Financing a Property

Find out about the documents required when applying for a housing loan...

Buyers intending to fund their purchase with a loan/mortgage need to apply to an appropriate financial institution soon after signing the sales contract. Over recent years, Japanese banks have tended to offer loans to foreigners with permanent resident (PR) visa status. However, there are a few financial institutions offering loans for foreigners without PR.

Each financial institution has its own specific loan approval process and requirements. Real estate agents can assist the buyer by introducing suitable mortgage lenders and lending plans and by helping them through all the steps with each potential lender. Each financial institution requires the buyer to complete, sign, seal and deliver their specific loan application form.

Costs and Items Required in Applying for a Housing Loan

The following documents are required when making an application for a housing loan:

  • Jitsuin: Officially registered seal. If a foreigner doesn't have one, it can be substituted with a registered signature
  • Income certificate that certifies the total income of the applicant, from the previous year, and issued by an official institute
  • Kazeishoumeisho: Certificate of income and withholding tax, taxation certificate, or Kakuteisinkokusho, an official document that verifies the identity of the applicant (for example a final return certificate, certificate of income and withholding tax, taxation certificate)
  • Gensen-choshuhyo: Proof of income issued by the applicant's employer
  • Original copy of the seal registration certificate
  • Original copy of the certificate of residence
  • Photocopy of ID such as a passport or driving licence

The buyer pays stamp duty, a documentary stamp tax required for the loan contract.

Financial institutions normally take between two to three weeks to process the loan application. Once approved, the loan agreement is signed to finalise conditions for borrowing money.

In some cases, the sales contract has a special clause in respect to the loan/mortgage, which allows for cancellation of the contract in the event that the buyer fails to obtain a housing loan. If the buyer does have to cancel, the seller must be notified through an agent. In this case the sales contract usually stipulates that the whole deposit paid to the seller and half of the commission paid to the agent is reimbursed to the buyer.


Information provided for AngloINFO by PLAZA HOMES, LTD. PLAZA HOMES, LTD.: Your Tokyo Real Estate Partner Since 1969 Tel: +81 (0)3 3588 0131 email