The National Australian Bank (NAB) Tokyo Branch today began retail business offering mortgages to foreigners, including Japan nonresidents from Australia, Hong Kong, or Singapore, taking collateral directly on Japanese property.
For nonresident persons from these countries, the terms look to be slightly better than Commonwealth Bank with spreads at 2% for urban residential properties with a 60bp placement fee, versus a 2.75% spread at CB. For urban properties, both will lend at 80% LTV, but for Niseko properties NAB will lend at 70 or 80% where CB will lend at 50% and a higher spread.
However, Commonwealth Bank is open to lending to persons resident in more countries (in addition to Australia, HK, and Singapore–> UK, US, New Zealand, China, Vietnam, Indonesia, Fiji, etc. wherever they have a branch).
Initially, NAB is offering mortgages for the purchase of urban (Greater Tokyo, Greater Kansai, Nagoya and Fukuoka) residential properties including investment properties, and holiday homes in Niseko.