pay monthly, in yen, with or without a Japanese bank account. Our guides to getting a Japan mortgage from overseas and closing on a property in Japan cover each step, and the Process page has the summary.
What risks should you weigh before borrowing?
Currency
Payments stay in yen
Paid from another currency, each payment costs more when your currency weakens against the yen, and less when it strengthens. Rent earned in Japan is yen income. YEN LOANS does not provide currency hedging or advice on it.
Rate
Reset monthly
Your payment can rise or fall at each reset. Loan terms shows the payment on an illustrative ¥100M loan if TIBOR rises by 1% or 2%. Check that your budget still works at those levels.
Recourse
Full recourse
If enforcement of the security does not clear the balance, you remain personally liable for the shortfall. If your circumstances change, contact us before a payment is missed.
Selling during the term
Repay in full on sale
A sale must repay the loan in full at the same time. If the proceeds fall short, you pay the difference before the mortgage can be released. You can prepay up to 10% of the outstanding balance in each twelve-month period of the loan without penalty. Above that, a sale in the first three years carries a penalty on the excess of 3% in year one, 2% in year two and 1% in year three, and there is none from the 37th month.
Reference
The YEN LOANS mortgage at a glance
YEN LOANS is a principal lender, not a broker, registered with the Tokyo Metropolitan Government under the Money Lending Business Act, license Governor of Tokyo (1) No. 31998 (see the Financial Services Agency's register of money lenders, in Japanese). Its mortgage, the All Japan Tracker, is a Yen first-mortgage loan collateralized by a qualifying apartment. Final pricing is subject to credit assessment and security review.
| Item | YEN LOANS All Japan Tracker |
|---|---|
| Loan type | Yen first-mortgage loan, fully amortizing, with an optional interest-only period |
| Uses | Purchase, refinance or equity release, on identical terms |
| Who can borrow | Nationals of eligible countries and regions, wherever they live, and Japanese Permanent Residents who are nationals of India, Indonesia, Malaysia or Brazil |
| Borrower age | Aged 20 or over at application and 80 or under at loan maturity |
| Property | A strata-titled residential apartment, RC or SRC, completed in 1990 or later, in one of five metropolitan areas |
| Loan size | ¥15M to ¥525M |
| Maximum loan-to-value ratio (LTV) | 65% of an independent valuation, with the purchase price as a ceiling. 50% for second homes, short-term rentals and loans over ¥250M |
| Term | Up to 35 years, capped by age 80 at maturity and by 50 years from the building's construction |
| Interest rate | 1-month TIBOR + 3.50%, reset monthly |
| Premiums | +0.50% p.a. on loans above ¥150M. +1.00% p.a. during an interest-only period |
| Interest-only option | Up to 5 years, then the loan amortizes over the remaining term |
| Payments | Monthly, in yen |
| Recourse | Full recourse to the borrower |
| Life insurance | Not required |
| Early repayment | Up to 10% of the outstanding balance in each twelve-month period of the loan without penalty (minimum ¥500,000). On amounts above that, 3%, 2% and 1% in years 1 to 3. No penalty from month 37 |
Frequently asked questions
Do I need permanent residency to get a mortgage in Japan?
Not with YEN LOANS. Eligibility depends on the passport you hold, not on where you live or your visa status. Nationals of the eligible countries and regions, including Australia, Canada, the United States, the United Kingdom, EU member states, Japan, Singapore, Hong Kong SAR and Taiwan, can apply whether they live in Japan or abroad. Permanent residency matters only for nationals of India, Indonesia, Malaysia and Brazil, who qualify by holding it. The full list is on the Eligibility page.
How much cash do I need to buy?
With YEN LOANS, at least 35% of the purchase price, or at least half for second homes, short-term rentals and loans over ¥250M, plus one-off purchase costs of typically around 6–8% of the price. Including YEN LOANS' fees, plan for about 44–46% of the price in total at 65% LTV, or about 59–61% at 50%. You need more if the independent valuation comes in below the price. Our guide to the down payment for buying property in Japan works through the figures and when each payment is due.
Do I need a Japanese bank account?
No. Most non-resident borrowers have none, and the loan is set up for that. A local property manager (管理会社, kanri-gaisha) approved by YEN LOANS collects the monthly payment in yen from the property's management account, which you keep funded from wherever you bank. If you do not have a manager, YEN LOANS introduces one before your first payment is due. The manager's fee is agreed with them directly and is not a YEN LOANS charge.
Can I rent the apartment out?
Yes. A long-term rental is financed on the same terms as a home you live in, up to 65% of the valuation. A short-term rental, such as a holiday let, is limited to 50%. An apartment that is not your residence needs a local property manager approved by YEN LOANS, and the rent can flow into the account the monthly payment is collected from. Rental income is taxable in Japan, so ask a qualified tax adviser what applies to you. Our guide to buying a Japanese apartment to let, or as a holiday home covers letting from abroad.
Will buying property in Japan give me a visa or residency?
No. Owning property in Japan does not by itself give you a visa or residency status. Immigration status is a separate matter under Japan's immigration rules. The reverse is also true: you do not need a visa or residency to own an apartment in Japan or to borrow from YEN LOANS.
Japanese terms in this guide
- 住宅ローンjūtaku rōn
- A home loan: the usual Japanese term for a residential mortgage.
- 永住権eijūken
- Permanent residency: an immigration status that lets a foreign national live in Japan with no limit on the period of stay.
- 源泉徴収票gensen chōshū-hyō
- The annual withholding tax certificate a Japanese employer issues to an employee, widely used to verify salaried income.
- 団信danshin
- Short for 団体信用生命保険 (dantai shin'yō seimei hoken), group credit life insurance: cover that repays a home loan if the borrower dies or becomes severely disabled. Many Japanese home loans require it.
- 管理会社kanri-gaisha
- A property management company. For a borrower without a Japanese bank account, the monthly payment is collected from the property's management account, and rent from a let property flows into the same account.
- 決済kessai
- Settlement, or completion: the day the purchase completes, the seller is paid in full, and ownership and the mortgage are registered together.
Written by Kyle Steele · Reviewed by Mark T. Drabkin, Representative Director & CEO · Last reviewed .
YEN LOANS K.K. is a money lender registered with the Tokyo Metropolitan Government under the Money Lending Business Act (MLBA), license Governor of Tokyo (1) No. 31998. This article is general information, not financial advice, and is not an offer of finance. Worked examples are illustrative. Rates are indicative, reset monthly, and subject to credit assessment and security review. Effective annual rate (実質年率) within 14.6%, calculated on the principal net of fees; late-payment charge up to 20.0% p.a. All loans are full recourse to the borrower. Applications are subject to careful review and may be declined. Please check the terms of your agreement and borrow within your means. 慎重な審査の結果、お申込みの意に沿えない場合がございます。ご契約内容をご確認のうえ、ご利用は計画的に。 Full product terms are set out under Loan terms, all costs under Fees, and the approved Japanese disclosure under 貸付条件の表示.