Can Foreigners Get a Loan in Japan? Here's How to Secure Approval (2026)

Dreaming of owning a piece of the beautiful Japanese landscape or perhaps a bustling urban apartment in Tokyo? For many foreigners, securing a loan in Japan can seem like a daunting task. The process may appear complex, but with the right information and guidance, achieving your goal is entirely within reach.

Understanding Loans for Foreigners in Japan

Securing a loan as a foreigner in Japan involves navigating through a market that can be quite different from what you're used to. Japan's financial system is known for its meticulousness and thoroughness, often requiring detailed documentation and a stable financial background. The good news is that many banks and financial institutions are open to lending to non-Japanese nationals, provided certain conditions are met.

Rates, Requirements, and Options

When it comes to interest rates, foreigners can expect a range similar to local residents, typically between 6.49% and 12%, depending on the lender and the borrower's profile. Major banks like MUFG, Mizuho, and SMBC are among the institutions that offer loans to foreigners, often with similar terms as those available to Japanese citizens.

Eligibility criteria can vary significantly between lenders. Generally, you will need:

• A valid visa with at least one year remaining.
• Proof of income, typically requiring evidence of stable employment in Japan.
• Credit history, which can be challenging if you haven't been in Japan long.
• A down payment, often around 20% of the property's value.
• A guarantor, sometimes required, especially if your financial standing is not strong.

Lender	Interest Rate	Requirements
MUFG	6.49% - 8.5%	Valid visa, stable income
Mizuho	7% - 9%	Valid visa, down payment
SMBC	8% - 12%	Credit history, guarantor

Steps to Secure a Loan in Japan

Securing a loan in Japan involves several key steps:

1. Research and Compare Lenders: Start by comparing different lenders, focusing on their interest rates and eligibility criteria.
2. Prepare Documentation: Gather all necessary documents, including visa, proof of income, and any relevant financial records.
3. Check Your Credit Score: Ensure your credit score is in good standing. If you're new to Japan, consider using services that can help establish your creditworthiness.
4. Consult a Mortgage Broker: Engage with a company like Esteb and Co, which has access to over 83 lenders, to find the best deal tailored to your needs.
5. Submit Your Application: Once you've chosen a lender, submit your application with all required documentation.
6. Negotiate Terms: If the initial offer doesn't meet your expectations, don't hesitate to negotiate for better terms.
7. Close the Deal: Once agreed upon, proceed to close the loan, ensuring all paperwork is in order.

Tips and Considerations

Here are some expert tips to consider when applying for a loan in Japan:

• Long-Term Planning: Consider the long-term implications of your investment, especially concerning currency exchange risks.
• Seek Local Advice: Consult with local financial advisors who understand the nuances of the Japanese market.
• Build a Network: Establishing a network of contacts within Japan can be invaluable for support and guidance.
• Stay Informed: Keep abreast of changes in the Japanese financial and property markets, as these can impact your investment.

Frequently Asked Questions

1. Can foreigners get a loan in Japan?

Yes, foreigners can obtain loans in Japan, though they must meet specific eligibility criteria such as having a valid visa and stable income.

2. What is the typical interest rate for a loan in Japan for foreigners?

Interest rates typically range from 6.49% to 12%, varying by lender and the borrower's financial profile.

3. Is a guarantor required for foreigner loans in Japan?

In some cases, a guarantor may be required, especially if the borrower lacks a strong financial background.

4. How much down payment is needed for a property loan in Japan?

Foreigners are generally expected to provide a down payment of around 20% of the property's value.

5. Can Esteb and Co help me find a lender in Japan?

Yes, Esteb and Co can assist with accessing a broad panel of over 83 lenders, helping you find the loan that best suits your needs.

6. How important is credit history for securing a loan in Japan?

Credit history is crucial, as it demonstrates your financial reliability. If you're new to Japan, establishing credit can be challenging but not impossible.

7. Are there any special programs for foreigners buying property in Japan?

Some lenders may offer specialised programs or terms for foreigners, making it essential to research and consult with professionals.