Mortgages in Australia - Swapping them to Singapore?

[dubplate]

Hello,

I am looking into moving my Australian mortgages from NAB in Australia to NAB in Singapore. So will be paying the loans in Sing $ rather then Aussie $.

I know there is risk in currency fluctuations, but the risk/reward seems to be there with the significant drop in interest rate


Has anyone got any experience in this and can offer some advice?

[Mad Scientist]

Are you sure you can do that even though it isfrom one branch to another of the same bank from different countries.
To my understanding you cannot do that as mortgages are signed at the land of the law and secured by local banks.

If you are looking to refinance your mortgages overseas, you have to look for offshore loan.

To secure a loan for your Australia home you need to have the local bank confirming that you do have a house in OZ and it needs to have an accredited QV on the property

If you can do that I am all ears. I too, am eager to do that for my Oz home

[dubplate]

Mad Scientist


Yes - you can move your loan overseas and pay an Australian mortgage in Sing $.

I am with NAB in Australia - and NAB in Singapore has already quoted me to do this, but then you are at the mercy of the currency market! NAB wont pay out the loan and then refinance it into Singapore, simply let you pay it in Sing dollars with Sing interest rate.

I am not full bottle on the details - but I can upload the NAB spreadsheet if you like to the post?

[dubplate]

Mad Scientist - I cant seem to be able to upload a xls file to this post - PM me if you want a copy

[Nath21]

I looked into and its so risky especially if the AUD is high. I came here 2 years ago and basically currency was parity now is 1.30. That would mean I would have had 30% more to pay but at a lower interest rate. No one can predict currency well but commoditities do go in cycles even if they are super cycles this time because of china. AUD is linked to commodity prices and if that goes down you will have significant downside. Say you convert $500k Aud to SGD then your loan is $650SGD. Then if the aud goes down your home will be worth less and you will get margin called on your house because of the loan to value ratio required. So basically its punting on a large scale.

[Mad Scientist]

Mad Scientist


Yes - you can move your loan overseas and pay an Australian mortgage in Sing $.

I am with NAB in Australia - and NAB in Singapore has already quoted me to do this, but then you are at the mercy of the currency market! NAB wont pay out the loan and then refinance it into Singapore, simply let you pay it in Sing dollars with Sing interest rate.

I am not full bottle on the details - but I can upload the NAB spreadsheet if you like to the post?

Ah... then it is different. I thought too far ahead. My thoughts was that secure a loan from SG bank outright and pay off your mortgage in OZ with the lower mortgage interest in SG that will be ideal. I have searched around but the offshore loan is as good as paying it in OZ . Moreover their loan is only 70%
What Nath21 said is true, there are major currencies i.e US, Pound, Euro, Yen, Aus, that are linked with each other and are subject to global fluctuation, political development whatever. SGD is not one of them. So if you hedge your OZ against SGD say over a period of 3 years and fluctuation occurs, you will be definitely facing deficit.
I will PM you as for my personnel reading thanks !!