First Home Buyer Guide in Japan 2026

Your First Home in Japan — Where to Start

Buying your first home in Japan is one of the biggest financial decisions you will make. The process can feel overwhelming, but breaking it down into clear steps makes it manageable. This guide covers everything from saving your deposit to collecting the keys.

Saving for Your Deposit

Most lenders in Japan require a deposit of 0-20% of the property price. The more you save, the better your loan terms and the less you pay in additional costs.

Japan uniquely allows 100% financing through the Flat 35 programme, meaning saving for a deposit is less critical than in most countries. Focus on building an emergency fund and maintaining stable employment. Clean credit records with JICC and CIC are important

Government Support for First-Time Buyers

The housing loan tax deduction (住宅ローン控除) allows deducting 0.7% of the remaining loan balance from income tax annually for 13 years on new homes. The Flat 35 programme provides 35-year fully fixed rates with 100% LTV available. Sumai-Kyufu-Kin programmes provide cash grants. ZEH (Net Zero Energy House) certified homes receive additional rate discounts

Check our government grants guide for the full list of current programmes and eligibility requirements.

Getting Pre-Approved for a Mortgage

Pre-approval tells you exactly how much you can borrow and shows sellers you are a serious buyer. In Japan, the process works as follows.

Apply for jizen shinsa (pre-screening) at multiple banks and ARUHI (largest Flat 35 provider) simultaneously. Pre-screening takes just 1-3 days and gives you confidence in your budget. Compare online bank rates (SBI Sumishin) alongside traditional banks

Use our mortgage calculator to model different scenarios before applying. Read our mortgage types guide to understand which loan product suits your situation.

Understanding the Full Cost of Buying

The purchase price is just the beginning. Budget for additional costs that can add significantly to your total outlay.

Agent commission of up to 3% + ¥60,000 (plus consumption tax). Read our buying costs guide for a complete breakdown of every expense.

Common First-Time Buyer Mistakes

Not considering the Flat 35 for its 35-year fully fixed rate security, underestimating agent commission (up to 3% + ¥60,000), not factoring in building depreciation for wooden houses (which affects resale value), and not checking for old-style earthquake resistance standards in pre-1981 buildings

Avoid these pitfalls by taking your time, doing thorough research, and leaning on qualified professionals throughout the process. Our property inspection checklist covers what to check before committing.

Your Step-by-Step Timeline

The typical first home purchase follows these stages: establish your budget and savings target, explore government support options, get pre-approved for financing, search for the right property, make an offer, complete legal due diligence and inspections, and finalise settlement.

Our property buying guide walks through each stage in detail, and our mortgage guide covers everything about financing.

Next Steps

Ready to start? Use our mortgage calculator to see what you can afford, browse Japan FAQs for quick answers, or explore our full property buying guide.