Posted by
mat_z
14 yrs ago
Hi,
Just wondering if anybody could share some of the risks and benefits of switching my existing mortgage in Aus (on my home in Sydney) to a multi curreny loan i.e to HKD for the lower interest rate?
What are the worst case scenarios with rate changes, etc? Can I lose my property?
Would appreciate if anybody could advice or share their experiences with doing this..
Thanks,
Mat
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Yes you can definitely loose it, if the dollar falls rapidly which it can ( I KNOW FROM EXPERIENCE IN 2008) It is definitely not worth it, may be better just doing cash transactions swapping at good exchange rates, but if you like your house keep it as is or be prepared to loose it.
They need a LVR at 30% for a foreign property, and trust me when things start going pear shaped it can make you loose nearly everything, basically would you walk in a casino and put your house on the roulette table and hope for the best? That’s seriously how you need to look at it!
Not only can you loose it all but the emotional stress, and living your life revolving around the currency rates is not worth it. I can not stress this enough.
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mat_z
14 yrs ago
Thank you Kyander for your feedback..
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Also if the dollar drops they will not take into account any amount other than what the house will be worth at its current exchange rate, so they will ask for a massive top up request, if you don't pay they will and can change your loan back to aud or hkd at your loss at antyime.
Trust me when push comes to shove you will loose and the bank won't care about anything but their profit sheets.
Trading currencies is great if you are able to hold untill the times are right to convert, just use money you don't need for anything else.
open a multi currency account and away you go:)
Happy Converting.
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mat_z
14 yrs ago
Thank you for your advice Kyander.
Cheers,
Mat
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