Japan Mortgage for Foreigners (2026): Banks, Rates, and the Flat 35 PR Rule

Information current as of May 2026 based on each bank's public eligibility text and FAQs, the Flat 35 utilization conditions, the Japan Housing Finance Agency (JHF) FAQ #308, and the Bank of Japan policy rate decision (December 19, 2025).

Buying a home in Japan as a foreigner is realistic — the legal framework does not bar foreign ownership of real estate. The hard part is financing: Japanese banks underwrite mortgages with much less flexibility than U.S. or European lenders, and the rules are scattered across each bank's individual product pages. This guide consolidates them.

The big change: Flat 35 is no longer a non-PR option

This is the single most important update in the 2026 foreign-resident mortgage landscape. Multiple older blog posts and even some practitioner pages still claim "Flat 35 is the easiest path for foreigners without PR." That is no longer accurate.

The JHF FAQ #308 — the official rule from the Japan Housing Finance Agency that backs Flat 35 — requires applicants to be:

• Japanese nationals, or
• 永住者 (permanent residents), or
• 特別永住者 (special permanent residents)

Foreign applicants must submit their 在留カード or 特別永住者証明書 plus 住民票. The legal authority cited is 出入国管理及び難民認定法 §22(2) / §22-2(4). And critically: if PR status is later found to be absent, the entire loan must be repaid in a lump sum (一括返済). This is a serious clause — if you applied with PR pending and were granted Flat 35 by error, the bank can call the entire loan.

The same rule applies to SBI Aruhi (the largest Flat 35 originator), per their FAQ #1013.

Bank-by-bank policy (2026)

The lenders below have public policies regarding foreign-resident eligibility. Verify on the live page before any application — these change without industry-wide notice.

Lender	PR required?	Notes	Source
SMBC Trust Bank PRESTIA	No	Mid/long-term 在留資格 OK; income ≥¥10M; English communication accepted	FAQ #144
Tokyo Star Bank (スター住宅ローン)	No	正社員 ≤40 / income ≥¥3M, OR ≥40 / income ≥¥4M; rate 1.40–3.00%	Product page
SBI Shinsei Bank	No, with Japanese-spouse co-signer	Spouse must be Japanese or PR-holder + join as 連帯保証人	FAQ #563
Suruga Bank Dream-J	No	Eligibility centers on Japanese-language docs comprehension	Dream-J
Asuka Shinkumi	No	Tokyo-area shinkumi; dedicated 永住権のない外国籍 product	Asuka product
Sony Bank	Yes	"Foreigner-friendly UX" reputation refers to English support and multi-currency, not PR-waiver	Sony Bank
Mizuho	Yes	Standard housing loan: Japanese or PR only	Mizuho FAQ
MUFG	Generally yes	Practitioner-reported exceptions (Japanese spouse, 5+ years in Japan, 3+ years at same employer) — verify at branch	Practitioner-reported, not on MUFG product page
SMBC (三井住友銀行)	Generally yes	Standard product targets PR holders; case-by-case for non-PR with strong profile	Practitioner-reported
Flat 35 (JHF)	Yes	Japanese, 永住者, or 特別永住者 only	JHF FAQ #308

The 2026 rate environment

For most of the last three decades, Japanese mortgage rates were stunningly low — variable rates around 0.4%–0.6%, fixed rates around 1%. That era is over. The Bank of Japan raised its policy rate three times in 2024–2025, ending at 0.75% on December 19, 2025 — a 30-year high (per the BOJ policy decision document).

What this means for buyers in 2026:

• Variable rates at major banks rose from ~0.4% (2024) to ~1.0% (early 2026)
• 10-year fixed rates are now around 1.5–2.0%
• Flat 35 35-year fixed is around 2.0–2.5% depending on down payment
• The forecast consensus (e.g., ESPフォーキャスト) projects the policy rate around 1.0% by end of 2026

The 30-year-historical "always pick variable" advice no longer applies cleanly. For 35-year mortgages in particular, the calculus has shifted toward fixed-rate or hybrid products. SBI Shinsei's 2026 rate outlook column covers this in detail.

