2025-06-15

Some foreigners with mortgage loans may be considering applying for naturalization. They may be worried that their current loan may work against them when they apply for naturalization. Others may hope that naturalization will make it easier for them to obtain a mortgage loan. Here, we will explain the relationship between naturalization and mortgage loans.

What is naturalization?

Naturalization is the process by which a foreigner who currently has a status of residence in Japan acquires Japanese citizenship. In other words, they become Japanese citizens, which is a much coveted status for those who are planning to live in Japan permanently.

Does having a mortgage disadvantage my application for naturalization?

If a person who is already living in Japan and has status of residence has a mortgage, will it be a disadvantage in the application for naturalization?

Among the conditions under which an application for naturalization is approved are “living conditions”. Specifically, the applicant must be able to live on the assets and skills of his/her spouse or other relatives with whom he/she shares a common livelihood. Therefore, if you or your relatives have assets, skills, or qualifications to earn a living, it will work to your advantage.

So, is it possible to apply for naturalization even if you have a mortgage? If you still have other loans, such as car loans, education loans, or scholarships, it is not a problem to apply for naturalization.

However, if the monthly amount you are currently repaying is large, this may be a problem. Of course, if your repayments are small compared to your monthly salary, then you will not have a problem making ends meet. However, if the amount of repayment is so large that it puts pressure on your livelihood, it may be questioned as to whether you will be able to continue living in Japan in the future, and this may work against you.

Will naturalization make it easier to obtain a mortgage?

If my application for naturalization is approved and I acquire Japanese citizenship, will it be easier to obtain a mortgage? As it turns out, it will be easier to obtain a mortgage, car loan, and other loans.

As we have already explained, when a foreigner with status of residence becomes a naturalized citizen, it means that he/she becomes a Japanese citizen. Therefore, it is obvious that it will be easier to obtain a mortgage loan than before.

If you become a naturalized Japanese citizen and take out a mortgage loan, you will need to submit much fewer documents for examination than if you had taken out a mortgage loan before becoming a naturalized Japanese citizen, and the burden should be considerably reduced. The main concern of the examiners is that the borrower will be able to repay the loan every month without delay.

For this reason, a constant monthly salary is a prerequisite, but it is equally important that the applicant’s identity is solid. One element of this is Japanese citizenship. This is by no means a discriminatory attitude on the grounds that you are not Japanese, but it is just seen as an important factor in your ability to repay the loan.

summary

Even if you currently have a mortgage, as long as it is not unreasonable to repay it, it is unlikely to work against you in your application for naturalization. It is also possible that your application for naturalization will be approved and you will acquire Japanese citizenship, which will make it relatively easier to obtain a mortgage loan.