Mortgage Loan for Domestic Corporates with Foreign Capital
Applicable for real estate investors from overseas
Investors to incorporate a Japanese domestic company to purchase a real estate in Japan (KK-Kabushiki kaisha・株式会社or GK-Godo Kaisha・合同会社).
Loan application can be processed in parallel to official company incorporation.
Loan agreement formalities in Japanese and English language
Loan agreement formalities to be concluded by officially registered Representative Director, Representative or a branch General Manager.
Designated Representative (one of the above) should hold Japanese or English language skills to understand all relative agreements to be concluded.
*All documents executed or prepared in connection to the loan shall be prepared in Japanese. Any translated material shall be for reference only.
Guarantor is not necessary
*We may ask to assign a personal guarantee by Representative Director・Representative・ Shareholder(s) if determined necessary
Loan Term up to 25 years
Loan term available from 3 years up to 25 years.
Up to 35 - year amortized repayment schedule with balloon payment at maturity also available.
Terms and Conditions
- ・A joint-stock company or limited liability company established in Japan for the purpose of purchasing a property
- ・Disclosure of representative director(s) and investors with a 25% or higher stake in the company including name, date of birth (date of establishment) and registered address
- ・Representative Director or appointed manager has the ability to understand agreement details in Japanese or English
- ・Will hold a corporate bank account for repayments in Japan
- ・Satisfy other conditions and requirements specified by Shinsei Investment & Finance
|Product||Mortgage Loan for Domestic Corporates with Foreign Capital|
|Loan Purpose||Loan to purchase real estate properties in Japan|
|Loan Amount||75% of our assessed value of the property and within 100% of the sales & purchase price
*within JPY500MM per property, up to JPY1,000MM per agreement
(No. of payments)
|1 ～ 25 years (12 ～ 300 payments)
*up to 35 - year amortized repayment schedule for balloon payments*1
|Applied Interest Rate||Variable rate 2.80% ～ 3.80% p.a.
Short-term prime rate published by Shinsei Bank 1.475% + 1.325 ～ 1.725% (as of April 1st 2021)
Interest rate reviewed every 1st April and 1st October, applied from following June and December calculations
|Repayment Method||・ Monthly equal payments with interest (including balloon payment)
・ Monthly repayments due 14th of each month (next business day if 14th of the month is a holiday)
・ Repayments shall be made by automatic bank account transfers*2 from a Japanese bank or by transfers
|Establishment Charge (consumption tax inclusive)||1.10% ～ 2.20% of loan amount
*other government registration charges, legal fees, stamp duty, etc., are payable by the borrower
|Early Repayment Charge
(in part or in full)
|1.00% ～ 3.00% of the prepaying principal amount in part or full|
*we may ask to assign a guarantor if determined necessary
|Collateral||・ First mortgage right will be created over the collateral property finance by this loan
・ Collateral properties to be located in Tokyo and surrounding major cities, central Osaka, Nagoya and Fukuoka cities
・ Fire insurance policy covering the collateral property will be mandatory and first policy claim right will be granted to Shinsei Investment & Finance
|Actual Annual Percentage Rate||Not to exceed 15.00% p.a.|
|Delay Penalty Charge||19.90% (prorated on a 365-day per year)|
*1 Balloon payment: Monthly equal payments calculated in longer amortization schedule (up to 35 year), with a bullet payment of principal at loan maturity
*2 Automatic domestic bank account transfers are limited to financial institutions serviced by Aplus Co., Ltd.
Steps to Borrow
Inquiry & Consultation
Give us a call to start the process.
Share with us your investment & borrowing plans and property acquisition schedule. If property details are available, we will conduct an initial assessment to offer tentative loan amount in prior to application.
Please visit our office to fill out & chop our designated application form. Application can be arranged by post if necessary.
We will conduct our credit and property assessment upon receipt of your application form and supporting documents. Depending on the results, we may not be able to accommodate your request.
Loan & Mortgage Agreement
Along with the supporting documents, all loan & mortgage agreements to be signed & chopped at our office.
Loan will be drawdown on the day of handover.