How to Get a Foreigner Mortgage in Japan Without PR
Getting a foreigner mortgage in Japan without PR is absolutely possible—and more straightforward than many expats realize. While permanent residency simplifies the process, several major banks actively court foreign residents who haven’t yet obtained PR status.
📅 Last Updated: February 2026
This guide covers everything you need to know: which banks lend to non-PR holders, current interest rates, down payment requirements, and the exact documents you’ll need. Whether you’re on a work visa, spouse visa, or other long-term status, buying property in Japan through financing is within reach.
| Quick Reference | Details |
|---|---|
| PR Required? | No—several banks lend without PR |
| Minimum Down Payment | 20-30% for non-PR borrowers |
| Minimum Income | ¥4-5 million annually |
| Interest Rates | 1.65% - 3.2% variable |
| Approval Timeline | 4-8 weeks typical |
| Max Loan Term | Up to 35 years |
Can Foreigners Get a Mortgage Without Permanent Residency?
Yes. Permanent residency is not a legal requirement for obtaining a housing loan in Japan. Several banks have created specific mortgage products targeting foreign residents without PR.
The key distinction is between:
- Non-PR Residents: Living in Japan on a valid visa (work, spouse, etc.) without permanent residency
- Non-Residents: Living outside Japan entirely
For non-PR residents, multiple lending options exist. Non-residents face much stricter requirements—typically needing 40-60% down payments through specialized lenders.
💡 Pro Tip: Apply to multiple banks simultaneously. Approval criteria vary, and some borrowers get rejected by one bank while being approved by another with nearly identical applications.
Banks That Offer Mortgages Without Permanent Residency
Three banks stand out for their explicit willingness to lend to foreigners without PR. Each has different strengths depending on your situation.
SMBC Prestia
Best for: High-income professionals, large loan amounts
SMBC Prestia (formerly Citibank Japan) is arguably the top choice for many foreign residents. According to Yasuharu Matsuno, co-founder of Blackship Realty: “SMBC Prestia explicitly does not require permanent residency and has a long history serving international clients.”
Key features:
- Loans up to ¥500 million
- Variable and fixed-rate options
- English-speaking staff at many branches
- Monthly account fee of ¥2,200 (may be waived)
Tokyo Star Bank
Best for: Non-PR applicants seeking dedicated foreign-resident products
Tokyo Star Bank offers the Star Mortgage specifically designed for non-permanent residents. This is their flagship product for foreigners without PR.
Key features:
- Loan amounts from ¥5 million to ¥100 million
- Up to 35-year loan terms
- 1.10% interest rate reduction available with salary deposit
- Explicit pathway to better rates once you obtain PR
SBI Shinsei Bank
Best for: Foreigners with Japanese spouses
SBI Shinsei Bank offers the PowerSmart Home Mortgage to non-PR applicants, but with one important condition: “Non-permanent residents can apply for the PowerSmart Home Mortgage if their spouse is a Japanese citizen or permanent resident of Japan, and the spouse must be appointed as a guarantor.”
Key features:
- Competitive rates for qualified applicants
- Strong digital platform
- English support available
Interest Rates and Loan Terms for Non-PR Borrowers
Interest rates for foreigner mortgages in Japan without PR are higher than what PR holders receive, but they remain competitive by global standards.
Current Interest Rates (February 2026)
| Bank | Variable Rate | Fixed Rate (10yr) | Notes |
|---|---|---|---|
| Tokyo Star Bank | 1.65% - 2.75% | — | With salary deposit discount |
| SMBC Prestia | ~1.0% - 1.5% | ~1.8% | Varies by credit profile |
| SBI Shinsei Bank | 1.9% - 3.2% | — | Requires spouse guarantor |
| Suruga Bank | 1.6% - 2.8% | — | Alternative option |
💡 Pro Tip: Tokyo Star Bank offers a 1.10% lifetime interest rate reduction if you deposit your salary directly into your account with them. On a ¥30 million loan, this saves over ¥2 million in interest over a 35-year term.
Loan Terms
- Maximum term: Up to 35 years for non-PR borrowers
- Age limits: Must be 20-65 at loan origination; loan must be repaid by age 75-80
- Loan-to-value: Typically 70-80% for non-PR (meaning 20-30% down payment required)
Down Payment and Loan-to-Value Requirements
The biggest financial difference between PR and non-PR mortgages is the down payment requirement.
| Borrower Type | Typical Down Payment | Loan-to-Value Ratio |
|---|---|---|
| PR Holders | 10-20% | 80-90% |
| Non-PR Residents | 20-30% | 70-80% |
| Non-Residents (Overseas) | 40-60% | 40-60% |
For a ¥50 million property, a non-PR borrower should budget ¥10-15 million (approximately $65,000-100,000 USD) for the down payment, plus another 6-8% for closing costs.
