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U.S finance for Oz property?anawanahuanana [7 Posts] Quite simply, is it possible? Are there lenders in the U.S right now that will give you a mortgage secured on a property in Australia? I know that in this scenario there are dangers with the exchange rates between currencies, but the difference in interest rates would surely negate these? Just a thought, and I'd appreciate your feedback. Terryw [6279 Posts]  There are Aussie banks in Japan that lend for Australian properties in Japanese yen -with various conditions. NAB do it and ANZ too I believe. So it is likely USA branches of the Aussie banks will do the same. Terryw   Qlds007 [3648 Posts]  Not as optimistic as Terry. There none that i am aware of. I agree with Asia and the like but not the US or UK. Cheers Richard Taylor voyager [11 Posts] yea, asia is pretty easy to do that. Note sure about the US. Eli McGeever Millionaire in ... [139 Posts]  Just a quick question boomtown [5 Posts] I have looked into this. The requirement of NAB or ANZ is that you must be a tax resident and earning an income in the offshore jurisdiction (ie Japan or USA) where the mortgage is taken out. I am not aware of any financiers that will allow you to take out a multicurrency mortgage (ie a loan denominated in USD and using a US rate of interest but secured against an Australian property) if you are an Australian tax resident. Things can get a bit scary pretty fast if the Australian dollar declines. The lenders require you to maintain a minimum LVR of 25% and recommend an initial deposit of 30%. So if the Aussie dollar drops by 10% and you are on the wrong side of your LVR you will face a margin call for the difference (ie 5% of your property value). A 20% drop would be a 15% margin call. So this is not a product for the faint hearted and you have to be pretty confident about Australian inflation remaining a threat to prop up interest rates and therefore supporting the dollar. All that being said you can get some pretty amazing rates offshore. I would be interested in talking to anyone that has been able to work a way through the tax residency issue - because if you use a foreign national to hold the property you will never get through the Foreign Investment Review Board. Terryw [6279 Posts] The St.George Foreign Currency Home Loan offers customers who may be residing either within Australia or offshore the ability to borrow funds in a foreign currency, provided their main source of income is denominated in the same foreign currency, creating a natural hedge for loan repayments. Foreign currencies available are:
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Today's TipVariable home loan interest rates bottomed at 6.05% in April 2002 <more> Active forum topicsRESULTS 2008 - 2009 Author: storerg Who's OnlineTake The Test
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