AUD Mortgage

[Neol]

I currently own outright a property in London and I am looking to buy another property of equivalent value. To buy the new property I will require a mortgage and will use the existing property as additional security so my LVR will be approximately 50%.

I have found several banks in London and overseas who will loan me the funds to do this. However, the banks will loan me GBP£. Given that I earn AUD$ and the AUD$ is strong at the moment I would like to finance the loan in AUD$.

I have asked the banks about foreign currency and they have indicated that they do offer these products in various currencies ie. YEN, EURO, USD$... but will not offer the product in AUD$ to Australian Residents (citizens or otherwise) only Non-residents of Australia may borrow in AUD$. One Bank mentioned the Australian Corporation Act prevents foreign Banks from lending to Australian Residents in AUD$.

Does anyone know if it is possible to borrow AUD$ from overseas and how to do it?

 

[clockwork]

Hi,

In a similar situation to yourself.

I dont know of any that will lend to you AUD. But, if you are after a strong currency, why dont you borrow in CHF?

Im curious though, I thought the UK banks would only lend to UK residents? Thats what my mortgage broker told me!!! And all the banks I have mortgages with pretty much said the same thing! So curious how you are managing it.. As Im looking to invest again over there...

Cheers

 

[peaches]

Foreign banks cannot lend to borrowers who reside in Australia for Australian property. While Australian lenders cannot lend in any currency against overseas security.

NOTE: for the purposes above ANZ Singapore and CBA HK are foreign banks. If you have substantial assets ($2mill) then CBA HK could be an option for you.

You could try HSBC who may be able to originate in UK and shuffle the FX no point chasing Australian lenders.

 

[Neol]

The UK banks will lend to foreign residents with an LVR of 60% and I am using a mortgage broker to facilitate this. I also have dual citizenship so this may be helping my case.

I am also looking to invest in the UK again but with all my equity tied up need to take out a mortgage. I don't want to take a mortgage in GBP£ as it is weak now. An AUD mortgage would allow me to gain (or potentially loose) on any significant currency movement and is hedged given that my salary is in AUD.

I am thinking about CHF or other similar strong currency but this introduces another element of risk.

I have the required assets and have tried ANZ / NAB Singapore, CBA HK, but again hit a wall with foreign banks not wanting / not allowed to lend AUD to Australian residents.