Bank recommendations for mortgage for an old house

[Piggies]

Hello, home loan experts. I have a question for you. I just applied for a loan through Shinsei bank for an old home (built in the 1960s) in Kyoto and was rejected because *the property did not meet the criteria".

I am looking for a bank that will loan money for an old house + remodeling costs for 35 years at a fixed rate. I have permanent residency.

Any suggestions?

[Tkydon]

Aeon Bank

https://www.aeonbank.co.jp/housing_loan ... :ptlt:ihol

Then you get additional benefits, extra discounts or Waon Point on shopping at Aeon Stores...

[Piggies]

Thank you so much! I will give them a try.

[Piggies]

It appears that the issue with Shinsei Bank was the Building Coverage Ratio. I was told that other banks are not so strict. Is that true of Aeon Bank?

[mighty58]

Each bank has their own criteria and weighting. All banks will assess the underlying value of the collateral vis-a-vis the loan amount, but with Shinsei, anecdotally, it seems they are stricter than others about how they assess and/or the maximum they are willing to lend against said assessment. Other banks though, may put more weight on your personal creditworthiness (generally speaking Japanese banks love permanent employees (seishain) of big Japanese companies, or public servants, who have a work history of at least three years). When I bought my house, Shinsei offered me a mortgage but for less than the amount I asked for, while MUFG offered to loan me even more than I asked for. So you need to shop around a bit.

[Piggies]

I really appreciate the insight. Thank you for that.

Shinsei said they would be happy to give me a loan, just not for that house. They even said other banks wouldn't have a problem with that house.

I have no outstanding loans, been at the same company for 8 years and pay everything on time. At least I seem to have no issues financially. I will continue with AEON Bank and see how it goes.

[DragonAsh]

Definitely try local banks. They may well be far more willing to be flexible. Try local 信用 banks, etc.
Before I bought the house next door, I spoke to the small bank that was working with the current owner's son to sell it, and they actually were going to offer a loan at a very good rate, even though we had no plans on living there (we were going to tear it down and leave as a yard). We ended up just paying cash, but it was nice to see a smaller bank willing to be flexible for the business.