Flat 35: 35-year fixed-rate loans — can Vietnamese residents without permanent residency use them?
A detailed guide to Flat 35 home loans in Japan: permanent residency requirements, fixed interest rates in 2026, housing standards, and solutions for people without PR.
Aug 7, 2026·✍️ olablog·⏱ 13 min read
A detailed guide to Flat 35 home loans in Japan: permanent residency requirements, fixed interest rates in 2026, housing standards, and solutions for people without PR.
Settling down and building a career is a major dream for Vietnamese people living and working in Japan. After a few stable years of employment, many of you have probably done the math: instead of spending 70,000 to 120,000 yen a month on rent (roughly 11.5 - 20 million VND), it may be much more worthwhile to put that money toward mortgage payments on a detached house (戸建て - kodate) or condominium (マンション - manshon) for your family. When researching home loans (住宅ローン - jutaku ron), the name Flat 35 (フラット35) keeps coming up because of its fixed interest rate for the entire 35-year term. But the question that troubles many people most is: "I haven't obtained permanent residency (永住権 - eijuken) yet—can I apply for this loan?" This article from OlaChill will address each of your concerns in detail.
What is Flat 35? How the 35-year fixed-rate loan works
Flat 35 (フラット35) is a long-term fixed-rate home loan (固定金利 - kotei kinri) provided by the Japan Housing Finance Agency (住宅金融支援機構 - Jutaku Kinyu Shien Kiko - abbreviated as JHF) in cooperation with private commercial banks.
The key advantage of Flat 35 is its strong financial stability:
- Maximum loan term of 35 years: This spreads the monthly payments out to a level that better matches your household income.
- Fixed interest rate throughout the term: Even if financial markets fluctuate or the Bank of Japan (BOJ) raises its policy rate, the principal and interest you pay each month remain unchanged.
- No mandatory group credit life insurance (団体信用生命保険 - Danshin): Although JHF encourages borrowers to join the new Danshin plan (新機構団信 - shin kiko danshin), enrollment is not a mandatory condition for loan approval. This gives people with particular health histories a chance to access the loan.
- No guarantee fee (保証料0円 - hoshoryo 0 yen): Borrowers do not have to pay a costly upfront guarantee fee to bank guarantee companies.
Can Vietnamese residents without permanent residency (永住権) get a Flat 35 loan?
This is the most important question, and OlaChill's brief and straightforward answer is: According to the official rules of JHF, foreign nationals who do NOT have permanent residency (永住権 - eijuken) or who are not Special Permanent Residents (特別永住者 - tokubetsu eijusha) CANNOT take out a Flat 35 loan in their own name.
Mandatory personal eligibility requirements for Flat 35
According to the official guidance from the Japan Housing Finance Agency (JHF):
- Nationality: Applicants must be Japanese nationals.
- Foreign nationals: Must hold "Permanent Resident" status (永住者 - eijusha) granted under the Immigration Control Act. When submitting your application, you must present your Residence Card (在留カード - zairyu kado) together with a Certificate of Residence (住民票 - juminhyo) clearly showing your permanent resident status.
Extremely important warning: Some people may tell you that there are ways to "get around the rules" or use improper documentation. Be careful! JHF clearly states that if it is discovered after the loan is disbursed that the borrower did not actually hold permanent resident status at the time of signing, the entire loan will be recalled immediately (一括返済 - ikkatsu hensai). This could leave you in default or force you to sell the property at a heavily reduced price.
What options are available for people without permanent residency who want to buy a home in Japan?
If you are an engineer (技術・人文知識・国際業務 - gijutsu jinbun chishiki kokusai gyomu), business manager (経営・管理 - keiei kanri), or a family without permanent residency who wants to buy a home now, you still have the following practical options:
1. Apply jointly with a spouse who has permanent residency or Japanese nationality
If your spouse is Japanese or has permanent resident status, they can become the primary borrower (主債務者 - shu saimusha), while you act as a joint debtor or joint guarantor (連帯債務者 / 連帯保証人 - rentai saimusha / rentai hoshonin). This allows you to combine incomes (収入合算 - shunyu gassan) and increase the Flat 35 borrowing limit.
2. Consider private commercial banks
Although Flat 35 rejects applications from people without PR, some private commercial banks in Japan offer their own home loan products to foreign nationals without permanent residency. Typical conditions include:
- Length of residence and employment in Japan: At least 2 - 3 consecutive years.