Down payment expectations

No bank publishes a "minimum down payment for non-PR" rule on its product page. The 20–30% figure that appears across multiple practitioner sources is consensus, not policy. A summary by profile:

Buyer profile	Practitioner-consensus down payment
Japanese national + stable employment	0–10%
PR holder + stable employment	0–10%
Non-PR + Japanese spouse + ≥3 years tenure	10–20%
Non-PR + ≥5 years in Japan + stable employer	20–30%
Non-PR + self-employed	30–50%
Non-PR + recent arrival	Often declined regardless of down payment

Above the down payment, you also need cash for: registration tax (登録免許税), stamp tax (印紙税), 不動産取得税, broker fees, and 司法書士 fees — typically another 5–8% of property price.

Documents needed at application

• 在留カード (both sides) + passport
• 住民票 (with all family members listed)
• 源泉徴収票 (last 2 years) for employees, or 確定申告書 (last 2–3 years) for self-employed
• 住民税課税証明書 from your municipality
• Bank statements (3–6 months)
• Employment contract or 在職証明書
• Property purchase contract (重要事項説明書 + 売買契約書)
• For non-PR: 永住申請の状況 if applicable (some banks treat 申請中 favorably, though it does not bypass the formal PR requirement at PR-only lenders)

住宅ローン控除 (housing loan deduction)

Foreign residents who file Japanese income tax can claim 住宅ローン控除. Eligibility hinges on 居住者 status, not nationality. Key NTA references:

• NTA Tax Answer 1211-1 — 住宅借入金等特別控除
• NTA Tax Answer 1213 — 住宅借入金等特別控除の対象となる住宅ローン等
• NTA Tax Answer 1234 — 非居住者期間がある場合の取扱い

You must move into the property within 6 months of acquisition and continue residing through December 31 each year. If you become 非居住者 mid-year (e.g., extended overseas assignment), the deduction stops for that period. A narrow exception exists if a 生計を一にする親族 continues to reside in the home (for acquisitions on or after April 1, 2016).

The mortgage application timeline

Step	Typical timing
Pre-screening (事前審査) at chosen bank	3–7 days
Sign 売買契約 with seller (after pre-approval)	1 week from pre-approval
Formal application (本審査)	2–4 weeks
Loan agreement signing	~1 week after approval
Disbursement and property handover (引き渡し)	Same day as loan agreement
Total from pre-screening to keys in hand	~2–3 months

The mortgage paperwork is dense, all in Japanese, and signed at the bank in person. If your Japanese isn't strong enough to follow a 重要事項説明書 walkthrough, that's a real friction point. Posting on LO-PAL connects you with a local Japanese person who can review the documents in advance, sit in on the bank meeting, and translate as needed. Free to ask; you only pay if you accept task help.

If your visa status changes mid-loan

What happens if your job changes, your visa expires, or you leave Japan during a 35-year mortgage? The answer is bank-specific:

• Visa renewal: Banks generally do not re-screen during the loan, but most agreements require you to notify them of major changes (employer, address). Sony Bank specifically restricts transactions if 在留カード is not updated.
• Job loss: Continue payments. The bank does not call the loan unless you actually default.
• Departure from Japan: Some banks require full repayment if you become 非居住者. Others allow continuation with a Japanese spouse or family member as point of contact. Confirm before signing.
• If non-PR found at audit: Flat 35 specifically calls the loan in this case. Make sure your underwriting status is correctly stated.

Refinancing as PR is granted

One useful pathway: take a non-PR product (Tokyo Star, PRESTIA, Suruga) early, then refinance to a lower-rate PR-only bank (Mizuho, Sumitomo Mitsui, Sony Bank) once PR is granted. Tokyo Star explicitly mentions a possible rate reduction after re-screening when PR is obtained, per the スター住宅ローン product page.

Refinancing typically costs 1–2% of the remaining balance in fees (registration tax, broker, 司法書士). It's worth the friction if the rate differential is 0.5%+ over a 20+ year term.

Related articles

• Credit, Loans, and Mortgages in Japan for Foreigners (2026)
• Buying a Home in Japan Without Permanent Residency
• Japan Permanent Residency in 2026
• Credit Bureau Disclosure Guide

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