General Mortgage Advice

Here at BuyingForeignProperty, we have put together a simple guide to mortgages in top foreign countries for property investment. The guide covers whether foreign investors are able to source the mortgage abroad, what sort of rates to expect and any other general information the investor should be aware of.

Bulgaria
Local or abroad: Local banks are looking to attract foreign buyers and many now have excellent rates for foreign investor mortgages.
Rates: Mortgage rates are around 7%. This is expected to drop because of Bulgaria’s introduction into the EU
Anything Else: Foreign buyers must have a deposit of at least 30% for the majority of local banks. Always read the terms and conditions of your mortgage as many have punitive redemption clauses. The Bulgarian cabinet also recently changed property rules to allow foreign buyers to inherit and buy property in Bulgaria more easily.
Click here for a list of Bulgarian mortgage providers.

Canada
Local or abroad: Foreign banks cannot register mortgages in Canada meaning that buyers must take out a mortgage via a Canadian lender.
Rates: Mortgage rates are around 5.5 to 6%.
Anything Else: Ensure you have proof of income and ID documentation as you will be expected to have this to hand when applying for a mortgage.
Click here for a list of Canadian mortgage providers.

Cyprus
Local or abroad: You can get a mortgage either at home or in Cyprus. Most Cypriot banks should be able to provide foreign investors with a mortgage.
Rates: Mortgage interest rates are around 7% if your mortgage is in Cyprus pounds. Shop around in other currencies as you may find a better rate of interest.
Anything Else: Buyers are expected to put down a deposit of at least 30%. They also must have life insurance.
Click here for a list of Cypriot mortgage providers.

Dubai
Local or abroad: Buying in Dubai is becoming easier, with familiar names like Lloyds TSB and HSBC joining local banks in offering mortgages.
Rates: Rates vary between 6.5% and 9%. These are usually dependent on the % deposit put down and the length of the term – 15 years is the average mortgage length.
Anything Else: Some mortgages are only available on specific properties. Buyers must normally have life insurance.
Click here for a list of Dubai mortgage providers.

France
Local or abroad: It is easy to get a mortgage in France. Many Worldwide banks such as Barclays and HSBC are commonplace throughout France.
Rates: Fixed mortgage rates are between 4 and 5%. Variable rates are sitting around the 3% mark, although this can fluctuate.
Anything Else: Most banks will require a 20% deposit, although you may be able to negotiate for a higher loan. Self certification mortgages are not available and most lenders have very strict guidelines as to who can borrow and how much. Proposed rental income will not be taken into consideration.
Click here for a list of French mortgage providers.

Italy
Local or abroad: Worldwide banks such as Barclays have a prescence in Italy. Otherwise, mortgages are readily available from Italian banks.
Rates: Mortgage interest rates are usually between 3 and 4.5%
Anything Else: Italian banks tend to calculate the mortgage loan on the basis of expected monthly repayments. These repayments should be no more than a third of your disposable income.
Click here for a list of Italian mortgage providers.

Poland
Local or abroad: Several Polish banks offer mortgages to foreign investors. The growing demand for property since Poland’s introduction to the EU.
Rates: Rates vary between 4 and 8% depending on the currency of the mortgage. Most commonly, mortgages are taken out in either Swiss francs, euros, pounds sterling, US dollars or Polish zlotys. Shop around to find the best deal.
Anything Else: Mortgages will be repayment only. Buyers are expected to have at least a 30% deposit, although you may be able to negotiate a 20% deposit. Most mortgage providers will not take into account rental income unless you get a specific buy-to-let mortgage.
Click here for a list of Polish mortgage providers.

Portugal
Local or abroad: Worldwide banks such as Barclays are common in Portugal. Otherwise, local Portuguese banks are happy to lend to foreign investors.
Rates: Mortgage rates are typicall around the 4% mark.
Anything Else: Most mortgage lenders will expect a deposit of at least 20%. Non status mortgages are not available.
Click here for a list of Portuguese mortgage providers.

Spain
Local or abroad: Most Spanish banks are happy to lend to foreign property investors.
Rates: Mortgage rates are usually between 4 and 5%
Anything Else: Spanish mortgages are typically repayment, however there are increasing numbers of interest only mortgages on the market.
Click here for a list of Spanish mortgage providers.

Turkey
Local or abroad: There are only a few Turkish banks that will currently lend to foreign property investors, however it is expected that more will offer mortgages to foreign investors in the near future. You may need to find finance in your own country.
Rates: Rates start at around 6%. As more lenders enter the mortgage market, the rates are expected to drop.
Anything Else: Mortgages are repayment only and a 20% deposit is expected on property purchases. Mortgages generally can only be given for 30 years and no more.
Click here for a list of Turkish mortgage providers.

RSS Feed for This Post3 Comment(s)

  1. orlando | Feb 24, 2007 | Reply

    can I get a motrgage in usa for a propierty in colombia south america)?

  2. Hos | Dec 14, 2007 | Reply

    Please advise contact details of mortgage providers and lenders for foreigners in the United States. (Excluding Florida)

  3. Advice Property | Sep 28, 2010 | Reply

    Useful advice for anyone who is planning to invest to any property.

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