Shinsei Bank Loan

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onemoreguyjin
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Shinsei Bank Loan

Post by onemoreguyjin »

Posted this on the Building and Renovating in Japan Facebook group but wanted to get JSL's opinion too!

Going to be applying for a loan through Shinsei Bank and I’m trying to see if I have a reasonable chance at getting the loan. Any insight or experiences are welcome! Shinsei bank is one of the only banks that doesn’t require PR, money down, or a high salary. However, their rates are higher.
-No PR but ive been in Japan for 10 years.
-No money down. Can put 1,000,000 down if needed though
-35 year loan at 1.4%
-11,500,000 yen loan on a house built in 1998 that doesn’t need any work
-The house is in the Minami Ward of Okayama City
-118.5 sqm house on a 129.51 sqm lot
-I made 4,100,000 yen last year
-Married 2 years (Japanese) with a 4 month old
-Wife doesn’t work currently
-We have a small car loan in my wife’s name
-I have a college loan from America that will be finished in maybe 3 years. it’s 250 dollars a month. (Should I even tell them about this?)
-I haven’t been late on any payments
-I am up to date on pension, insurance, taxes

This will put my monthly payment at 37,000 which is more than 10,000 less than my current rent.
I feel like I should have a good shot at getting the loan but then again…. Who knows!? Any insight would be great!
Okayama, Japan

UeNSaVOr
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Shinsei Bank Loan

Post by UeNSaVOr »

In my experience, without PR, everyone wanted 20% down or more. Most also required the building have been built (or maybe plans finalized? I'm not sure which) in 1981 or more recently, but this is fine in your case. Prestia explicitly told me as much. I think Shinsei had something similar.

I ended up giving up and continuing to rent until I get PR so I can't really say anything beyond that.

If you've been in Japan for 10 years, I'd imagine you could apply for PR which would simplify things (though take several months to a year).

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Zasso Nouka
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Shinsei Bank Loan

Post by Zasso Nouka »

Shinsei seems more likely to give a loan under those conditions than other banks and that's probably why they are a bit more expensive to balance the risk of a foreigner leaving the country.

It looks like you can easily afford the repayments, specially as they come out cheaper than your current rent so that shouldn't be a problem.

Can't say whether they will give you the loan or not as most banks seem to have a fairly opaque decision making process but would have thought you have a lot of positives going for you. Let us know how you get on with it.

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onemoreguyjin
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Shinsei Bank Loan

Post by onemoreguyjin »

UeNSaVOr wrote:
Tue Oct 19, 2021 11:13 pm
In my experience, without PR, everyone wanted 20% down or more. Most also required the building have been built (or maybe plans finalized? I'm not sure which) in 1981 or more recently, but this is fine in your case. Prestia explicitly told me as much. I think Shinsei had something similar.

I ended up giving up and continuing to rent until I get PR so I can't really say anything beyond that.

If you've been in Japan for 10 years, I'd imagine you could apply for PR which would simplify things (though take several months to a year).
Yeah, the other places I looked around they wanted around 20%. I hope Shinsei could at least do 10% with maybe a higher interest rate.

I've applied for PR but this house kind of hit all the marks on my list so I didn't really want to wait. Thanks for the insight! I didn't know about the 1981 thing.
Okayama, Japan

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onemoreguyjin
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Shinsei Bank Loan

Post by onemoreguyjin »

Zasso Nouka wrote:
Wed Oct 20, 2021 7:22 am
Shinsei seems more likely to give a loan under those conditions than other banks and that's probably why they are a bit more expensive to balance the risk of a foreigner leaving the country.

It looks like you can easily afford the repayments, specially as they come out cheaper than your current rent so that shouldn't be a problem.

Can't say whether they will give you the loan or not as most banks seem to have a fairly opaque decision making process but would have thought you have a lot of positives going for you. Let us know how you get on with it.
Yeah, I don't mind the higher interest. Because it's still so low! And that seems to be general opinion. I've heard people with like 3x my salary just getting turned down flat and then people who buy big plots of land with a house that is 50 years old and getting fully financed. It's just all over the place.

I actually called them up and told them basically all the information I posted and the lady (who was very nice) was just like, "Yeah, you can definitely apply!"

"Yes, I know I can apply but can I get at least a rough estimate? Is there a chance you would cover it 100%? Any information would be great!"

"I'm sorry, you have to apply."

I will post an update though!
Okayama, Japan