Home Loans

[6810]

Hi,

Any one out there borrowed money to buy a house or property in Japan?

If so -

a. Did you have permanent residency at the time? If no...

b. Which banks are friendly to loaning to foreigners?

c. How long were you at your current job?

d. What kind of visa were you on?

Why? Cos I want to buy a house (with my wife)

Ciao

[canman]

Yes I had my permanent residency, otherwise they won't lend to you, at least not here in Aomori-ken and I doubt anywhere else. I have my own company and had been working at it for four years. Borrowed exactly 25 000 000, got a decent interest rate and then renogotiated it a couple of years back.

[Mulboyne]

Shinsei Bank is known for offering mortgages to foreigners without permanent residency. You must be a resident, though, and have an Alien Registration Card. Their mortgage page is here and it includes an english language telephone hotline number. You'll note that in the conditions it states that foreigners without PR need to appoint a "service agent" who must be a Japanese national and must be present at the time of closing. Here are their other conditions:

• The applicant must be aged 20 or above but 65 or younger at the time of borrowing, and younger than 80 on maturity date of paying off your loan.

• Annual income (before tax) for the previous fiscal term of 3 million yen or more.

• I will reside in the property purchased within Japan .

• I will nominate Shinsei Bank as the 1st lien collateral for the property.

• The building structure is NOT on leased land.

• In the case of refinancing, no history of late repayments within the past year.

[amdg]

I'm also interested in any one else's experience. We are buying a place and have to choose between fixed and variable interest rates. We're currently leaning towards the 1.3 percent fixed for three years and thereafter re-negotiable. Anyone have any ideas about where the interest rates will be going in the next three years? Also, I'd be interested to know what the trend has been over the last 10 or so years. Ta.

[6810]

Just want to say thanks for the info.

We got knocked back earlier this month, apparently because I changed company (voluntarily, end of contract, on good terms etc) at the new academic year and my earnings records were as yet unknown (they didn't, or wouldn't take my previous year's earnings into account...).

As you know, you can't apply as a couple (double income) which is pretty rank considering if in my situation we could, my wife and I could borrow considerable money (and buy a new place).

According to one agent, the male's income is actually considered at 1.5 times what he actually earns, whereas a woman's income isn't. Is this true? Any one know about this?

If we get knocked back this time (my wife is applying, but she only earns around 75% of what I do) which is for an older, cheaper house, I guess we wait it out for six months (since I'll have demonstrable earnings) and try again with Shinsei and/or hang out until I get PR.

Any advice?

[Grumblebum]

I got a home loan at Tokyo-Mitsubishi last year with no problems. I was pretty surprised actually, because:
a. I'd only been back in Japan 6 months - no PR
b. I'd only had a full time job for 3 months.

However, things in my favour:
a. I went to the bank/branch which my company (a rather well known one) uses
b. I'd had a bank account at that bank for about 6 years from my previous time in Japan, which my salary has always been paid into.
c. The loan we asked for was only for about 70% of the value of the house - my wife and I had bought the land outright, and had already paid the deposit on the house (we are building)

The impression I got from the loan officer who looked after me was that he really wanted to be able to give me the loan, and did everything he could to 'setup' the paperwork so it would be approved. And it was..

Seems to me that company name value counts for a lot, even if you haven't been there long. Existing savings/assets also make a difference (we had a few million yen in the bank at the time of the application)
Can't offer much advice, other than that having a decent amount of savings, and not borrowing 100% of the house cost might help.

[steeny]

According to one agent, the male's income is actually considered at 1.5 times what he actually earns, whereas a woman's income isn't.

Huh?

[RAMOS]

congrats (of a sort) on your intentions to buy a house. my honey (J-spouse) and i are on the verge of doing the same. we actually had a 124-tsubo parcel of land within our grasp before the owner had a change of heart...

just after that setback (the next day, actually!), we learned that my loan was approved. i DON'T have permanent residence yet, and, from what i've heard, this was the one initial sticking point when we were screened for the loan. i work at what was a national university (since semi-privatized, so that i can no longer say, technically, that i'm a civil servant--but the perks seem to remain the same), now in my 6th year. haved a job 'til retirement. turned 44 this year, and not getting any younger. got married in 2005, but didn't start living together 'til this spring. currently on professor visa, but in the process of changing it to a spousal visa (hoping for 3-year visa from the get-go, with an eye to PR ASAP). with respect to PR, for the record, was advised against going for it too soon (by immigration officer), as a "black mark" would remain if i was denied the first time. thougt this was gonna leave me with no chance for a loan, given all i've heard and read, but must thank the job, above all, for making the right impression (well, that and the very dedicated efforts of our architect in dealing with the bank!)...

hope it works out for you. we just got word yesterday that there's another piece of land near where we found the earlier one, and saw it today in the course of an early-morning walk... will let you know how it pans out, if you like...

[RAMOS]

good advice from grumblebum, btw... a good example of doing things right, IMHO... fwiw, we're gonna take out most of the full amount in the bank loan, with another chunk courtesy of a loan through my university's lending association (paid back through monthly salary deductions of about 10,000 yen)...

[Greji]

Hi,
a. Did you have permanent residency at the time? If no...

Yes

b. Which banks are friendly to loaning to foreigners?

The Bank question is obviously important, but there are several answers. Most Japanese will tell you that you should always use your "home" bank. That is the one you primarily deal with, where your salary is sent and your savings are established. Use that Shiten of the bank. That's what I did and found them surprisingly friendly and helpful. My wife's old man who handled local government banking transactions extensively in his job, gave me this advice and it obviously makes sense if you are already their customer. Some cases if you''re using the local bank, they may know the wife's parents or other relatives, which is again a card to play.

As Grumblebum points out nicely, that can also work to your advantabe with your office's bank. It is essentially the same idea. Keep it in the family so to speak!

c. How long were you at your current job?

I've done several projects with banks at differnent times over the years, but the very first for a house was about ten years into my job and I did go into them cold. Remember J-banks are keen on the business and it is in their interest to get you qualified for a loan. You just have to meet the right points. You do not have to be a PR although that's what they really want, but if you can show the right picture of employment and residency i.e. permenent employee of a company and a long term employment prospectus, can sometimes pinch hit for PR status.

Some people will tell you many things about status or problems because you're an FG. Actually, in my dealings with banks, I've found that with exception of the actia]d. What kind of visa were you on?[/QUOTE]
Permanent Resident

Why? Cos I want to buy a house (with my wife)

Ciao

Good luck and gambatte! Don't be disappointed if you can't make it happen right away, keep plugging away at them, it's definately doable! There will also be people who try to make you quit trying and tell you it ain't worth the hassle. But the banks are more than willing to work with you and even if you don't qualify at the moment, you will later, so don't listen to the moaners and groaners.