Do you help with financing/loans/mortgages?
Yes, based on what you need we can put you in touch with a bank who have a history of lending to people in similar situations to yourself. This may be a Japanese bank or a foreign bank, depending on the scenario. Everybody speaks english as well so no need to worry if your Japanese isn’t up to scratch.
Are multi-currency loans available?
Yes. Often you will be able to elect which currency to make repayment in. Whether or not it makes sense to choose one currency over another should best be answered by the finance officer at the bank.
It should be noted that multi-currency loans can be very high risk.
How much can I expect to borrow from the bank?
This is case by case, but in our experience a multiple of x10 your salary is a reasonable starting point.
I don't speak Japanese- is that an issue?
Maybe. Maybe not. Speaking, or at least understanding a little Japanese will enable us to put you in touch with a larger number of people (because not everybody here speaks English). If you don’t speak Japanese it doesn’t mean you’re getting a raw deal, it just means you won’t have to exchange as many business cards. This ceases to be a concern altogether when dealing with banks outside of Japan.
I’m not a permanent resident- is that an issue?
No. If you have a permanent residency visa then you may get a slightly better rate in some cases when buying domestically in Japan but this is not a prerequisite. You don’t even have to live in Japan to own real estate here.
What are the typical financing terms?
There are as many answers to this as there are banks, but most investment property deals are currently being financed with floating interest rates.
Is it possible to structure a deal with no upfront cash deposit?
In some cases it is possible to do a deal with no upfront cash, if the investor meets the eligibility requirements to do so.
What factors are important when banks assess an investor’s suitability for a loan?
When arranging financing, it is important to understand that different banks favor different investor profiles. Some don’t require any Japanese language ability and are open to investors living here on a work visa, while other banks want an investor with permanent residency who speaks and reads Japanese fluently.
At the same time, the assessed value of a property tends to differ between banks, which means that if a bank doesn’t assign a high value to a property, then a significant down payment will be required. So, when assisting you with the loan, we have to consider all these points when introducing a property and financing options.