With interest rates historically low, is now the time to buy? We analyze mortgage rates in Japan for foreigners and the requirements to qualify.

Japan has some of the lowest interest rates in the world. For foreigners living here, buying a home can be a smart investment compared to renting. Here is the scoop on mortgage rates in Japan for foreigners.

Current Interest Rates (2026 Projections)

• Floating Rate (Variable): 0.3% - 0.6%
  • Extremely low, but carries the risk of rising rates.
• Fixed Rate (Flat 35): 1.5% - 2.0%
  • Safe and stable, but higher monthly payments initially.

👉 Compare: Compare Japan Mortgage Rates: Fixed vs. Variable

Can Foreigners Get a Loan?

Yes, but it depends on your Permanent Residency (PR) status.

1. With Permanent Residency

• Treatment: Same as a Japanese citizen.
• Down Payment: often 0% to 10%.
• Banks: You can apply to almost any bank (MUFG, SMBC, Mizuho, online banks).

2. Without Permanent Residency

• Difficulty: Hard. Most major banks will reject you.
• Requirements:
  • Down Payment: Expect to pay 20% to 30% upfront.
  • Years in Japan: Usually 3+ years.
  • Language: Must be able to read/sign contracts in Japanese.
  • Spouse: Being married to a Japanese national helps significantly.

Banks Friendly to Non-PR Foreigners

• Prestia (SMBC Trust Bank): English support available, but requires high income.
• Shinsei Bank: Sometimes flexible for long-term residents.
• Suruga Bank: Famous for lending to foreigners, but interest rates are higher (2% - 4%).

Conclusion

If you have PR, Japan is a borrower's paradise. If not, be prepared for a larger down payment, but the investment can still beat paying rent in Tokyo!