borrowing with overseas property as collateral

Hi I wish to take some money out from my property in France without selling it but wasn't easy with local banks in the country... The property is being lease out at the moment and it's almost paid off. I recently discovered that there are facilities in HK for people like me to borrow in foreign currencies using my overseas property as collateral. But what's the pros and cons in this method? Appreciated any advices.

There are certainly facilities in HK that allow you to release equity from properties in a number of countries around the world including France. There are a couple of advantages with re-mortgaging your property in a foreign currency with the most obvious being reduced outgoings through lower interest rates. The other advantage is the potential to reduce your capital through exchange rate movements. This is also however where the disadvantages can come into play as if the currency you have borrowed in is stronger at the date you pay back the loan compared to when you inititialy took out the loan then you will actually be paying back more.


It is therefore important to get into a currency that is currently strong against your base asset with the view that over time it will weaken and you will reduce your debt.


There are a number of companies in Hong Kong that will manage this service for you and ensure that this risk is significantly reduced. If you would like their contact details let me know and I will p.m. them to you.


I hope this helps.

Many thanks for both advices.


Jarrah, could you let me know the contact details of these companies, thanks again.

Umma, I have p.m. you with some details.