Mortgages for foreign residents in Japan: why permanent residence matters

Prices, taxes and rules change. Last checked: 7 November 2026. Figures come from the official statistics and pages listed under Sources; confirm them before you sign anything.

Most people who buy a home in Japan borrow. For foreign residents, the key question is usually not income but residence status. This guide explains why, using the rules of the government-backed Flat 35 loan and MLIT’s survey of lenders. We do not recommend specific banks.

Why permanent residence matters

A home loan lasts up to 35 years. Most residence statuses must be renewed every few years, so lenders worry that you may have to leave Japan before the loan is repaid. Permanent residence removes that risk. The Flat 35 loan of the Japan Housing Finance Agency requires the applicant to have Japanese nationality, permanent residence or special permanent residence. If it turns out you did not have it, the whole loan must be repaid at once. See our permanent residence guide for the requirements.

What lenders look at

MLIT surveys Japanese lenders every year. In its FY2025 report (March 2026), 98.4% of lenders said they consider your age when the loan ends and 96.1% your health. In recent reports, more than 90% also considered:

• your age when you borrow,
• the value of the property (collateral),
• your annual income,
• how long you have worked in your current job,
• your repayment ratio: total yearly loan repayments divided by income.

Fewer lenders, but still many, list nationality as a factor (68.0% in the FY2021 survey) and your employment type, such as permanent or contract (75.6% in FY2021).

Flat 35 in numbers

• Applicant under 70 at the time of application.
• Japanese nationality, permanent residence or special permanent residence.
• Total repayment ratio (all loans): up to 30% of annual income below ¥4 million, up to 35% at ¥4 million or more.
• Loan amount from ¥1 million to ¥120 million, within the cost of the property.
• Term up to 35 years, and not beyond age 80 minus your age at application.

Private banks set their own rules, which can be stricter or looser. Ask each lender for its written conditions for foreign nationals.

Without permanent residence

Some lenders do consider applicants without permanent residence, usually with extra conditions that they decide themselves. Expect questions about your visa, your employer and your plans, and a smaller choice of products. Never give false information on a loan application, and do not let anyone “arrange” a loan by changing facts for you.

Realistic expectations

• Save for the costs of buying: brokerage, taxes and fees are paid on top of the price (see can foreigners buy property in Japan?).
• Keep a stable job. Lenders look at how long you have worked there.
• Check your health early: almost all lenders consider it.
• Plan for rising rates if you choose a variable-rate loan.
• Think about what happens if you leave Japan: the loan does not end when your visa does.

Common mistakes and scams

• House hunting before you know how much any lender will lend.
• Using a broker who promises a loan “with any visa” for an up-front fee.
• Changing jobs just before applying.
• Ignoring your other debts (car loan, card instalments), which count in the repayment ratio.
• Buying an investment flat with a home loan meant for your own home.