Refinance with German bank

Discussion in 'Loans & Mortgage Brokers' started by Norm, 12th Feb, 2020.

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  1. Norm

    Norm Member

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  2. Trainee

    Trainee Well-Known Member

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    Cant read german but are they lending you euros and you repay euros? How are you hedging the fx exposure? Do they have margin calls if the aud falls?
     
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker Business Member

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    Will they lend? Taking a mortgage in a foreign jurisdiction.
     
  4. spludgey

    spludgey Well-Known Member

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    Nein!

    It even gets you to list which state you're in and all of those available are in Germany.
     
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  5. datto

    datto Well-Known Member

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    Dunkoff!
     
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  6. spludgey

    spludgey Well-Known Member

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    "Dummkopf"

    *NSW accredited German translator here
     
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  7. Luca

    Luca Well-Known Member

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    Tried with the Italian banks, not possible.
    I must say I have tried 2/3, maybe possible for wealthy investors.

    The main issue is that they want to inspect the asset, not possible if they don`t have local brunches.
     
  8. datto

    datto Well-Known Member

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    That's why I'm a dunkoff lol.
     
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  9. willair

    willair Well-Known Member Premium Member

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    Overview of your financing

    Your funding amount:
    € 402,849
    Your APR:
    0.71 %
    Your borrowing rate:
    0.69 %
    Your interest rate commitment:
    10 years
    Your monthly rate:
    € 1,003.77

    Your total term
    38 years, 0 month
    Your total amount including interest
    € 458,921.66
    ..Achtung ..
     
  10. Luca

    Luca Well-Known Member

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    Yep, In Italy I have got friends buying PPOR @1% fixed @ 30 years P&I
     
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  11. willair

    willair Well-Known Member Premium Member

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    My guess would be measuring the effectiveness..
     
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  12. Scott No Mates

    Scott No Mates Well-Known Member

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    Isn't that how you decide a tied basketball final?

    Tell a banker that there's a brunch in it, they'll make time.

    Have you tried Banca Commerciale Italiana Spa? They've got a Sydney office
     
    Last edited: 12th Feb, 2020
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  13. Luca

    Luca Well-Known Member

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    Ahahah...my Italian food addiction always there...

    Nope, worth asking. Maybe I can get a bit of additional money to invest, why not ;-)
     
  14. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Fleischkopf.

    Thats what happens when you have a native German Speaker translate Aussie Slang to Schwaebish.



    for those that speak German, have a go at this :)

    Lemme know how u go

    ta
    rolf
     
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  15. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Deutsche Bank are reasonably easy to facilitate loans through the German to Sydney offices.The legalities in Germany are quite complex for loans and property mortgages etc. They wont lend in Germany on aussie property but an aussie can buy German property with a german loan. The loan must originate where the property is and will be handled through your notary. The german office has a efficient process for hand-over through Sydney for execution of docs etc. No broker is permitted and no application can be initiated in Sydney. It must occur in Germany. LVRs are lower for non-residents of germany. ...Often 55%. BUT there is a cap on repayments based on income which also limits the sum borrowed. ie approx 1/3rd of income is the max repayment. The AU credit report needs to be produced too. There are laws in germany which require a credit report. (Schufa). Applications need a load of detail. Its germany. If they are in english its not generally a problem.

    Main lenders are PostBank, Commerz Bank, Deusche and sparda. Note you will need to pay application fees (1.5%+) which can be hefty as well as legals and even official translation. A german lawyer (notary) will also need to advise on the debt and mortgage and issue a sign off as THEY sign as your attorney....Yeah its complex. Default insurance may be required too. Mortgages dont have a guarantee so they are limited recourse. Hence the insurance issue. German banks cant charge monthly fees on property loans.

    FX exposure is generally moderated when a loan exists since the fx movement on the property and the loan will be a spread so that the risk is effectively only on equity. But FX risks do exist. In the past two years of so the AUD/EUR spread has dropped almost 5% meaning the AUD value of equity has risen by that factor. If it were possible to borrow in EUR and use to buy AU property the inverse would occur and the AUD value for the debt would have blown out by almost 5% which reflects as a cost that probably would exceed the apparent low rate. ie 5% + 1.8% = 6.8%
     
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  16. Scott No Mates

    Scott No Mates Well-Known Member

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    Must be one of @datto's well-to-do neighbours. Flanno shirt, tee, brown jeans (can't get everything right). Missing the Winnie reds under the tee shirt.
     
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  17. spludgey

    spludgey Well-Known Member

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    Having been born in Filderstadt (right in the middle of Baden-Württemberg, 10km south of Stuttgart), I understood about half of it, given that I moved from there at age 2.

    German dialects are a lot more different from each other than English ones. You can frequently tell whether someone is from one side of a valley or the other, just on how they speak.

    Here's a simplified map of the dialects.
    And bear in mind, the highlighted area is half the size of NSW.
    [​IMG]
     
  18. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

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    Swiss Deutsche adds even more dialects and different words for the same things Im told. Its all greek to me
     
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  19. Norm

    Norm Member

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    Thanks Paul, You have answered everything I needed to know!
     
  20. sash

    sash Well-Known Member

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    In your case drunkoff! :D:p