- anawanahuananaParticipant@anawanahuananaJoin Date: 2007Post Count: 10
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.
Thanks….TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
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.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
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.voyagerMember@voyagerJoin Date: 2007Post Count: 18
yea, asia is pretty easy to do that. Note sure about the US.MITParticipant@millionaire-in-trainingJoin Date: 2004Post Count: 154boomtownParticipant@boomtownJoin Date: 2006Post Count: 5
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.TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
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:
- Hong Kong dollar (HKD)
- United States dollar (USD)
- Singapore dollar (SGD)
- British Pound Sterling (GBP)
- New Zealand dollar (NZD)
- Euro (EUR)