Getting a Mortgage in Japan

The interest rates are low in Japan and I have heard about people getting mortgages from Japan. Our credit is good. I have found several banks in Japan, but no emails. It would really help if someone could help us with this.

Best Regards,

Peter

Peter,

Am I correct in inferring that you are living outside Japan? The number one criterion for obtaining a mortgage with a Japanese bank is permanent residence status. Without that, you can basically forget it.
Also, Japanese banks still tend to operate on a face-to-face basis, so I don't think you'll get very far with email enquiries alone.

What turned us on to borrowing from Japan was our local stock channel that stated businesses were borrowing internationally as interest rates go up here in the United States. We have several rental properties with a business name so we are a business. Now we would like to do what the stock channel said business were doing and borrow overseas.

We also have no problem flying to Japan as needed.

Can you tell me who we should speak to in Japan about this? Perhaps the names of several banks, contact emails and phone number.

Any help would be greatly appreciated!

Best Regards,

Peter

You are really not going to have much luck with this unless you go through an agent in your home country who specialises in dealing with Japanese banks and real estate. As the above poster says, the main criteria for having a mortgage in Japan is permanent residence, which means living and working here for 5 to 10 years first.

Very few people in Japan speak or read English well, including those working at banks. You could not just randomly phone a bank and expect to find someone who could deal with you.

Thanks for the replies so far everyone!

The problem is that anyone selling mortgages here in the status would likely charge a rate similar to that of the going market.

It is easy enough to have a translator during a phone call to a Japanese Bank. Could one of you or someone else give me the phone number to 2 to 3 banks in Japan. Any help would be greatly appreciated!

Again, Thanks,

Peter

You are still missing the most important bit of information, i.e. you are not a Japan resident, but if you're that determined, then good luck.

If your idea works, everyone will be borrowing money from Japan and putting it into a US bank to earn the interest difference.

I would imagine without some dodgy business scheme planned from this point onwards you might not get the mortgage required!? :)

I'm looking for the exact same information concerning Japanese lenders for US mortgages. Hedge-funds are exploiting this through what is called a carry trade...where 0% interest loans in japan are held in US treasuries to collect the coupon. It must be possible for mortgages...good luck and post w/ new info. thanks

Peter have you had any luck? Karan is clear that you must be a resident but I wonder if at some time the rules will change. You�fre certainly allowed to invest in their country.

Thank you for your response.

At this moment, United States businesses have low interest loans from Japan. However, the US embassy in Japan won't return by messages in regards to this email. Looks like I need to move up the proverbial corporate ladder.

If you have any ideas, please let me know.

Thanks,

Peter

hi Peter, I am interestd to find out if you find anyway to borrow money from any Janpese bank ?

How much do you need?

Thanks,

Peter

Peter - I have also been thinking about this idea and stumbled upon this website. My friend is an investment banker and is fluent in Japanese and he is checking on this concept for me. I will keep you posted and please do the same for me. Thx-- Tbonne

The concept you speak of is the carry trade and of course the biggest risk is curreny exchange flucuations

http://news.yahoo.com/s/afp/20070305/bs_afp/forexus_070305223159

Cheers,

George

What is the best and easiest way to form carry trades?

I have heard some interesting information from several friends.

Peter

Peter - As far as I understand it, a carry trade is where you short the yen (borrowing yen you don't have to sell) then you take these proceeds and invest elsewhere ie. US treasuries, stocks, etc. However the exchange rate risk can come back to bite you which is what has been happening lately with the global markets where investors are selling there positions to cover their yen short. So like everything, the idea of borrowing money from Japan at low interest rates to buy real estate sounds great but the devil's in the details.

Is it as simple as opening a trading account with a broker, calling up an institution in Japan, or ....?

Thanks,

Peter

Talk to HSBC in HK they can arrange Yen mortgage loans for Australia and the USA. However you will need to be a resident of Japan OR have a Japanese bank account. You could probably wrangle it to get a bank account – for example with Citi – and just funnel money as needed. However the biggest risk is exchange rates fluctuations.

http://www.ecugroup.com/?gclid=CNjLmvOR4I0CFQKOgAodjyr3aA

Have a look at the link above they seem to be offering the service you require

Yes, that looks like what I am looking for! Thanks!

Peter