Question from Whale Beach, NSW
Is it possible to shop outside of Australia for a home loan?
2 answers
Yes, it is possible, and a lot of high networth individuals or businesses do that by sourcing finance from other countries. However, you most likely need to have enough assets holding in that country as security in the first place. To structure a cross border lending deal is very complicated as it involves cross border lending regulations, international tax treatments, foreign exchange fluctuation risks, and so on. If you struggle to get a home loan in Australia, you might find it even harder to get a loan from overseas. A general rule from Australia retail lenders, they can only take Australian property as mortgage securities, because they are unable to take charge of the property located overseas.