💡 Pro Tip: Some banks will accept a lower down payment if you have a Japanese spouse as co-borrower or guarantor, or if your annual income significantly exceeds the minimum requirements.
Requirements for Non-PR Mortgage Applicants
Banks assess non-PR applicants on several criteria. Meeting the minimums doesn’t guarantee approval, but falling short on any one usually means rejection.
Income Requirements
- Minimum annual income: ¥4-5 million (approximately $26,000-33,000 USD)
- Debt-to-income ratio: Maximum 25-35% of gross income can go toward debt payments
- Stable employment: Most banks require 1-3 years of continuous employment in Japan
Visa and Residency Requirements
- Valid residence card (zairyu card)
- Work visa, spouse visa, or other long-term visa status
- Must be registered as a resident of Japan
Credit and Financial Profile
- Good credit history in Japan (no major delinquencies)
- Stable bank account history
- Ability to qualify for group credit life insurance (danshin)
The 25-5 Mortgage Rule
Many Japanese banks follow the 25-5 rule: your annual debt payments should not exceed 25% of your gross income, and your annual mortgage payment specifically should not exceed 35% of your gross income. For a deeper explanation, see our guide to Japan’s 25-5 mortgage rule.
Required Documents for Mortgage Application
Gather these documents before approaching banks. Having everything ready speeds up the process significantly.
Personal Identification
- Passport (all pages with stamps)
- Residence card (zairyu card) — front and back
- Inkan (personal seal) and inkan certificate from city office
Income Verification
- Gensen-choshuhyo (withholding tax certificate) — past 2-3 years
- Employment certificate from your company
- Most recent 3-6 months of bank statements
- Tax payment certificates
Property Documents
- Property listing or purchase agreement
- Building registry (toki-bo)
- Land survey map
- Condominium management documents (for apartments)
Health Documents
- Health declaration for group life insurance (danshin)
- Recent medical exam results may be required for larger loans
💡 Pro Tip: All mortgage contracts in Japan are executed in Japanese. English translations are provided for reference only. Consider hiring a bilingual real estate attorney if you’re not comfortable with Japanese legal documents.
Step-by-Step Mortgage Application Process
The mortgage process for foreigners in Japan without PR typically takes 4-8 weeks from application to closing.
Step 1: Pre-qualification Consultation (2-3 days)
Contact foreigner-friendly banks (Prestia, Tokyo Star, Shinsei) for an initial assessment. Bring:
- Passport and residence card
- Recent pay slips
- General property criteria
Banks will give you a preliminary sense of your borrowing capacity without running a formal credit check.
Step 2: Document Preparation (1-2 weeks)
Gather all required documents. The gensen-choshuhyo (tax withholding certificate) is crucial—request it from your employer or download from e-Tax if you file your own taxes.
Step 3: Formal Loan Application — Moshikomi (30 minutes)
Submit your completed application with all documents, including the health declaration for danshin insurance. Double-check everything; missing documents delay the process.
Step 4: Screening Process — Shinsa (2-5 weeks)
The bank conducts:
- Credit check
- Income verification
- Employment confirmation
- Property appraisal
This is the longest part of the process. Some applicants hear back in 2 weeks; complex cases can take 5 weeks or more.
Step 5: Loan Approval Notification (1-2 days after screening)
You’ll receive written approval detailing:
- Approved loan amount
- Interest rate
- Loan term
- Any conditions (e.g., increased down payment)
Step 6: Contract Signing — Keiyaku (1 week before closing)
Sign the loan agreement, mortgage deed, and insurance documents at the bank or title office. Bring your inkan and be prepared for a lengthy signing session.
Step 7: Loan Disbursement and Closing — Kessai
On closing day, funds are released directly to the seller, property title transfers to your name, and you receive the keys. Congratulations—you’re a property owner in Japan.
Group Life Insurance (Danshin) Explained
Danshin (団体信用生命保険) is group credit life insurance, and it’s mandatory for most mortgages in Japan. If you pass away or become severely disabled during the loan period, danshin pays off the remaining mortgage balance.
How Danshin Works
- Coverage equals your outstanding loan balance
- Premium is typically included in your interest rate at private banks
- You must pass a health screening to qualify
- Coverage continues until the loan is paid off
Enhanced Coverage Options
Some banks offer enhanced danshin with additional coverage for serious illnesses. This costs an extra 0.1% - 0.3% added to your interest rate but provides protection against:
- Cancer
- Stroke
- Heart attack
- Other specified conditions
💡 Pro Tip: Health issues can disqualify you from danshin, effectively blocking your mortgage. If you have pre-existing conditions, disclose them honestly—lying can void your coverage. Some banks offer relaxed danshin screening at higher rates for applicants with health concerns.
