Getting a mortgage with unusual income sources

[goodandbadjapan]

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.

I originally got my mortgage with them. Had no PR and had started my business less than two years previously. Buying the house would also require me to move that fledgling business with the potential loss of students so I was a bit of a risky prospect. Did put a few million yen down in a downpayment, though. They wanted a promise I would apply for PR as soon as I could and also said they would renegotiate once I had it. The original rate was 2. something % and they did bring it down to 1. something (can't remember exactly). This was 17 years ago. I later changed banks though for a better rate and Suruga was caught up in some kind of problems later - I can't remember the details but I think it was something to do with (commercial?) loans rather than everyday mortgages. But all said and done, they took a punt on me where others wouldn't, the rate wasn't great but they did renegotiate as promised, and I still actually do have a regular bank account with them.

[anathenn]

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?

Yeah that's probably the best way to go forward!
We are looking at lands and building costs right now and will probably need 1-2 year to see the end of it.Best time to apply for PR I guess :p

So the requirements are set by the government? I did not know that! I thought each banks had their own level of safety so it was a bit of struggle calling them one by one to confirm.I should have posted here earlier.

That's right! I'm working on getting better company salary but going past the 5M mark in Japan seems hard.
I'm a 3D artist and both my side jobs are related to 3D! I wouldn't say company work is really lucrative in the game industry but the potential for online side work is there

[anathenn]

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.

I originally got my mortgage with them. Had no PR and had started my business less than two years previously. Buying the house would also require me to move that fledgling business with the potential loss of students so I was a bit of a risky prospect. Did put a few million yen down in a downpayment, though. They wanted a promise I would apply for PR as soon as I could and also said they would renegotiate once I had it. The original rate was 2. something % and they did bring it down to 1. something (can't remember exactly). This was 17 years ago. I later changed banks though for a better rate and Suruga was caught up in some kind of problems later - I can't remember the details but I think it was something to do with (commercial?) loans rather than everyday mortgages. But all said and done, they took a punt on me where others wouldn't, the rate wasn't great but they did renegotiate as promised, and I still actually do have a regular bank account with them.

In your situation it does sound like they were a lifesaver!
I'm in no hurry to purchase anything quickly so the 2% seems a bit high unless I really can't find anything.
How was the mortgage transfer process? all the paper work for getting a mortgage scares me already so I can't imagine dealing with two banks haha

[goodandbadjapan]

I'm in no hurry to purchase anything quickly so the 2% seems a bit high unless I really can't find anything.
How was the mortgage transfer process? all the paper work for getting a mortgage scares me already so I can't imagine dealing with two banks haha

2% was high but not outrageously so as it was only for a year or so. It was still high after the renegotiation and that's why we changed bank. Wasn't too hard - the bank we were transferring to did most of the work and we just signed a few bits of paper as far as I remember. But as others have said, PR will definitely make things easier!

[Ori]

So the requirements are set by the government? I did not know that! I thought each banks had their own level of safety so it was a bit of struggle calling them one by one to confirm.I should have posted here earlier.

Only for Flat 35, as it is a government program for providing affordable loans for regular people. I think the only difference between the banks providing this type of loan is their commission (at the moment the cheapest one seems to be 優良住宅ローン).
As for the other types of loans, you are correct - each bank has their own requirements.

That's right! I'm working on getting better company salary but going past the 5M mark in Japan seems hard.
I'm a 3D artist and both my side jobs are related to 3D! I wouldn't say company work is really lucrative in the game industry but the potential for online side work is there

Ah, gaming. There are probably very little gaishikei in this field (if any). Japanese companies indeed don't pay well. Things might be different with some startups, though.
However, considering that your income from side work is higher than salary, I would probably ditch the company work altogether and concentrated on freelancing

[anathenn]

So the requirements are set by the government? I did not know that! I thought each banks had their own level of safety so it was a bit of struggle calling them one by one to confirm.I should have posted here earlier.

Only for Flat 35, as it is a government program for providing affordable loans for regular people. I think the only difference between the banks providing this type of loan is their commission (at the moment the cheapest one seems to be 優良住宅ローン).
As for the other types of loans, you are correct - each bank has their own requirements.

That's right! I'm working on getting better company salary but going past the 5M mark in Japan seems hard.
I'm a 3D artist and both my side jobs are related to 3D! I wouldn't say company work is really lucrative in the game industry but the potential for online side work is there

Ah, gaming. There are probably very little gaishikei in this field (if any). Japanese companies indeed don't pay well. Things might be different with some startups, though.
However, considering that your income from side work is higher than salary, I would probably ditch the company work altogether and concentrated on freelancing

Oh I see, the flat 35 is sort of like a government program to help people get a house.
I'm definitely looking at a fixed 35 year loan so I'll probably go with that one!

I think if you speak Japanese there are quite a few opportunities in gaming but yeah the pay is rarely great unless you have a lot of experience.
Gaming startups do not pay well at all but tech startups using 3D (VR/Blockchain stuff) tend to offer nicer compensations.
Also there are some good translating/outsourcing positions in bigger game companies for those with no technical 3D skills.
It's really all about luck here and finding a place that likes to recruit foreigners :p

That's the plan but I'm still worried about not getting a loan unless I got the 2-3 years at the same company that every bank seem to care about.
I think I'll get PR while looking for a land to build on and once the loan goes through I will change jobs/go freelance.
I'm somewhat risk averse so this might be best haha

[Tokyo]

We had a great experience with Suruga too. They were willing to give us a loan even though we admitted from the outset that we were only using them as a cheap bridging loan until we sold other property. And as promised, there were no penalties/additional costs when we repayed early. Although I have PR, other banks would not consider my application since I am retired.

Suruga also have really personable staff who patiently rode 2 hours, one way, on the Shinkansen to fix a form in which the dumb gaijin wrote his name incorrectly. A very satisfied customer!