Mortgages are 30 year loans, good luck trying to hedge a 30 year foreign exposure....it doesn't exist. The most the market will bear is 5 years, and even then you're getting to costs of about 7% upfront. That eats away the 2% margin doesn't it?
Don't get too excited....Citigroup/GE are American banks that have been here for a long time and their borrowing costs are ~0% too. But they are pretty lousy lenders in Australia.
Don't get too excited....Citigroup/GE are American banks that have been here for a long time and their borrowing costs are ~0% too. But they are pretty lousy lenders in Australia.