- Annual income (年収 - nenshu): Usually at least 4,000,000 yen/year (~660 million VND).
- Down payment (頭金 - atamakin): Prepare at least 10% - 20% of the home's value.
- Japanese-language ability: You must be able to read and understand, and communicate about, the loan contract in Japanese.
Some well-known banks that may support applicants without PR include Suruga Bank (スルガ銀行), Aeon Bank (イオン銀行), SBI Shinsei Bank (SBI新生銀行), and Tokyo Star Bank (東京スター銀行). However, interest rates for borrowers without PR at these banks are generally higher than average.
3. Focus on applying for permanent residency (PR) first
With the points-based system for Highly Skilled Professionals (高度専門職 - kodo senmonshoku), the waiting period for permanent residency can currently be shortened to 1 to 3 years if you earn enough points. OlaChill's practical advice is to be patient and obtain permanent residency first. This will not only give you access to Flat 35 at preferential rates but also expand your options for ultra-low variable-rate loans from major banks (Megabanks) such as MUFG, SMBC, and Mizuho.
Strict technical standards for the property: the 適合証明書 (tekigo shomeisho)
Unlike private commercial bank loans, which focus primarily on the borrower's "personal creditworthiness," Flat 35 places major emphasis on the "actual quality of the property itself". To qualify for a Flat 35 loan, the property you intend to purchase must pass a rigorous technical inspection and receive a Certificate of Conformity (適合証明書 - tekigo shomeisho).
Basic technical standards for Flat 35
- Usable floor area (床面積 - yukamenseki):
- Detached houses (戸建て): At least 70 m².
- Condominiums (マンション): At least 30 m².
- Earthquake resistance (耐震性 - taishinsei): The property must comply with the New Earthquake Resistance Standards (新耐震基準 - shin taishin kijun, applicable to homes built from June 1981 onward) or have undergone earthquake-resistance reinforcement that meets the required standards.
- Fire safety and durability: The walls, roof, and evacuation routes must meet the standards established by JHF.
How much does it cost to obtain an 適合証明書?
To obtain this certificate, the buyer or real estate agent must hire a designated inspection agency to conduct an on-site survey.
- Inspection fee (as of August 2026): Ranges from 30,000 yen to 50,000 yen (approximately 5 - 8.3 million VND) for a typical house or condominium.
- Important note: If you are buying an older home (中古住宅 - chuko jutaku), not every property will qualify for an 適合証明書. Ask the real estate company (不動産会社 - fudosan kaisha) clearly from the beginning: "Can this property obtain a Tekigo Shomeisho for Flat 35?" This will help you avoid wasting time and paying a deposit on an unsuitable property.
Comparing Flat 35 (fixed interest rate) with variable rates (変動金利) in 2026
As of August 2026, Japan's financial environment has undergone noticeable changes following several Bank of Japan (BOJ) policy rate increases. The gap between Flat 35's fixed interest rate and variable rates (変動金利 - hendo kinri) means that homebuyers need to calculate their options very carefully.
Here is a general comparison as of August 2026:
| Criteria | Flat 35 (Fixed Interest Rate) | Variable Interest Rate (変動金利) |
|---|---|---|
| Nature of the interest rate | 100% fixed for the entire loan term (up to 35 years) | Changes every 6 months based on market movements |
| Base interest rate (As of 8/2026) | Approximately 3.2% - 3.3%/year (Before discounts) | Approximately 1.2% - 1.55%/year (Depending on the bank) |
| Discount programs | Flat 35S / Kosodate Plus plans available (0.25% - 1.0%/year reduction during the first 5-10 years) | Depends on each bank's individual discount policies |
| Permanent residency (PR) requirement | 100% mandatory | Most Megabanks require it; some private banks are more flexible |
| Property requirements | Very strict; an 適合証明書 is mandatory | More flexible; focuses on valuing the collateral |
| Financial risk | Zero: Monthly payments will never increase | Risk exists: Interest payments may rise if the BOJ continues raising rates |
| Guarantee fee (保証料) | 0 yen | Depends on the bank (usually around 2% of the total loan amount) |
Actual interest rates may vary depending on the loan-to-value ratio (below 90% or above 90% of the property value) and preferential discount programs for families with young children (子育てプラス - Kosodate Plus) or homes meeting ZEH energy-efficiency standards (【フラット35】S).
