Getting a mortgage with unusual income sources

[anathenn]

Hello everyone!

As the titles states, I'm looking to get a home loan at a Japanese bank but I'm struggling with the screening process.
I'm currently a full time employee (2 years a my current job) but I also have 2 other income sources, digital product sales and consulting/freelance gig.
I tried contacting a few banks but they don't quite understand that my company income is not my only "stable" income and most refused to even take the side income into calculations.I have been getting regular income from these sources for 3+ years now.

I have sent them proof of taxes on the side jobs but they do not represent my full income since I write off a few things such as rent.

My question is : Did any of you get a mortgage as a freelancer or as a main job/side gig type worker?
If so, which bank did you get it at and what was the rate?

A little about me, I have been living in Japan for 8 years (4 years of university and 4 years of full time work), I do not have PR yet and I have been with my wife for about 7 years now (1 year married).I also have a 1 year old daughter.
My total yearly compensation varies between 12M-15M yen and I am looking to get a 6-8M mortgage although we are not yet sure if we want to purchase a premade house or buy land and build a new one.

Thank you all in advance and let me know if you need any other details!

[RetireJapan]

I'm guessing the loan is actually going to be more than 6-8m yen, otherwise you could just buy it in cash

[anathenn]

Oh my bad I meant 60-80M yen :p

[Ori]

I think you bigger problem is not having a PR. All banks I've applied to required PR.
All of them also had a list of documents to prepare for people who have other sources of income than salary, so it's not something unheard of.
Also, you might not need to even take non-salaried income into account if your and wife's salaries together are enough for getting the loan.

However, considering your lack of PR, your safest bet might be Flat35.

[anathenn]

Thank you for the reply!
I figured getting PR might be difficult since I have not been in Japan for 10+ years and only married last year.
When I contacted Shinsei bank and Prestia they mostly had an issue with counting my side income in the total income even when I explained the sources in details.
My company income is 4.8M and my wife does not work so the salary itself is only enough for a 3M loan apparently :s
Do you know any banks that would offer the flat35 to someone in my situation?

[RetireJapan]

Thank you for the reply!
I figured getting PR might be difficult since I have not been in Japan for 10+ years and only married last year.
When I contacted Shinsei bank and Prestia they mostly had an issue with counting my side income in the total income even when I explained the sources in details.
My company income is 4.8M and my wife does not work so the salary itself is only enough for a 3M loan apparently :s
Do you know any banks that would offer the flat35 to someone in my situation?

Unfortunately only a limited number of banks will lend to non-PR holders. They will also require a higher interest rate on the loan, and possibly be unwilling to lend you as much as they would to a PR/citizen.

Best bet would be to try to get PR first (as a spouse you don't need to wait ten years) which will give you a lot more options. Failing that get any mortgage you can then renegotiate the terms/remortgage once you get PR.

[anathenn]

It seems like the best way to proceed then.
I'll look into the PR application process.
Thanks again!

[Yokohama]

I have heard Suruga Bank may be more lenient, both towards non-PR holders (my original case) as well as people seeking a second mortgage to buy real estate. All at a higher interest rate though. Not sure if they are willing to take other income sources into account.

[anathenn]

Never heard of them, I will give them a call and ask then!

[Ori]

It seems like the best way to proceed then.
I'll look into the PR application process.
Thanks again!

If you decide to build, then choosing a builder and finding a land will probably take longer than obtaining PR, so you won't have to waste time waiting anyway.

As for Flat35, it shouldn't matter which bank you obtain through and your source of income shouldn't matter as well. AFAIK, the requirements for the loan taker are set by the government, not the bank, and as long as your income is enough and the building satisfies the conditions (not an issue for new houses), you should be OK.

As a side note, wow, your company income is 4.8M and your total income is 15M? Your side gigs are good! If you don't mind sharing, what's your occupation?