So I want to buy instead of renting. I know this would be a lot easier if I had a PR but since my former company in Australia went bust after I moved to Japan I cannot prove my work history to get a HSP PR through, I am 5 points short ;( Anyway, it seems as far as I can tell only [Prestia](https://www.smbctb.co.jp/en/product/loan/housing/) offer loans to non PR residents (if anyone knows otherwise let me know). I seem to meet all requirements, but I have no clue if their loans are a ripoff or not. I do not speak financial. Are their rates ok?
They have a rate chart here: [https://www.smbctb.co.jp/en/loan/products/pdf/housing\_loan\_interest.pdf](https://www.smbctb.co.jp/en/loan/products/pdf/housing_loan_interest.pdf)
Looking at the PDF I am nothing but confused. They say the basic plan is 1.41%, but then in initial interest rates section they have lots of rates listed for that plan, some negative interest rates… What does it mean? Then there is this ” Customers who are eligible based on above conditions receive between 1.42% p.a. to 2.16% p.a. (A Plan) or between 1.22% p.a. to 1.96% p.a. ” Wait so which is it?
Also their 50million+ loan rate is dramatically better, so much so that I think I must misunderstand it. Because it makes borrowing less than 50million seem like a terrible deal, in fact borrowing over 40million costs more than borrowing 50million. That cannot be correct?…
11 comments
Perhaps go and talk to them about it?
Or a real estate agent?
Heads up about Prestia, they will only finance up to the appraised value of the property. They will _not_ allow you to finance any taxes or fees, so you would need to be ready to pay those up front.
I got a home loan through 新生銀行 without PR. They only gave me a loan for the appraised value of the home. I ended up paying about 40% out of pocket (including fees etc)
Edit: I got a floating rate at 0.49%, but they also offer 1.2% fixed. There’s also a 2% (of total loan value) 事務手数料
The negative rates you’re referring to are the discounts being applied. In the 2/3 column, is the base rate for each of the plans. Subtract the discount from that base rate, you’ll get the rates that are bolded for each plan (eg. Floating rate loans, A plan, 2.63 – 1.42 = 1.21)
I got a home loan and land loans without PR through smbc, not prestia, and was approved for a loan through MUFG as well. I have a Japanese spouse, but they refused to use any of her info on the loans and they are entirely in my name as her salary wouldn’t cover the amount or provide any benefit to the application (their words).
I’m a non-pr and got my home loan from Shinsei bank. Was less than 1 year in the country and it was really easy.
Non-PR. Shinsei. Japanese wife. 0.475% variable interest rate that covered 90% of value.
Realtor wanted to close and also owned property so they totally erased the handling fee/commission saving us over 3,000,000 yen.
Overall, as pleasant an experience as I can imagine for such a lengthy process by nature.
Non-PR here, who was able to do this.
There are a few smaller banks known to lend to non-PRs. Bank needs to have a branch in the prefecture where you live.
If you are looking to build a house, get the house builder to do the legwork for you. They will gladly help you locate a bank and discuss with the bank. If they don’t, find another builder. It’s a small thing for them to do to get your money.
And, money talks. Be prepared to put around 20% down of the total land+house cost.
Are you sure you cannot prove your work history with the Australian company?
If you have a signed letter from a manager or boss stating that you worked there from this to that day, and explaining what you did, that seems to be enough.
The company may be gone, but perhaps there is still a way to contact a former boss or so to get this?
Go talk to them. You can qualify for prestia gold based on salary to qualify for the lower rate. Around 10-12 million a year qualifies if I remember correctly.
We got our mortgage with Prestia, it was remarkably smooth; although I’m married with PR and nice in-laws. They didn’t bugger us about.
My eyes glazed over about 5 minutes in, but if I recall, the precise interest rate will be determined when they offer the mortgage loan. Everyone’s situation is a bit different. We used fixed rate for the entire 10 year period (I do not like surprises).
Pro-Tip: If you go to the Prestia loans office in Shimbashi to finalise the stuff, don’t go to the SMBC side with the bazillion logos that look a lot like SMBC Prestia’s, it’s actually the normal-looking office reception on the ground floor in the same building that you need 🙂