In the emerging markets of Central and South America, for example, bank financing can be unheard-of. Individual developers may offer financing—though probably not on terms you’d be interested in. In these markets, your recourse typically is to borrow at home and bring the money with you.

In Europe, on the other hand, it can be not only possible, but easy for a foreigner to obtain a mortgage from a bank. And right now, interest rates throughout Europe are at all-time lows, as they are in the States. Though it is important to note that European banks do not give long-term fixed-rate loans at the most favorable rates. If you want to lock in a rate long term…you’ll pay for that privilege. Read on for details, country by country, of how to finance your dream home or real estate investment abroad.

As in most Latin American countries, it is almost impossible to arrange local bank financing in Argentina. In fact, this country’s credit industry disappeared altogether following its most recent financial crisis (mid-2002). Credit is returning, slowly. Our in-country sources tell us that locals with high salaries can obtain loans of up to $30,000. However, banks still will not lend to foreigners. Depending on your situation, you might arrange a loan through your U.S. bank, or pool your funds with a group of friends or other investors.

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.
Max LTV%: 80%
Term: Five to 30 years
Lender: Commonwealth Bank of Australia: www.commbank.com.au

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.
Max LTV%: 75%
Term: Up to 25 years
Lender: HSBC Bank Canada: www.hsbc.ca

Cyprus

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.
Max LTV%: 80%
Term: Up to 20 years
Lender: Bank of Cyprus Group: www.bankofcyprus.com

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).
Max LTV%: 70%
Term: 15 to 30 years
Lender: HVB Splitska: www.splitskabanka.hr

Czech Republic

The easiest way (especially non-residents) to acquire property and secure a mortgage in the Czech Republic is via a limited liability company.

France

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.

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.

It is possible to get a 25-year mortgage. Tailored products offered by both banks offer a mix of fixed and variable rates where the term of the mortgage can be extended to 30 years to keep monthly repayments the same.

Max LTV%: 85%
Term: Seven to 20 years
Lender: Abbey National: David Anderson, Mortgage Advisor, website: www.abbey-national.fr.

Banque Patrimoine et Immobilier: Stéphane Denner, ExPatriate & Non Resident Service, website: www.bpi-online.net.

Greece

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.

Honduras

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.

Ireland

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.

Max LTV%: 92%
Term: Five to 30 years
Lender: Permanent TSB: www.permanenttsb.ie.

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.

Max LTV%: 75%
Term: Five to 30 years 
Lender: Abbey National: www.abbeynational.it.

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%.

Max LTV%: 90%
Term: Up to 40 years (variable rate only) 
Lender: Bank of Valletta: www.bov.com.

Mexico

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%.

Max LTV%: 70% (50% max on loans over $400,000)
Lender: Collateral International (Aida Pantoja Maynard, Vice President), tel. (205)951-7337.

New Zealand

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.

LTV%: Up to 95% 
Term: Up to 25 years 
Lender: HSBC New Zealand: www.hsbc.co.nz. 

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%. 

Max LTV%: 90%
Term: Up to 30 years 
Lender: Banco General, www.banco-general.com.

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.

LTV%: Up to 70%
Term: Five to 22 years
Lender: Fortis Bank Poland: www.fortisbank.com.pl. 

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:

LTV%: Up to 80% 
Term: Five to 30 years
Lender: Banesto: www.banesto.es.