Age requirements / limit / common sense for getting loan?

[solo7100]

I assume banks look at the age of the person applying for a mortgage, but I don't know any details of what they look for or how.

Approaching 50 years old, about 6mil a year stable salary, PR, no debt, can afford maybe about 100,000 a month for repayment purposes.

To me, a bank would say, "You'll most likely be gone before the loan is paid, so....no."

But what say ye? Any experiences of types and lengths of loans possible in this scenario (if at all)?

[RetireJapan]

My under standing is that loans need to be paid before 75, so you could probably get a 25 year one.

Did you hear our RJTV episode with Emil? We talked about mortgages in Japan

https://youtube.com/live/n-N1fwNge4c?feature=share

[Tkydon]

Maybe the best thing you could do is go to a bank such as Aeon Bank, Prestia or other, present them with the information about your assets, employment history, current income, current rent, rent you think you can afford, and how much of a down payment you think you can make, and ask them to do a pre-aproval, and advise the maximum loan you might qualify for, assuming you made a down payment of X%.

The bigger your down payment, the more likely they may be to approve the loan as the loan-to-value ratio will be lower, and therefore their risk is lower in case of default.

Assuming the property is larger than 50 sq.m and is you primary residence, you should be entitled to the Home Loan Tax Relief.

The rest will depend on many factors; actual property, deposit amount, loan to value, and so on.
You may find that one financial institution is not willing to lend, but another is, based on their internal criteria, current loan book, diversity, etc., so you may have to shop around.
If the Seller or Agent has a good relationship with a financial institution, they may offer favorable terms.
If you are working for a company, and the company has a good relationship with a financial institution, they may offer favorable terms.

Guestimate...
5 times Salary is probably not unreasonable or unaffordable.
A conservative lender may offer 5 times salary for 25 years, or about 5 x 6mil = Y30M (a higher multiple for longer duration loans)
At say 0.5% for 10 years fixed on a 25 year Y30M loan, you may have a monthly payment of just about Y110,000 per month,
not including Kotei Shisan Zei - Fixed Asset (Property) Tax, which might be around Y80,000-Y100,000 per year in 4 quarterly payments of Y20,000 to Y25,000 per quarter
or Monthly Management Fees for a Manshon.
Japanese Banks can do a calculation based on 12 monthly payments, or 14 payments per year with a lower monthly payment and two payments at Japanese summer and winter bonus times.

You may need to shop around.

[Teflon]

I got my home loan with Prestia. They told me the loan had to be paid off by age 80. Based on that, I could easily qualify for the full 35 year mortgage. They just wanted to see my "body check" report which my company forces me to take every year. So I submitted that and everything was approved.

[RetireJapan]

Assuming the property is larger than 50 sq.m and is you primary residence, you should be entitled to the Home Loan Tax Relief for a maximum of 10 years.

I thought this was 0.7% of the loan for 13 years now, or did I misunderstand that?

[Tkydon]

Assuming the property is larger than 50 sq.m and is you primary residence, you should be entitled to the Home Loan Tax Relief for a maximum of 10 years.

I thought this was 0.7% of the loan for 13 years now, or did I misunderstand that?

Thanks for the correction. They keep changing everything

[Kiro]

Both of you may be right. Wasn't it 13 years if the house is new (with ZEH/low consumption/eco features) and 10 years if a second hand one?

@solo7100
I was in the same situation as you, and I got close to 35 years. The bank required it to be fully paid by the 80th birthday, so I applied back then for a 34y and some months loan.
You can always try some online pre-review 事前審査 using a reasonable budget in order to see if you can pass the pre-screening. I did this before even finding a house in order to get ready to show it when I found the one.
The result usually stays valid for 3~6 months, depending on the bank, and if you find a house you like you may show it to the agent, to reassure the seller that a potential buyer already passed pre-screening (which may help if the seller wants to close fast).