Over the years, I’ve received many questions from clients and inquiries that reflect confusion around what a home mortgage in Japan can (and cannot) be used for.
Here are the top 3 misunderstandings—and the truth behind them:
1. “Can I Combine My Car Loan with My Home Loan?”
Answer: 
No. It is NOT possible—and it’s illegal.
Some buyers ask if they can “add” their car loan or personal loan to their home mortgage and repay it all together.
In Japan, home mortgages are strictly for property acquisition only.
Trying to include unrelated debts or expenses is considered loan fraud.
• Home loan interest: usually less than 1%
• Car loan interest: typically 3% to 9%
Trying to use low-interest home mortgage funds for other purposes is not allowed and considered a crime under loan usage regulations.
2. “Can I Take Some Cash Out from the Home Loan (e.g., 2–5 million yen)?”
Answer: No. Not possible.
Even if you’re approved for a ¥30 million mortgage, you cannot receive cash from the loan beyond the exact cost of the property and legally approved expenses.
Here’s how it works:
• The home loan is transferred directly to your bank account
• Within seconds (or 1–2 minutes for large transactions), the funds are automatically used to pay the seller, agents, and other parties involved
• You never physically “touch” the money
Trying to take part of that money in cash would violate the bank’s terms—and can result in loan cancellation or legal consequences.
3. “Can I Include Furniture or Appliances in My Home Loan?”
Answer: No—unless the bank offers a separate loan product for it.
Some buyers want to include furniture, home appliances, or renovations in the same mortgage.
But unless the bank provides a special all-in-one loan (with different terms and rates), it’s not allowed.
• Some banks offer to cover property-related costs like registration, insurance, etc.
• These are still part of specific loan products, and the interest rate may be slightly higher than a basic home loan
Furniture and appliances are considered personal assets, not part of the real estate purchase.
Final Advice
Using a home mortgage for anything other than its intended purpose can lead to serious legal trouble, loan rejections, or being flagged by multiple banks.
As an independent real estate agent who works closely with both local and foreign buyers, I make sure my clients:
Choose the right loan product
Understand the legal structure
Avoid costly misunderstandings
Have questions about financing your home in Japan?
Send me a message anytime—free consultation in English or Japanese available.
Let’s make sure your path to homeownership is informed, legal, and secure！
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