Mortgage for foreign property

[phoenix_n]

Which is the most common : Acquire a mortgage here for a property overseas or arrange a mortgage there ?

 

[Hel_n]

Re: Mortage for foreign property

Generally if you borrow overseas you can expect to pay higher interest rates and also the LTV is down around 70%, although this varies from country to country. A lot of banks also charge a fee for arranging the mortgage.

 

[Hel_n]

Re: Mortage for foreign property

Sorry to answer your original question, most people finance the property here in Ireland.

 

[buyingabroad]

Re: Mortage for foreign property

It depends on the tax regime in the chosen country. You need to ensure you can get a tax deduction for any interest paid.

 

[ARCH]

Re: Mortage for foreign property

Also depends on currency if the currency your buying in is not Euro, it may be another reason to borrow abroad to match the mortgage currency with the property purchase currency.

 

[icecool]

Re: Mortage for foreign property

Which is the most common : Acquire a mortgage here for a property overseas or arrange a mortgage there ?

If you can borrow in the currency you are buying in this will protect you against mahor currency movements. I use a company called Conti Financial Services based in the UK. They are specialists in overseas mortgages. Obvioucly in some countries you cannot get mortgage finance. Ones that come to mind are Cape Verde, Northern Cyrpus and Brazil.

 

[icecool]

Re: Mortage for foreign property

Which is the most common : Acquire a mortgage here for a property overseas or arrange a mortgage there ?

Look to borrow in the country you are buying in. You may release funds on your home to raise a deposit but look to borrow the bulk of the money against the property you are buying.

 

[paddyd]

Re: Mortage for foreign property

The major banks will not release equity from dwelling houses if you say its for foreign property. this is of course under certain conditions (low loan-to-value, amount required and so on).

 

[podgerodge]

Re: Mortage for foreign property

The major banks will not release equity from dwelling houses if you say its for foreign property. this is of course under certain conditions (low loan-to-value, amount required and so on).

Don't know about that, AIB released equity for me no bother to purchase property abroad. They didn't care what I spent it on.

 

[Bank Manager]

Re: Mortage for foreign property

The major banks will not release equity from dwelling houses if you say its for foreign property. this is of course under certain conditions (low loan-to-value, amount required and so on).

Incorrect. The majority of finance for purchase of property abroad is raised against either PDH or investment property here. Personally, I believe investors should raise the majority of finance against the foreign property for the following reasons:- a) if in non-euro area you will protect yourself against currency flucuations, i.e. rent and repayments in the same currency. b) as far as I'm aware you will only be able to offset interest paid on borrowing against rental income if both occur in the same country (another poster may be able to confirm/deny this).

BM

 

[almo]

Re: Mortage for foreign property

If you can borrow in the currency you are buying in this will protect you against mahor currency movements. I use a company called Conti Financial Services based in the UK. They are specialists in overseas mortgages. Obvioucly in some countries you cannot get mortgage finance. Ones that come to mind are Cape Verde, Northern Cyrpus and Brazil.

Add in Montenegro and Croatia to that, and if you're told you can get a mortgage in those countries you'd be better off going to Las Vegas and putting it all on one number (or going to Bray and play the 2p slots, oh wait, that's from before!).

You can, after some time, get a mortgage in Croatia, it's pretty straight forward and while the rate is higher than Ireland, you can get 50% equity from your existing property (in one bank you can achieve 65%).

 

[paddyd]

Re: Mortage for foreign property

Incorrect. The majority of finance for purchase of property abroad is raised against either PDH or investment property here. Personally, I believe investors should raise the majority of finance against the foreign property for the following reasons:- a) if in non-euro area you will protect yourself against currency flucuations, i.e. rent and repayments in the same currency. b) as far as I'm aware you will only be able to offset interest paid on borrowing against rental income if both occur in the same country (another poster may be able to confirm/deny this).

BM

This is describing raising finance locally in the country, or against investment property here; and not against a dwelling hse as I mentioned.
I was told by my BankManager that, while I could ave borrowed many multiples of what I did for foreign property, that they would not be listing that it was actually FOR foreign property ... something about it being easier to approve

 

[Bank Manager]

Re: Mortage for foreign property

This is describing raising finance locally in the country, or against investment property here; and not against a dwelling hse as I mentioned.
I was told by my BankManager that, while I could ave borrowed many multiples of what I did for foreign property, that they would not be listing that it was actually FOR foreign property ... something about it being easier to approve

Paddyd - My original reply referred to either PDH (Private dwelling house) or investment property here in Ireland and raising finance against either or both of them to purchase property abroad. In my experience it has been the most common way to date for investors to purchase abroad. Not sure what your own bank manager is saying to you, must say I'm confused by his/her comment.

BM

 

[FiL]

I plan to head over to Germany within the next month or so to buy some property.
Is anyone able to provide me with information about obtaining a Euro denominated Mortgage?

What documentation will I require, time process, suggested lenders.

I’m currently living in Australia.