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Mortgage for overseas purchase?

Discussion in 'Property Finance' started by mini2, 20th Dec, 2015.

  1. mini2

    mini2 Well-Known Member

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    Does any of the more mainstream lenders can provide mortgages for overseas property purchase or do I need to start talking to the more international banks (i.e. HSBC, Citi etc) or look overseas completely?

    Thanks :)
     
  2. York

    York Finance Broker Business Member

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    My understanding is that it may be possible. But the lender won't be willing to accept it as security. Therefore you will need to secure it with equity within Australia.
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    The internationals will arrange a loan that can use the local currency, using the local branch

    ta

    rolf
     
  4. mini2

    mini2 Well-Known Member

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    That's what I'm trying to avoid. Would like to keep everything somewhat isolated.

    That's pretty much what I'm expecting but hoping for a more local option short of pulling cash out of equity. Ta.
     
  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    You should be able to release equity in an Aus based property to cover the purchase.

    Cheers

    Jamie
     
  6. Undervalued

    Undervalued Member

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    Depending on the place where you are buying different options will exist.
    There is a specialist mortgage broker based in Sydney for NZ mortgages. I used them and it was a good experience.
    Buying in the UK is possible as an HSBC Premier customer. If you have the status here, that will allow you to go through the standard process of mortgage application in the UK (most of this is over the phone / digital).
    Not sure if other countries where HSBC has coverage operate the same way, but they may.

    Let me know if you'd like more info.
     
  7. mini2

    mini2 Well-Known Member

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    It will be somewhere in Asia and there's a massive HSBC network there. HBA did say they're trading as a separate entity and have no relations with other HSBC in the world.

    Waiting for Citibank to get back to me and might tyre kick the overseas HSBC when I get a chance.
     
  8. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    If you need to borrow money against the security property, you need to borrow it in that country. There are a few lenders with an international presence that can accomidate this, but you're not going to be able to borrow from CBA in Australia using a property in the USA as security.
     
  9. mini2

    mini2 Well-Known Member

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    Appreciate that Peter, that's why I'm trying to find someone who's got a local presence here that might be able to kick start the process. In the mean time I've also started looking in the country where the property will be purchased in and who will accept overseas income (over there of course).
     
  10. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    You probably need to be a bit more specific about which country you're buying in. ANZ, HSBC & Citibank have a decent presence in some parts of Asia, but not all.

    Realistically though your best bet is to get in direct contact with a local lender or the equivalent of a local broker.
     
  11. Undervalued

    Undervalued Member

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    Be wary of what the local guys say. They have simply no idea from my experience.

    You would be lending from the local HSBC branch in the country that you are buying, so I would go through the local branch office to see what their lending policy is. If they say they are happy to lend to non-res Premier customers, then you have a way forward.

    In general, there is no bank in Australia which will offer you the reach out, however local lenders or brokers may be able to assist.

    Also, have a look at an outfit called IP Global - they sell off the plan globally and offer finance.
     
  12. Omnidragon

    Omnidragon Well-Known Member

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    Sounds like you're buying in Hong Kong. Place is crashing. I'm flying there January to have a very good look around.
     
  13. mini2

    mini2 Well-Known Member

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    Yep and it's gunna be spectacular.
     
  14. The Falcon

    The Falcon Well-Known Member

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    You'll need to be in country. With a high enough deposit it should be reasonably straightforward. Might also be an opportunity to establish an HK company for tax efficient compounding if its a long term thing....
     
  15. euro73

    euro73 Well-Known Member Business Member

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    I worked as a Senior BDM in mortgages for HSBC for years and my sister is senior mortgage manager at Citi - unless they have changed policies lately, you need to borrow in the same country as the security. ANZ has a lot of presence throughout Asia as well, and even CBA are starting to pop up in many places- Indonesia in particular...but they still require you to apply locally, in that country.
     
  16. cheekykoon

    cheekykoon Well-Known Member

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    Is there any bank that will lend for Singapore Properties?
     
  17. euro73

    euro73 Well-Known Member Business Member

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    Banks in Singapore
     
  18. TaylorChang

    TaylorChang Well-Known Member

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    Bank/lender are looking at if something goes wrong, they want to be able to recover their loan.
    Different jurisdiction will add more complexity to loan recovery; hence, all the residential lending need to be backed by security( ie. property) within the same jurisdiction (ie country)
     
  19. sash

    sash Well-Known Member

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    Interesting......Delta.....why is it crashing...are there opportunities there??
     
  20. mini2

    mini2 Well-Known Member

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    tl;dr - self-fulfilling prophecy and panic over interest rate rise (keep in mind they're about half of what we're paying now).