It sounds like a good deal to me too. Even with currency fluctuations you could come out on top.

For you to start losing money on a 700K loan the exchange rate would need to fall to around A$0.52 on an interest rate of 4% if you include approximated fees and assume our rates stay around 7%.

Also if you are smart about paying back more money when rates are good then you should do well. If our interest rates however fall along with a fall in the dollar then you would start to lose money much sooner.

If anyone knows of US banks loaning to individuals outside the US for residential property I would also like to know. I beleive some of the smaller banks may consider it. Hubby and I have to consider all options as we have lost an income to have one of us stay at home with the kids for a few years.

JM