Overseas loans (whilst in Oz)
#1
Just Joined
Thread Starter
Joined: Sep 2005
Posts: 5
Overseas loans (whilst in Oz)
I was wondering if anyone has risked an overseas loan? I am looking to buy a house soon and was wondering whether it is possible to borrow money from overseas eg Singapore at low percentage rates rather than have to borrow from the Aus Banks at over 7%?
flying free
flying free
#2
Re: Overseas loans (whilst in Oz)
The percentage rate won't be so low if the Australian dollar suddenly drops against the Singapore dollar (which the interest rate differential suggests will happen).
Lots of people have been badly stung financially by trying this out. Bad idea. And in any case, unless you were earning money in Singapore dollars, many banks would not want to lend to you this way.
#3
BE Enthusiast
Joined: Jul 2005
Posts: 936
Re: Overseas loans (whilst in Oz)
Interest rate was 1.5% initially, so well worth doing. It's now gone up to about 2.4%. The Aussie strengthened a lot after we took out the loan, so effectively your loan becomes smaller against the equity in your house valued in AUD. The negative side is that my income also declines that way, so the overall effect was fairly neutral. But it meant I could borrow on my credit record in Japan and have very small monthly repayments relative to borrowing locally.
#4
Just Joined
Thread Starter
Joined: Sep 2005
Posts: 5
Re: Overseas loans (whilst in Oz)
hanks for the advice
#5
SharonC
Joined: Jan 2005
Location: Perth
Posts: 142
Re: Overseas loans (whilst in Oz)
If you are looking to borrow money to buy a property in Oz then you may find you will not be able to get a loan in another country. Generally the lender will use the property you are buying as security against the loan. SO unless you have another form of security in the country you want to borrow from you may find you wont get the loan.
#6
Just Joined
Thread Starter
Joined: Sep 2005
Posts: 5
Re: Overseas loans (whilst in Oz)
If you are looking to borrow money to buy a property in Oz then you may find you will not be able to get a loan in another country. Generally the lender will use the property you are buying as security against the loan. SO unless you have another form of security in the country you want to borrow from you may find you wont get the loan.