Common Rejection Reasons and How to Avoid Them
Understanding why banks reject applications helps you strengthen yours.
Top Rejection Reasons
- Insufficient income: Below ¥4-5 million annually or unstable income history
- Too little time at current job: Less than 1-2 years continuous employment
- High debt-to-income ratio: Existing loans push you over the 25-35% threshold
- Visa concerns: Short-term or unstable visa status
- Health issues: Unable to qualify for danshin insurance
- Credit problems: Late payments or defaults in Japan or home country
- Property issues: Bank appraises property lower than purchase price
How to Improve Your Chances
- Build employment history: Wait until you have 2+ years at your current job
- Pay down existing debt: Clear credit cards and car loans before applying
- Save a larger down payment: 30% down significantly improves approval odds
- Apply to multiple banks: Different banks have different criteria
- Consider a Japanese co-borrower: A spouse or partner with PR can strengthen applications
What Happens When You Obtain PR Later
Good news: if you obtain permanent residency after getting your non-PR mortgage, you may qualify for better terms.
Tokyo Star Bank explicitly states: “If you receive a permanent residence permit during the loan period and contact TSB, you may be eligible for a preferential interest rate on your loan after a predetermined screening.”
Options After Obtaining PR
- Rate reduction with current bank: Some banks will lower your rate (Tokyo Star Bank explicitly offers this)
- Refinancing: Shop around for better rates and refinance with another bank
- Equity access: Easier to get home equity loans or lines of credit
💡 Pro Tip: After obtaining PR, proactively contact your bank and ask about rate improvements. Don’t wait for them to reach out—they won’t.
Frequently Asked Questions
Do you need to be a resident to buy property in Japan?
No. Foreigners can buy property in Japan on a tourist visa without being a resident. However, getting a mortgage without being a resident is extremely difficult. Non-residents typically need 40-60% down payments through specialized lenders. For financing, you’ll need to be a registered resident with a valid visa.
What is the minimum income required for a mortgage without PR?
Most banks require ¥4-5 million annual income (approximately $26,000-33,000 USD) for non-PR mortgage applicants. However, income alone isn’t sufficient—banks also consider your debt-to-income ratio, employment stability, and visa status.
Can I refinance at a lower rate once I get permanent residency?
Yes. Several banks offer preferential rates to existing borrowers who obtain PR. Tokyo Star Bank explicitly includes this in their Star Mortgage terms. Alternatively, you can refinance with any bank once you have PR, as you’ll qualify for mainstream products with lower rates and better terms.
Do I need a Japanese guarantor to get a mortgage?
It depends on the bank. SMBC Prestia and Tokyo Star Bank typically don’t require a guarantor for qualified applicants. SBI Shinsei Bank requires non-PR applicants to have a Japanese spouse or PR holder spouse as guarantor. Having a Japanese co-borrower or guarantor generally improves your approval chances and may unlock better rates.
How long does the mortgage approval process take for foreigners?
The typical timeline is 4-8 weeks from application to closing. The screening process (shinsa) takes 2-5 weeks and is the longest phase. You can speed up the process by having all documents ready before your first application meeting.
Related Guides
Understanding mortgages is just one part of buying property in Japan. These guides cover the broader process:
- Complete Guide to Buying Property in Japan — Overview of the entire purchase process
- Japan’s 25-5 Mortgage Rule Explained — Understanding debt-to-income requirements
- Taxes and Finance for Property Owners — Ongoing costs after your purchase
Official Bank Resources
For the most current rates and requirements, consult these official sources:
- Tokyo Star Bank - Star Mortgage — Non-PR mortgage product page
- SMBC Prestia Housing Loan — Official foreigner mortgage information
- SBI Shinsei Bank PowerSmart Mortgage — English mortgage details
- Japan Housing Finance Agency — Government housing finance programs
Final Thoughts
Getting a mortgage in Japan without permanent residency requires more preparation and a larger down payment than PR holders face, but it’s entirely achievable. The key steps are:
- Save 20-30% for down payment plus 6-8% for closing costs
- Build stable employment history of at least 2 years
- Apply to multiple foreigner-friendly banks simultaneously
- Have all documents ready before your first meeting
Start with SMBC Prestia or Tokyo Star Bank if you don’t have a Japanese spouse. If you do have a Japanese spouse willing to act as guarantor, SBI Shinsei Bank becomes another strong option.
Ready to start your property search? Our complete guide to buying property in Japan walks you through the entire process from start to finish.
This guide was last updated in February 2026. Interest rates and bank policies change frequently—always verify current terms directly with each bank before applying.