Real Estate

Looking to take the plunge and buy property in Japan? The good news is expats can buy a home and take out a mortgage in Japan, although the process can be tricky and time-consuming. This is why it pays to do a bit of research into how the system works. This handy guide covers the basics, including mortgage types and how much you can borrow, so you know what to expect. Who can get a mortgage in Japan? In theory, anyone can buy property and take out a mortgage in Japan, although many Japanese banks are reluctant to lend to people without permanent residence status. If they do, they often tighten the eligibility criteria and may charge increased rates. In general, you can take out a Japanese mortgage if you: Some lenders may have additional criteria, for example requiring you to have a valid life insurance policy. Types of Japanese mortgages and rates Mortgage interest rates in Japan are based on the Bank of Japan’s prime lending rate, which stands at 1.625% (as of Februrary 2025). The main types of mortgage to choose from are: Local municipal governments also offer public mortgages with more favorable terms than many banks, but…