Mortgage abroad: 5 examples

In the photo: Paper sculpture of the artist Stephen Doyla

While the Russian authorities urge banks to reduce housing rates “at least 9-10%”, many look at the mortgage abroad, because there you can buy real estate on credit at 4-5% per annum. And the prices are more pleasant than Moscow. For example, 50 thousand euros in Spain are a good apartment in the secondary market, 10 minutes driving to the sea, in Moscow - at best, the room is far from in the center.

Low cost is an important advantage, but you still need to get a loan. Not all foreign banks credit non -residents. It is difficult to get a mortgage in the UK, Italy. “It is much easier to do this in the same Switzerland or on the Cote d'Azur,” said Vincer Truni, chairman of the board of directors of the General Invests investment company. There is also a chance to become a mortgage borrower in the Austrian, German, Spanish and Finnish banks.

The policy of foreign banks as a whole is quite simple: a non -resident, and to the resident, too, it is necessary to show the source of repayment of the loan and interest. “This is often impossible, since the client has no income not only in the territory of the country where the property is located, but even on the territory of the European Union. Therefore, it is not worth expecting a mortgage, only because you bought something, ”warns Irina Zharova-Rait, the managing partner of the Szegar investment group.

It is enough for some banks to make sure that the future borrower is solvent in his country, he has constant and highly paid work, and he already owns some kind of real estate. Often foreign banks break through the future borrower on social networks: there is a circle of his communication and social status. They do not pay such close attention to income certificates (they still need to be translated into English), as Russian banks do, it is more important for them what assets the client already has and where they came from. If for the Russian bank the source of the client’s well -being is not so important, the foreign bank may require confirmation that everything is earned by overwhelming and honest labor. The field of activity of a potential borrower plays an important role: foreign creditors are more likely to issue mortgage loans than financiers to employees of state corporations and raw materials.

If you are lucky enough to receive from the foreign bank approval for a mortgage at 4%, and maybe even 3% per annum, is it worth it to assume that your money has finally earned? Unfortunately, not always like that. Very high currency risk. If you receive a salary in rubles, and a currency loan, then in the case of a Russian crisis, mortgage payments will increase sharply. It is difficult to predict the situation in the real estate market in a particular region. “Many burned down in real estate in Miami, which depreciated by 50% as a result of the crisis,” says the owner of the apartment in the United States.

It is also necessary to take into account the accompanying expenses that vary depending on the country. For example, when applying for a mortgage in London from a borrower, as a rule, they charge the so -called Arrangement Fee - a loan payment fee. “It can be a fixed amount, for example 1,500 pounds, or a percentage of a loan, for example from 0.5% to 1%,” Alla Fedorova, managing partner of the Silverpearl Capital LTD investment company, explains. In addition to payments on a loan, you will also need money for the maintenance of a foreign object, which is generally more expensive than in Russia.

As a full investment, it is probably not worth considering the purchase of foreign real estate in a mortgage. She will bring you much more joy if you actively use it for personal purposes or have plans to move to the country where you bought it. And to minimize risks, it is still desirable that the loan is in the currency in which your income.

The observer Slon found among her acquaintances borrowers on mortgage loans in foreign banks. And for them this is not an investment, but real estate for relaxation, family and friends.

Below are the parameters of loans for the purchase of an apartment issued in the period from 2010 to 2013 in different countries.