The topic we would like to discuss today is related to the process of applying for a mortgage loan in Japan for non-Japanese residents.
After completing the initial steps like finding your dream house, negotiating the terms and price with the help of your real estate agent, the next step is to apply for a mortgage loan in Japan. In case of buying a property, customers want to get a stable loan with the sustainable payment rate from banks. To be able to get a mortgage loan in Japan, the first thing you need to do is to ensure the bank that you are capable of paying the mortgage. Of course, banks have their methods of determining whether you are suitable for a loan or not. However, it is your and your Real Estate agent’s duty to convince the bank of your paying capability with corresponding documents. Hence, the documents listed below play an essential role in determining the amount and duration of the mortgage loan in Japan. Of course, in the process of signing the contract, you might need to submit some additional documents as well. The following list reflects the core documents that will serve as evidence for your earning ability, household income, and Japanese residency.
Here are the seven documents and one object that you need to submit to proceed with the application for a mortgage loan in Japan:
1. 源泉徴収票 (2年分)または決算書 (2年分) –
Withholding Tax Certificate OR Set of Financial Accounts (for
the last two years)
These documents are necessary for checking the income level, by which bank decides the probable amount of mortgage loan in Japan. The difference between the two papers is that Withholding Tax certificate is issued by the company in which you are working. However, if the person is self-employed, then one must get the other document – Set of Financial Accounts.
2. 住民税課税証明書 (2年分)または給与所得等に係る特別徴収税額
の決定通知書 (2年分) –
Residential Tax Certificate OR Deduction Certificate (for the
last two years)
The following certificates show the amount of money deducted over the years. Banks see these documents as a proof of income, by which they will decide the amount of mortgage loan in Japan.
The “Residential Tax Certificate” can be issued from your local City Hall.
For the second paper – “Deduction Certificate“, you need to make an inquiry to your employer.
3. 在留カード –
Residence Card as the Identification Document.
A foreign person who stays in Japan for 90 or more days needs to register at the Immigration Bureau. After the registration procedure, you will get a Residence Card, which you need to carry with you all the time. It is the Identification Document that proves the legal grounds for your stay in this country. It contains your personal information such as photo, name, address, visa status, date of expiry and others.
This system was introduced in the 2012 and replaced Alien Registration Card system. The new system let the authorities to more accurately track resident status than previously, making it possible to introduce measures that improved the convenience of foreign nationals in Japan. For example, currently, the maximum period of stay is extended to five years instead of the previous three years. This document is also essential for a mortgage loan in Japan.
4. パスポートまたは運転免許 –
2nd Identification Passport OR Driving Licence
To ensure your residency, you need to submit additional Identification Document to apply for a mortgage loan in Japan. It can be either your Passport or Japanese Driving Licence. Please be careful, because your country`s driving license is not relevant.
5. 住民票 –
Certificate of Residence
You will be asked to submit this document to help the bank to make sure that the address stated in your Residence Card is the same as in the Certificate of Residence.
6. 保険証 –
Health Insurance Card
7. 返済予定表（借金がある場合) –
Repayment Schedule (in case if another loan exists)
For example, if you already have a credit from another bank, you need to submit its Repayment Schedule. The bank wants to be sure that you are making payments without any delay. This document will help to decide whether you can pay another credit or not. Credit card`s repayment schedule submission is not required in case if you are making payments on time.
However, if any of the credit card`s banks blacklisted you, it is necessary to mention this during the application process because it will be discovered sooner or later. This is essential information that can not be kept a secret if you are planning to apply for a mortgage loan in Japan. In Japan, there is a number of credit card information agencies. Banks usually check the applicant`s background through these companies databases. In case if you were blacklisted in the past and currently engaged in the recovering process, then you still have a chance to get a loan. Therefore, it is worth to be careful when submitting each document. It must reflect recent and accurate information about you.
8. 実印と印鑑証明書 –
Registered Hanko / Inkan (Seal) and its certificate
In Japan (and other Asian countries), people traditionally use Seal – Hanko / Inkan instead of a signature for acknowledging, singing and accepting documents.
Usually, there are two types of Hanko:
- For casual, informal acceptance “認印” – Mitomein
- The “true” registered seal “実印” – Jitsuin
The first one is a casual non-secure seal that can be used, for example, to sign a received parcel.
The second type people usually use for more essential processes like signing a contract for a mortgage loan or a business loan.
For all major transactions, additionally, it is necessary to submit the “Seal Registration Certificate” that has your full legal name on it.
This will be all for the core document list that is necessary to proceed with the property purchase. If you need any additional information, you can always contact us. We will be happy to assist you with the property purchase process. We hope this information will be helpful for people who are involved or considering moving to a new place.