What is an International Mortgage?
- Buy a property to live in, in the country where you have moved to
- Raise capital on a home that you own in a former country you’ve lived in that you intend to keep
- Raise money on a home you own in your country of origin Purchase or remortgage a buy-to-let property in any country
Why Research is Key
Irrespective of your needs, it is crucial that you consider all aspects of purchasing with a mortgage or remortgaging your property. Involving and seeking advice from the right people is a must, including financial advisers, solicitors, real estate agents, surveyors, architects and maybe even government departments – the list is not exhaustive.
There will be considerable differences in how mortgages work from country to country, so you must obtain the right advice from the start. Don’t assume they work the same way as your country of origin. You will need a substantial deposit, especially after the banking crisis a few years ago.
Lenders are, on average, looking for a commitment from you of about 25% of the purchase price, usually as a cash deposit. Sometimes, this deposit is greater than 25%. There may also be a restriction on how long you can take the loan, for example, 20 or 25 years.
Considerations
You’ll need to consider the currency in which the mortgage is paid. This is usually the currency of the country where the property mortgaged is. Still, some countries’ lenders allow you to pay the mortgage in a more favourable currency – for instance, if your employment is transient and your salary currency varies.
Understanding the laws governing the country you want to purchase from is paramount, and this is where an experienced international mortgage adviser can help considerably.
You will also need to consider employing a translator for verbal conversations with officials and professionals and documents that must be created in a foreign language. Signing for something you don’t fully understand is, without a doubt, foolhardy.
Great care is also needed if you purchase a new build from a property developer. Has the developer used the building as security for its needs, and if so, will the debt belong to you on purchase? You may be in for a nasty surprise without proper due diligence and sound legal representation.
Other points to consider are the effects on any death taxes back in your country of domicile. Would there be a need to amend your Will and, if you haven’t got a Will, make one?
How Sameer Alam Can Help
Once purchased with a mortgage or remortgaged, you still need to consider the ongoing costs of the property, for example, maintenance and maybe local/government taxes on it.
Any mortgage adviser worth his salt will recommend that once everything is in place before you sign final contracts, you take a breather and consider the full implications of the transaction. That way, you give yourself time to reflect and ensure the deal is right for you.
Sameer Alam has many years of experience in dealing with his clients’ borrowing needs in countries right across the world and can take the stress out of all the complex processes involved in international mortgages. A Savethroughus adviser’s expertise in this area is invaluable.
Your Next Move
Sameer Alam consistently delivers unbiased and professionally tailored international mortgage solutions, providing clients with the best advice at all levels.
Contact us for a bespoke service with one of our highly qualified international mortgage specialists, and let us help you mortgage or remortgage successfully.
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