(Disclaimer: I recognize I’m in a privileged position to be trying to do this)
Hello JP Finance, I’m reaching out in hopes someone here has advice or experience that can help me!
# The Situation
I’m looking to buy a house in Tokyo right now, and it seems that the options that have the space and features I want in the area I want to live in are in the 5000-6000万円 range. This is outside my cash range, and so to afford this I will need to obtain a mortgage loan. However, we’ve had trouble getting a mortgage approval from a bank. Without approval for the full funds, I of course can’t even put in an offer.
I have been working with a Japanese realtor from a big company to find and tour properties, and there is a 中古一戸建て in the low 5000s万円 that I was prepared to put an offer in on.
# Personal Details for Loan Application
However, we’ve had troubles getting a loan. Here are the details relevant to my loan application:
* I’m a Canadian citizen in Japan on a Working Holiday Visa. I arrived in Feb 2024, so less than 6 months ago. I intend to live in Japan for 5+ years, if not for life.
* I am a single man in my upper 20s with no partner or dependencies or existing loans.
* I can afford to pay up to \~80% down payment on 6000万円. I would prefer to go lower down payment and get a larger loan, but I’m prepared to pay my maximum down payment if necessary.
* I’m a software developer working remote for an American startup that was established around 3 years ago. I have been employed with them for 5 months. I am employed through an Employer of Record, but currently still using a WHV instead of going full-time and getting a visa sponsorship. I am a contract employee since 5 months ago.
* I previously worked at a consulting firm, where I worked with this client for \~2 years. I was a salaried employee with that company. When I was laid off from the consulting firm in Nov 2023, I was immediately hired by the client, and I have contracts proving this relationship with the client since March 2022.
* My employment history looks a bit weird by Japanese standards because I’ve been laid off twice since I started working full time in 2020 (yay tech. Not fired, just hit by layoffs in tech and video game companies). Despite that I’ve had nearly continuous work since Oct 2020. Prior to that I was in university, during which I got around 2 years of software dev work experience; in total I have 5+ years of professional work experience in Canada.
* My salary is between 1400-1600万円 (My contract with the client states the number in JPY)
* I have opened a bank account with Japan Post Yuucho, but haven’t wired any money to Japan yet. I intend to do so using a remittance service such as XE/OFX/Wise. Whichever is best at the time of transfer)
* I’m working with a realtor at Mitsui Rehouse 三井のリハウス. We communicate in Japanese, and I’m able to take phone calls in Japanese but I sometimes have trouble understanding over the phone. I can get through the long forms slowly.
Sorry if this is TMI. I’m just trying to provide all relevant details in case anyone has similar experience or can tell if for sure it’s truly impossible for me to get a mortgage loan.
# Experience with Mortgage Applications
My experience so far has been the following:
* I’ve contacted 東京スター銀行 (Tokyo Star Bank), but was denied because they don’t offer housing loans to WHV holders. Only working visa holders or PRs. (I don’t understand tbh, the [Star Mortgage](https://www.tokyostarbank.co.jp/foreign/en/products/loan/homeloan_star/) terms mention nothing about type of visa, but that’s what they told me over the phone after I applied)
* My realtor contacted two banks about a mortgage. I was denied from one because I work for a foreign corporation, which is basically non-negotiable for me right now.
* I was denied from the second because I “haven’t been working at my current position for 6 months” because I recently re-negotiated my contract in March and am now paid in JPY (i.e. they think I started my current job in March). In reality, I’ve worked for this client since November, \~5 months ago, and I’m hoping to show my relationship with the client has existed since March 2022. I’m still in this process so we haven’t figured out the results here yet. This bank seems like the closest I’ve gotten to a loan (my realtor hasn’t told me which bank this is).
So that’s my situation. Thank you to whomever reads this all. If you have any questions, please feel free to ask and I’ll do my best to respond.
Thanks for any help. Best regards.
by Dan_Chan_NA