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
JamesMany 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 MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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.
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.
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St George used to offer a Foreign Currency loan but was withdrawn a few years ago.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
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.
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