Negotiating alternative home financing structures with banks in Japan (e.g. markup-based purchase instead of interest)?

Hi everyone,

I am a PR in Japan, with stable work and income. I am in my 30s, and currently looking to purchase a home. The price range I am considering is around ¥44,000,000 or max for ¥50,000,000 with a little renovation and a few other things, and currently I am reviewing financing options.

Most conventional loans here follow the standard structure which is you borrow a lump sum, repay it over 30-35 years, and pay interest (e.g. 0.5%) which adds up to about ¥2–2.5 million in interest over the loan lifetime.

This made me wonder:

Is there any flexibility in discussing with banks or financial institutions about alternative structures?

For example:

• Could the bank buy the property and sell it to me at a fixed, pre-agreed markup, repaid in installments over 35 years, effectively replacing interest with a “known total price”?

• Or is it legally or procedurally required that financing be structured through interest-based lending only in Japan?

I am not referring to early lump-sum payments or prepaying interest, but more like an alternative framework where the final repayment amount is fixed and transparent from the start, and not based on a percentage rate over time.

Curious to know:

• Has anyone attempted or discussed such models with Japanese banks?

• Are there any foreign institutions or platforms that offer home financing in Japan using non-traditional methods?

• Is there any legal reason why such alternative structures wouldn’t be possible here?

Would love to hear thoughts from those who’ve explored different financing models.

Thanks in advance!