An interesting source of loan funds



From: Andrew Scott

I thought that the readers here may find this one interesting..

I know someone who is planning to buy a property in Australia, but will be working in Japan for the next little while. They can get a loan from the National Australia Bank (Japan Office) at a rate of around 2% to buy their property in Australia.

It is normal in Japan to get that kind of rate of interest (official gov rate is around 0%), and they will be earning in Yen and paying off the loan in Yen.

The only catch is that this loan is essentially a "margin loan", which means that if the nominal value of the property (in Yen) falls to the point where the loan is covering greater than 70% of the value, they will have to put in more funds of their own.

So.. they need to come up with a 30%+ deposit and there is a risk that they'll have to pay extra fees, but a 2% rate is less than a 1/3rd of what NAB would charge in interest in Australia. Even if they end up having to pay double the interest, they'll still be ahead.

Andrew Scott
Last edited by a moderator:
Reply: 1
From: Rick Otton

yeah if your an expat you can borrow from the hong kong offices of all the banks here in different currencies at much lower interest rates
Last edited by a moderator: