Looking for a Foreign Currency Home Loan
Is the Aussie dollar and high Aussie domestic interest rates
crippling your property portfolio return. If you live outside of
Australia and have good income/cash flow then there are options for you
with foreign
currency loans through Australian lenders. How does this
sound 6.76% GBP or 2.19% SGD
or 3.83% USD (rates current 22/9/2008) and even better rates possible
for high income earners or investors with substantial assets.
Normally when you borrow 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 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 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 if and when you either pay the loan or
revert to AUD. It also applies to LVR limitation where the FX movement increases your relative LVR - 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 is latest from the RBA showing AUD against GBP and
CHF

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