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***************** Australia It is relatively easy for foreign
residents to obtain local bank financing for an Australian property. Non-resident
applicants are dealt with on a case-by-case basis. A minimum loan amount
of approximately $90,000 applies to all borrowers. Fixed and variable rate
options are available, from 5.99%. Loans are available in Australian dollars
only.
***************
Generally, mortgages are available
to non-residents of Canada up to a maximum of 65% of the purchase price
of a piece of property. Higher amounts may be obtained if the residence
is purchased with a Canadian citizen. For residents, loan-to-value ratio
is 75% (as below). There is a minimum loan amount of approximately $57,000.
Fixed and variable rate loans available, from 4%. Loans are available in
Canadian dollars only.
****************
Foreign buyers can generally borrow
up to 70% from a commercial bank, in foreign currency. All major currencies
are offered. Bank of Cyprus offers a one-year fixed interest rate of 5%,
variable after that.
************************ Croatia HVB Splitska Bank offers loans to
foreign buyers for the purpose of buying or renovating Croatian property.
All mortgages are fixed rate. Interest rates are relatively high, ranging
from 6.99% to 7.69% (HVB account holders receive preferential rates).
******************
The easiest way (especially non-residents)
to acquire property and secure a mortgage in the Czech Republic is via
a limited liability company. HVB Bank offers the “Majordomus mortgage”
to owners of Single Purpose Companies (SPCs) that are buying a primary
residence or investing in buy-to-let property.
************************
If you hold a carte de séjour (visa allowing you legal residence in France), banks and other lending institutions will treat you no differently than a national. Otherwise, unless you have a salary paid regularly into a French bank account, it may be difficult to obtain local financing from a French bank. That said, it is relatively easy to arrange mortgages through British and French lending institutions operating in France and specializing in expat loans, including BPI (formerly Woolwich) and Abbey National. The lender will charge an arrangement fee—in the case of both BPI and Abbey National, this is around 1% of the total mortgage subject to a minimum of approximately $700 and a maximum of $1,500. The minimum loan amount is generally $60,000. Fixed and variable rate loans are available, from as little as 2.75%—although these rates can be misleading as they are usually promotional. Loans are made in euro, and it is required that the monthly payment be automatically debited from a French bank account. The maximum loan-to-value percentage is officially 70% in France; however, Abbey National and BPI will both lend up to 80% and occasionally 85%, depending on the circumstances. It is worth noting that mortgages
in France are based on income and not assets; however a proportion of rental
income from the secured asset can be taken into consideration. Other institutions
are able to be more creative taking into account non-French assets, but
this is not the norm.
Max LTV%: 85%
Banque Patrimoine et Immobilier: Stéphane Denner, ExPatriate & Non Resident Service, e-mail: stephane.denner@bpi-online.net; website: www.bpi-online.net. ***********************
It is relatively easy for foreigners
to obtain financing for the purchase of residential property in Greece—on
the mainland and in the islands. There is a minimum loan amount of $37,000.
Variable and fixed rate options available, from 3.6%. Loans are in euro
only.
***********************
With average interest rates reaching 35%, local bank mortgages don’t make sense for investors in Honduras. However, many property owners and developers offer financing over several years. In these cases, you can expect an average interest rate of 10%, with the developer/owner holding the mortgage until the property has been paid for in full. The other option is to arrange the cash in your home country and bring it to Honduras with you. *******************
Non-residents may secure up to 70%
of the purchase price from an Irish lending institution. Residents can
get as much as 92%. It should be noted, however, that unless you are seeking
a short-term mortgage (five to 10 years), individuals over 50 years of
age may find it difficult to arrange a mortgage. As a rule of thumb, a
working (resident) individual can usually borrow two-and-a-half times his
annual income. Fixed and variable mortgages are available, from around
2.54%. Loans are in euro and pounds sterling.
********************* Italy Compared with other European countries,
Italy’s mortgage industry is still in its infancy, and foreigners may find
it difficult to obtain financing here. As in France, you may do better
to contact one of the overseas lenders who have recently moved into Italy—Abbey
National has branches all over the country. For non-resident non-EU buyers,
the maximum loan is 50%. Most loan contracts are in Italian. Loans are
available in euro and all major currencies.
*********************** Malta Depending on income and personal
circumstances, you can borrow up to 90% of the property purchase price,
if the home loan is designated in Maltese lire—and up to 80% if it is in
a major foreign currency. Fixed and variable options available. The average
interest rate is currently 4.75%.
**********
Regardless of residency, it is near
impossible to obtain local financing in Mexico. However, some U.S. financial
institutions offer mortgages to U.S. buyers of Mexican property. Collateral
International in Birmingham, Alabama, is one such company. It also offers
“construction” loans, granting the finance to build a detached, single-family
residence. A minimum loan amount of $100,000 applies. The maximum you can
borrow is $600,000. Loans are fixed rate, from 9.25%.
***********
Apart from long-term fixed-rate mortgages
(which are impossible to arrange here), local financing is readily available—and
on attractive terms. There is a minimum loan amount of approximately $90,000.
For foreign-currency home loans (available with HSBC), you can borrow up
to 70% of the purchase price. Residents can obtain up to 95% financing
for an owner-occupied property; 80% for an investment property. Loans are
available in New Zealand dollars and most major currencies.
******************************* Nicaragua Again, as in most Latin and South American countries, local bank financing is mostly unheard of in Nicaragua. Developer financing may be available for certain developments—just don’t count on getting the attractive terms you’ve come to expect from U.S. lenders. ************************ Panama It is easier to arrange a mortgage
in Panama than anywhere else in Latin America. Local financing is widely
available for foreign residents. Banco General offers fixed-rate mortgages
on residential property for up to 90% of the selling price. For raw land
purchases, you can borrow up to 70%.
******************* Poland Loans are readily available for the
purchase of Polish property. There is a minimum amount that may vary from
lender to lender and according to location. With Fortis Bank, this minimum
is 35,000 Polish zlotys ($9,000) from any of its branches outside Warsaw;
50,000 zlotys ($13,000) in Warsaw. Generally, non-resident buyers can borrow
up to 70% (50% if self-employed). Higher percentage loans may be granted
on a case-by-case basis. Current interest rates start at 4.16% for loans
in U.S. dollars and from as low as 1.7% in local currency. Swiss franc
and euro loans are also available.
************************* Spain Mortgages are readily available for
the purchase of property in Spain and on the Spanish-owned Canary and Balearic
islands. A minimum loan amount of $36,000 applies to most buyers. Non-resident
buyers can generally borrow up to 70% of the purchase price over five to
20 years. Mortgage interest rates in Spain are among the lowest in Europe,
starting from as little as 2.5% fixed. For residents, terms are:
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