What's stopping me from doing this? Government regs etc.

SupeNintendoChalmers on 08/08/2014 - 14:59

Hello,

Been looking at fixed interest rates around Australia and overseas and noticed how great long term mortgages are in places like the US\Japan.

For example I could get a 15 year fixed loan for 3.375% currently in America.

Product Type Glossary Term: Rate Information Panel Glossary Term: APR Information Panel
30-year Glossary Term: fixed Information Panel 4.125% 4.253%
20-year Glossary Term: fixed Information Panel 4.000% 4.176%
15-year Glossary Term: fixed Information Panel 3.375% 3.541%

So question, is it possible to get a loan from American\Japan and not cop any nasty surprises come tax time?

Financial

Comments

  • Shadowsfury on 08/08/2014 - 15:14

    You'll want to hedge the exchange rate to ensure it doesn't move against you.

    No idea on tax side, but there might be tax consequences that you'll have to work through like double tax agreements, Withholding tax, filing returns in USA, etc

  • mskeggs on 08/08/2014 - 15:37
    +1

    Most foreign lenders will not make a loan to non-residents.
    If you find different I would be delighted to hear of it!

  • neil on 08/08/2014 - 15:39
    +1

    I would think the bigger issue is if they would loan you the money. As you don't live in the US, you won't have a credit report that would show your finances/assets/etc.

    • SupeNintendoChalmers on 08/08/2014 - 15:49

      but surely credit reports can be shared among financial entities, especially if you ask (and pay a sum) for the report to be created.

      • neil on 08/08/2014 - 16:12

        Don't think sources outside of US will be included. The US just like Australia has its own set of credit and financial reporting rules.

        Lending mortgages to foreign entities also makes the loan high risk, something that banks are shying away from since the GFC/Subprime mortgage fiaso a few years ago.

  • paloverde88 on 08/08/2014 - 15:42

    Also in America interest paid on home owners mortgage gets tax rebates.
    No wonder everyone is a home owner in America and nearly every one got their house repossessed during the GFC.

  • one man clan on 08/08/2014 - 16:04
    +1

    I always find these threads fascinating.

    If you've thought of it, someone smarter than you thought of it first, and either tried to do it and got caught/stung, or found out you can't do it for a bunch of reasons.

  • Almost Banned on 08/08/2014 - 18:07

    Are you talking about using a foreign lender to buy property here - or to buy property there?
    If the former, see above.
    If the latter - pretty sure its done all the time.

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