Banks target cashed-up expats
CASHED-UP Australian expats living in Europe are being offered special mortgages to buy property back "home'' as the big four banks combat the lowest domestic home loan affordability rates in more than two decades.
In the past, Australian banks have focused their expatriate mortgage services on Asia, but now recognise high disposable incomes in the UK and higher value foreign currencies can provide a niche boom in off-shore home loans.
Offshore mortgages can be set in the foreign currency earned, such as British pounds or the euro, with loans based on interest rates set by their respective central banks.
In the current environment, those foreign interest rates for repayments are lower than loans based on the Australian dollar.
ANZ has now joined the Commonwealth Bank, NAB and Westpac in operating a London-based one-stop-shop expatriate mortgage service, targeting Australians who want to invest or are considering returning to Australia.