All Topics / Finance / Japanese Banks for Aussie Mortgages

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of streamlineinvestingstreamlineinvesting
    Participant
    @streamlineinvesting
    Join Date: 2010
    Post Count: 171

    I have seen a couple of forum posts about foreign banks providing mortgage finance on Australian property, and particular with the influx of Japanese banks to our shores it has become a bit of a talking point. Now I do not believe this will have much of an impact on the overall economy with regards to mortgages, but I just want some first hand experience and knowledge on the matter.

    A colleague of mine at work was able to get a mortgage with a Japanese bank for the interest rate of 3.50%, unfortunately I only met him for the day and will not be seeing him again, so although I wish I could ask him a multitude of questions about this, I am at a loss. I would appreciate it if anyone had some first hand experience with obtaining foreign finance, preferably from a Japanese bank, or could put me in touch with a contact such as a broker that deals in this sort of area then it would be greatly appreciated.

    Thanks
    James

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Many years ago I lived in Japan and the NAB in Japan was offering loans to purchase Australian property in Yen or dollars. Max 70% LVR with rates about 3%. The trouble is the loan was only available for those living and working in Japan and if you ever left Japan the loan would need to be renegotiated or refinanced.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    mattnz
    Participant
    @mattnz
    Join Date: 2007
    Post Count: 574

    Hi James, was the loan in Yen or AUD?

    If it was in Yen, you want to make sure that you obtain the loan when the AUD is much weaker than it is now.

    Profile photo of streamlineinvestingstreamlineinvesting
    Participant
    @streamlineinvesting
    Join Date: 2010
    Post Count: 171

    The loan was in AUD, that is one thing I would have to ensure on. The last thing I want to do with an investment property is add currency exchange risk to the investment, there is plenty of other investments having to try to mitigate.

    Profile photo of Don NicolussiDon Nicolussi
    Participant
    @don
    Join Date: 2005
    Post Count: 1,086

    James – does he work in Japan or work in OZ?

    Don Nicolussi | Mortgage Broker - Home Loan Warehouse
    http://homeloanwarehouse.com.au
    Email Me | Phone Me

    "I think of finance as a technology, a way of getting things done." Robert Shiller

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    There is no Australian based lender who will take Australian property as security yet lend in another currency where the applicants is earning AUD.

    St George used to offer a Foreign Currency loan but was withdrawn a few years ago.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of streamlineinvestingstreamlineinvesting
    Participant
    @streamlineinvesting
    Join Date: 2010
    Post Count: 171

    He works in Oz, up in QLD with me, and he has no Japanese heritage (unless his wife is Japanese but I do not believe so).

    And thanks Richard, but I was not asking about an Australian institution to lend foreign currency, but good to know nonetheless.

Viewing 7 posts - 1 through 7 (of 7 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.