Posted on: 12th Jun, 2004 02:28 am
Foreign Currency Mortgage is a mortgage denominated in a foreign currency.This is a mortgage which allows a borrower to draw loan in another currency.In simple terms, the debt is denominated in a currency, which is different from the currency associated with the mortgage securing asset.
Features of foreign currency mortgage are as following:
Features of foreign currency mortgage are as following:
- It is used for buying a property abroad.
- It carries an element of risk due to currency fluctuations.
- Borrower has to pay local fees and taxes. He is also charged by the mortgage broker, for his services.
- It gives the opportunity to borrow money at lower rates of interest, by choosing the currency of a country, which has lower lending rates of interest.
- It mostly provides fixed rate of interest terms.
- It is available in Euro, US, Australian, New Zealand, Canadian, and Hong
Kong dollars.
- Here the mortgage debt remains in the foreign currency and the interest is also charged in that currency.
Are you able to offer mortgages for vacation property in Costa Rica?
This is a mortgage community and not a loan company, Milt. You need to contact the local lenders and apply for a loan. Not all mortgage lenders can offer a loan using the vacation property as collateral. So, you need to get approved for a loan from those lenders who'll offer you such loans.