Who is Flat 35 suitable for, and how should you prepare your application?
Although Flat 35's advertised rates are higher than variable rates, this loan remains the ideal solution for many families because of its stability.
Who is Flat 35 best suited for?
- People who already have permanent resident status (PR) and prioritize complete financial stability, without wanting to worry about macroeconomic conditions or rising interest rates.
- Large families / buyers of energy-efficient homes: Take advantage of programs such as Flat 35 Kosodate Plus (子育てプラス), which can reduce the interest rate by 0.25% to more than 1% during the first few years, bringing the effective rate down to a highly competitive level.
- People with particular health histories: Those who want to buy a home but may have difficulty joining the standard group credit life insurance (Danshin) required by commercial banks.
- People who want to reduce their upfront costs: Those who want to save on the initial guarantee fee (保証料 - hoshoryo).
Documents to prepare for a Flat 35 loan application
Once you meet the permanent residency requirement and have chosen a property you like, prepare the following documents in Japanese:
- Identity documents:
- Residence Card (在留カード - zairyu kado) clearly showing 永住者.
- Certificate of Residence (住民票 - juminhyo) issued within the past 3 months.
- Health insurance card (健康保険証 - kenko hokensho) or driver's license (運転免許証 - untenhyo).
- Proof of income (収入証明書 - shunyu shomeisho):
- Withholding tax slip (源泉徴収票 - gensen choshuhyo) for the most recent 1-2 years.
- Tax certificate (課税証明書 / 納税証明書 - kazei shomeisho / nozei shomeisho) issued by the ward or city office.
- Property-related documents:
- Real estate purchase and sale agreement (売買契約書 - baibai keiyakusho).
- Architectural drawings and a site map.
- Technical Certificate of Conformity (適合証明書 - tekigo shomeisho).
Frequently asked questions
Q. I don't have permanent residency, but I am married to a Japanese national. Can I get a Flat 35 loan on my own?
A. You cannot be the sole borrower. However, your spouse, who is Japanese or has permanent residency, can become the primary borrower (主債務者 - shu saimusha), while you participate as a guarantor or joint debtor (連帯債務者 - rentai saimusha).
Q. I applied for a Flat 35 loan before obtaining permanent residency. What happens if this is discovered?
A. This is a serious violation of the loan agreement. Under JHF rules, if it is discovered that the borrower did not hold permanent resident status at the time of signing, the agency has the right to demand immediate repayment of the entire outstanding principal and interest in a lump sum (一括返済 - ikkatsu hensai). Be honest when preparing your application!
Q. Who pays the fee for obtaining the 適合証明書 (tekigo shomeisho)?
A. This fee (usually between 30,000 and 50,000 yen, as of August 2026) is normally paid by the homebuyer (borrower) to the technical inspection agency. Discuss this fee carefully with the real estate company advising you, as part of the initial home-buying costs (諸費用 - shohiyo).
Q. Can I apply for Flat 35 while waiting for the result of my permanent residency (PR) application?
A. You can submit an application for a preliminary assessment (事前審査 - jizen shinsa) for reference, but by the time of the official assessment (本審査 - hon shinsa) and the signing of the loan disbursement agreement (金銭消費貸付契約 - kinsen shohi kaisatsu keiyaku), you must have a Residence Card (在留カード) updated to show 永住者 status in hand.
Conclusion
The Flat 35 35-year fixed-rate loan is an excellent financial solution for helping you own your dream home in Japan without constantly worrying about rising interest rates. However, the essential requirement is that you must hold permanent resident status (永住権 - eijuken). If you do not yet have PR, consider borrowing from a private commercial bank that offers products for foreign nationals, or patiently prepare your permanent residency application to optimize your borrowing costs.
Remember to prepare carefully both your personal finances and the property's technical documentation (適合証明書) before paying a deposit. We hope you find the perfect home in the Land of the Rising Sun soon!
To discover more practical tips about life, finances, and procedures in Japan, you can also explore these other interesting articles:
- Get the latest tips on settling down and working in Japan at OlaChill Blog
- Learn more about buying a home through the detailed guide A Guide to Buying a Home in Japan for Vietnamese Residents
- Relax with your family on short weekend trips through Day Tours from Tokyo by OlaChill
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