How to apply for a mortgage in Japan
How to apply for a mortgage in Japan
The standard Japanese mortgage process includes three stages: pre-approval, final application, and disbursement. Getting pre-approved makes it easier to proceed with a property contract. The full process takes 1–2 months on average.
Steps to apply for a mortgage
Pre-approval: Lenders assess your income, job, existing debts, and savings to issue a preliminary decision.
Formal application: After selecting a property, submit documents like resident certificate, tax withholding slip, and sales agreement.
Loan approval and signing: If approved, sign a loan contract. Group life insurance enrollment usually happens at this stage.
Loan disbursement: After registration procedures, the loan is paid to the seller.
Repayment begins: Repayment starts via automatic bank deduction from the following or next month.
Always use the latest documents, and double-check interest and repayment terms before signing. Consider consulting a housing loan advisor or certified financial planner for extra guidance.
Tips to pass mortgage screening
Check your credit history in advance. Reduce other debts, and avoid overusing credit cards. Applying jointly with a spouse or using a parent-child mortgage relay option can improve approval odds. Avoid late payments in the months before you apply.
The Japanese mortgage market harmonizes tradition with cutting-edge innovation, where meticulous policies and subtle market dynamics yield unexpected investment angles.
How to compare mortgage offers in Japan
How to compare mortgage offers in Japan
Choosing a mortgage in Japan isn’t just about finding the lowest rate. You’ll want to evaluate total repayment cost, risk exposure over time, and all additional fees. Use simulation tools and calculators to compare across lenders.
What to check when comparing
Interest rate type: Compare fixed, variable, and fixed-period options. Know how often variable rates are reviewed and if caps apply.
Total and monthly repayments: Simulate different tenures to understand long-term financial burden.
Fees and guarantee costs: Include processing fees (flat or percentage-based), admin fees, and guarantor company charges.
Prepayment options: Check if early or partial repayment is allowed and whether fees apply.
Insurance types: Compare life insurance types—cancer, critical illness, etc.—and whether premiums are included in the rate.
Compare major lenders like Mizuho, MUFG, and SMBC, as well as internet banks like SBI Sumishin and Rakuten. Look out for campaigns or local government incentives that offer extra savings or interest subsidies.
How to get the best deal
Improve your credit profile (no missed payments, good credit card usage), borrow within your income limits, and increase your down payment if possible. Apply during seasonal campaigns (fiscal year-end, spring/autumn moving season) for better deals or interest discounts.
Understanding mortgage types in Japan
Understanding mortgage types in Japan
In Japan, home loans are commonly used for new or used property purchases, renovations, rebuilding, and land acquisition. They’re offered by commercial banks, shinkin banks, JA Bank, internet banks, and the Japan Housing Finance Agency. Loan types vary by interest structure, term, and repayment method.
Main types of Japanese mortgages
Fixed-rate loan: Interest stays the same for the full term. Great for long-term planning and predictability.
Variable-rate loan: Interest may adjust every six months. Initial rate is low but carries risk if rates rise.
Fixed-period-select loan: Fixed for 3–10 years initially, then shifts to variable or another fixed option.
Flat 35: A long-term fixed-rate loan backed by the Japan Housing Finance Agency, suitable for stable borrowers seeking predictability.
Public housing loans: Some municipalities or employers offer subsidised housing loans with special terms or lower interest.
Loan terms typically extend up to 35 years, with borrowable amounts covering 80%–100% of property value. Most require enrollment in group life insurance (dan-shin), usually included in the interest rate.
Eligibility and borrower criteria
Applicants must generally be residents of Japan aged 20–65 with stable income. Salaried employees qualify more easily; self-employed individuals must submit several years of tax filings and financial statements.
Last Update
31.3.25
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HOW TO COMPARE JAPANESE MORTGAGES: TYPES AND HOW TO APPLY
Planning to buy a home in Japan? This guide covers everything you need to know about Japanese home loans—from fixed and variable rates to Flat 35 and government-backed support systems. Learn how repayment terms work, what banks require, and how insurance like group life (dan-shin) is built into many loans. We also compare major lenders such as megabanks, regional banks, and online banks to help you choose wisely.