Foreign currency loans allow Australian expatriates and foreign investors to borrow funds in a currency other than the Australian dollar. As offshore lenders are not permitted to lend to Australians resident in Australia you will often find that you will be forced to refinance upon your return to Australia. Foreign currency loans will therefore hold particular appeal to returning Australian expats who would like to save on refinancing costs and any waiting periods associated with the loan process.

How much can I borrow

There are a number of variables that will affect your borrowing power with these types of loans the most significant arising from exchange gains and losses. To get a more precise assessment of what your borrowing capabilities will be including an assessment of suitable finance structures, complete the brief form below or call +61 2 9249 3739 and we will contact you at a time that is convenient for you.

Unhedged loans

Because of fluctuations in currency, when it comes to unhedged loans (where the income stream and the borrowing currency are different), it is essential that you get a clear understanding of how foreign currency loans work before making a commitment. Get your Loan Market mortgage broker to explain the pros and cons of these loans.

Maximum loan to value ratio (LVR)

Where foreign currency loans are concerned, maximum loan to value ratios (LVR) are generally 75%, this could go up to 80% in some cases dependant on the lender and the borrowers finance circumstances.

Foreign Currency Loan Requirements

• To ensure that you will be able to meet your loan repayments, lenders will usually require that your income is either in the same foreign currency or denominated to it.
• Verification of income and assets
• Meet additional LVR restrictions if the income stream and borrowing currency are different