Can AU resident get loan from OS for PPOR???

Viewing 6 posts - 1 through 6 (of 6 total)

hoarel
Participant
@hoarel
Join Date: 2003
Post Count: 39
October 6, 2009 - 12:08 pm
Hi All,
With rates rising in AU, am wondering if there was any way to get a home loan from overseas for my PPOR?
Can't believe we have to pay 5%+ when other countries are probably lucky to be at 2%!!!!
Any thoughts welcome. I am thinking there is probably no way for this to happen, but had to ask the Q.
Cheers,
Luke….
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
October 7, 2009 - 1:14 am
Hi Luke
Yes there is.
Subject to all of the usual criteria (income, credit, etc) you would be able to obtain finance for a property living and working overseas.
Think you might it a big stretch to claim it is your PPOR unless you intend to come back and occupy it shortly.
Richard Taylor | Australia's leading private lender
duckster
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@duckster
Join Date: 2004
Post Count: 1,674
October 7, 2009 - 2:51 am
I understand your question to be along the following
– that the house and you are in Australia but the loan is from overseas to get the interest rate at a lower rate.
If this is what you were thinking of doing I have a better idea for you to investigate.
There is a financial instrument known as an interest rate swap.Rather than changing the principal of the loan the interest rates are swapped. It is usually done for companies.
See for more info
http://www.stgeorge.com.au/corporate-business/foreign-exchange/interest-rate-swap.asp
http://www.westpac.com.au/manage/pdf.nsf/869CF0FD605BA511CA25706200232934/$File/FSR_IntRateSwapPDS.pdf?OpenElement
http://www.suncorp.com.au/suncorp/Business/international_treasury/interest_rate_risk.aspx
http://www.banksa.com.au/business/institutional-financial-markets/risk-management/swap-option.asp
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
October 7, 2009 - 2:55 am
Thanks Duckster sorry i totally misread the post ( I think)
I am going overseas myself in a fortnight and must have got over excited on the thought of holidays.
Richard Taylor | Australia's leading private lender
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
October 7, 2009 - 3:52 am
You can get loans overseas – usually from Australian banks with branches overseas. eg NAB Japan at around 2 to 3% interest. But you must be working in the country in which you take the loan out and earn money in the currency of the loan. If you leave the country you may have to repay the loan or renegoitate it.
See Ducksters post for St George's overseas currency loan etc.
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
hoarel
Participant
@hoarel
Join Date: 2003
Post Count: 39
October 7, 2009 - 10:56 am
Hi All,
Thanks for info. I am Australian, my PPOR is in Melbourne and my loan is with an Australian Bank. What got me thinking was a trip to Singapore. Reading a local newspaper I noticed that local banks in Singapore were advertising loans to buy Australian properties as investments and the loan rate was roughly 2% less than our rates in Australia. This made the investments loans more or less cash flow positive whereas for us in Australia, we would be negative geared for the same purchase.
I am not planning on getting a job overseas, so a foreign loan is out of the question. Just hoping that someone has found a way to get a loan from a bank overseas that is a couple of % lower than our current rates!!! Is this too much to hope for!!!
As I understand the "interest rate swap", this would be more short term and only 50% of difference between a fixed and variable rate???
Thanks
Luke…