 Sam
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 Posted: Sat Jun 12, 2004 2:28 am Post subject: Foreign Currency Mortgage |
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Foreign Currency Mortgage is a mortgage denominated in a foreign currency.This is a mortgage which allows a borrower to draw loan in another currency.In simple terms, the debt is denominated in a currency, which is different from the currency associated with the mortgage securing asset.
Features of foreign currency mortgage are as following:
- It is used for buying a property abroad.
- It carries an element of risk due to currency fluctuations.
- Borrower has to pay local fees and taxes. He is also charged by the mortgage broker, for his services.
- It gives the opportunity to borrow money at lower rates of interest, by choosing the currency of a country, which has lower lending rates of interest.
- It mostly provides fixed rate of interest terms.
- It is available in Euro, US, Australian, New Zealand, Canadian, and Hong
Kong dollars.
- Here the mortgage debt remains in the foreign currency and the interest is also charged in that currency.
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