Sorry for the lack of post history, using a throw away account because this post contains personal information.
I’m looking to purchase a home in West Tokyo. Very far west Tokyo, about as far as you can go. I’ve entered into an agreement with the owner of the home (via a real-estate agent) to purchase contingent on getting a loan.
However I’ve run into difficulties with the loan part. My current bank rejected it purely based on location/distance from center of Tokyo — this seems to be the norm with Tokyo’s big banks?
I’ve checked with smaller local banks, but have gotten rejected by their guarantee company. Of course they refused to say exactly why, but also stated that even if I choose a different home or location, it would still be a no, which seems to indicate an issue with me? I’ve been applying via my real-estate agent, with them handling all the interactions with the banks.
If helpful I can update with more specific numbers but, my yearly income from JP based salary (pre-tax) is roughly half the total loan amount on the application. Been with the same company more than 15 years, and with that company based in Japan for the past 6 years. I have PR. No outstanding debt or other loans.
I’m struggling to understand why I might be rejected? Or even where to go from here? Keep applying at various local banks? Any recommended banks? Is it normal for it to be difficult to get a loan on a home outside of the major cities in Japan?
For what its worth, I was pre-approved just over a year ago with Resona for double the total loan amount, but for a new build and within Tokyo23.
Thanks!
by NoWoodpecker9915
4 comments
First, the situation is *very* different for new builds vs. old houses.
Second, it’s often more about the distance from your workplace than about the distance from the center of Tokyo. How far would your commute be if your purchase was successful?
Third, securing you a loan through connections is kind of your real estate agent’s job.
The house is 50 years old, non-rebuildable, and far from your workplace. Probably they think that it’s poor collateral and are worried you will use it for an investment property.
Paradoxically it’s often easier to get a mortgage for more expensive properties which are seen as good investments (eg a new build in the 23).
BTW I was under the impression that most banks won’t lend for non-rebuildable properties so I don’t think this rejection is particularly surprising.
Why is it not rebuildable?
Question: if you are living way, way out there then presumably all of the housing is super cheap. So why not just get something without the overhang of issues? How much more is it to get a place out there that doesn’t have these issues ?
>my yearly income from JP based salary (pre-tax) is roughly half the total loan amount on the application.
Should have saved for 5 years and you could be buying the house without any loan. Being debt free is a privilege.