Normally when you borrow for a home loan from an offshore lender you are forced to refinance on your return to Australia - this is because offshore lenders are not permitted to lend to Australians resident in Australia. Refinancing costs money and what's more if you return to Australia to live you may start a new job and be ineligible for any finance for up to 6 months.

Using our Australian lenders the refinance rule does not apply. We have major Australian lenders who can offer home loans and investment loans at competitive rates in USD, JPY, CHF, GBP, EUR, HKD and SGD. Income or asset qualifications apply and unhedged loans (loans not supported by income in the same currency) further LVR restrictions apply. However this means you can earn in USD and pay JPY rates!

You may also split the home loan and have part foreign and part Australian dollar or you can switch back to AUD at any time ($350 fee applies with one lender and free switch with the other). By borrowing in another currency you expose yourself to FX fluctuations this applies to LVR limitation where the FX movement increases your relative LVR and therefore reduces the banks equity - this may result on a call to adjust your LVR by the addition of cash or other security.

For example on a $500,000 loan amount a 10% rise in the AUD would result in a $45,401 windfall - of course a fall in the AUD would work the other way and if you were already at maximum LVR you may be required to make up the shortfall. The following chart from the RBA showing AUD against GBP and CHF

We have also recently partnered with World First one of the world's leading currency exchange brokers who specialise in Australian Expat currency transactions - click here for more information.

Why not complete the quick loan inquiry form on the right or phone 61 2 6626 6810 or
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