What Japanese Banks Look for in Foreign Buyers (2026 Update)

Introduction

If you’re buying an akiya in 2026, you’ve probably asked this question:

“Can I get a loan from a Japanese bank as a foreigner?”

The honest answer is: sometimes — but only under very specific conditions.

Japanese banks haven’t suddenly opened the doors to foreign buyers, but the rules are clearer than they used to be. This post explains what banks actually look for in 2026, why most akiya buyers still use cash, and how Old Houses Japan helps buyers plan safely around these realities.

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The Short Answer (So You Don’t Waste Time)

In 2026, Japanese banks usually require:

• Long-term residency
• Stable income in Japan
• A property that holds clear market value

Most akiya do not meet these requirements.

That doesn’t mean buying is impossible — it just means financing expectations need to be realistic.

What Japanese Banks Care About Most

Japanese banks are conservative by design. They focus on risk reduction, not flexibility.

Here’s what matters most in 2026:

1️⃣ Residency Status Comes First

Banks strongly prefer borrowers who have:

• Permanent residency, or
• Long-term work visas

If you are:

• On a tourist visa
• Living overseas
• Planning part-time use

👉 Approval is extremely unlikely.

This rule hasn’t changed — and it’s the biggest barrier for foreign buyers.

2️⃣ Income Earned in Japan

Banks want to see:

• Stable, Japan-based income
• Japanese tax records
• Long-term employment history

Foreign income may be considered by some international banks in Japan, but this is rare and highly case-specific.

Most akiya buyers should assume foreign income alone will not qualify.

3️⃣ Property Value and Location Matter (A Lot)

Banks prefer properties that are:

• In urban or commuter areas
• Newer or recently renovated
• Easy to resell

Most akiya are:

• Old
• Rural
• Hard to value

Even if you love the house, the bank may see it as high risk.

4️⃣ Renovation Condition Is a Red Flag

Homes needing major renovation:

• Are harder to insure
• Are harder to resell
• Are harder to value

Because of this, many banks won’t lend on akiya at all, regardless of the buyer.

This is why cash purchases remain the norm in 2026.

So… Who Does Get Approved?

In 2026, successful foreign borrowers usually fall into one of these categories:

• Permanent residents buying in populated areas
• Long-term residents with Japanese spouses
• High-income earners working for Japanese companies
• Buyers purchasing newer homes or condos

Akiya buyers are rarely in these groups.

Why Most Akiya Buyers Still Use Cash

This isn’t a downside — it’s just how the market works.

Cash buyers benefit from:

• Faster closings
• Stronger negotiating power
• Fewer approval delays
• Less stress overall

Old Houses Japan helps buyers plan for:

• Cash purchases
• Separate renovation budgets
• Realistic total costs

This avoids last-minute financing panic.

What About Foreign Loans or Creative Financing?

Some buyers explore:

• Overseas personal loans
• Home equity loans from their home country
• Seller financing (rare but possible)

These options exist — but they must be evaluated carefully.

Old Houses Japan helps buyers understand what’s realistic and what’s risky before committing.

How Old Houses Japan Helps Buyers Navigate This

One of the biggest mistakes buyers make is assuming financing will “work itself out.”

Old Houses Japan:

• Sets clear expectations early
• Helps buyers plan around cash-first strategies
• Flags properties that would never qualify for loans
• Avoids wasted time and failed deals

This is part of what makes the buying process safer and calmer — especially for first-time foreign buyers.

Final Takeaway

In 2026, Japanese banks are:

• Stable
• Conservative
• Predictable

They’re not hostile to foreigners — but they are very selective.

For most akiya buyers, the safest approach is:
✔️ Assume cash purchase
✔️ Budget renovation separately
✔️ Avoid relying on Japanese bank financing

Understanding this upfront saves months of frustration.