Mortgages abroad for non-residents
The most common question to Global Property Guide is: 'In what countries can we get an overseas mortgage, and on what terms?
If you buy abroad, there are two ways of getting a mortgage abroad if you're non-resident, or have no local income:
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Ask a local bank or mortgage provider. See list of mortgages available in different countries below.
But in cold practical fact, it may be difficult for a person with no current taxable income in the country to get mortgage. Mortgages abroad for non residents can be difficult!
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Use an overseas mortgage broker. We suggest that, rather than trying to approach a local mortgage company, perhaps in a country where you may not speak the language confidently or one in which you are not domiciled or familiar, you should use a specialist overseas mortgage broker.
These companies are familiar with the local bureaucracy and language and will work to find you the best mortgage as well as look after all negotiation and paperwork. They have experience in providing mortgages abroad for non-residents, and have access to several local companies, so will give the borrower a broad choice when seeking the right overseas mortgage.
We've looked at several companies which provide mortgages abroad. We recommend Connect Overseas as a good source of mortgages abroad for non-residents, partly because of their wide overseas mortgage country coverage (see list of countries at right).
Two extra things:
If you know of other companies which offer overseas mortgages to non-resident foreigners in countries not yet covered (see table to right), please email us.
Also, we keep an eye on companies we recommend. So – keep us informed!
Information on the terms typically offered by local mortgage providers
GLOBAL PROPERTY GUIDE MORTGAGE MARKET INDICATORS |
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| COUNTRY | MORTGAGE MARKET STRUCTURE1 | LTV OF NEW LOANS (%)2 | TYPICAL LOAN TERM (YEARS)3 | MORTGAGE DEBT (% OF GDP)4 | HOME OWNERSHIP RATE (YEAR OF CENSUS)5 |
| Algeria | .. | 90 | 30 (max) | 1.5 | 63 (1985) |
| Argentina | Variable | 80 - 90 (avg.) | 12 - 20; 20 (max) | 1.7 | 68 (1990) |
| Australia | Variable | 90 - 100 | 25 | 71.0 | 69 (2004) |
| Austria | Fixed | 60 (avg.) | 25 | 26.1 | 57 (2001) |
| Bangladesh | .. | 50-70 (avg.) | <15 | 2.5 | 86(2001) |
| Belgium | Fixed | 100 | 20 | 28.3 | 68 (2001) |
| Bolivia | .. | 70 (avg.) | 15 - 20 | 9.5 | 60 (1997) |
| Brazil | Variable | 75 - 100 | 20 (max) | 5.0 | 75 (2000) |
| Bulgaria | .. | 90 | 30 | 4.7 | 97 (2002) |
| Canada | Fixed | 75 or 95 | 25 | 43.0 | 66 (2004) |
| Chile | Variable | 75 | 8 - 20 | 16.0 | 73 (2002) |
| China | Variable | 80 | 10 - 15; 30 (max) | 12.0 | 80 (2006) |
| Colombia | Variable | 70 | 30 (max) | 12.0 | 61 (1997) |
| Croatia | Fixed/ Variable | 50 | 20 or 30 | 10.0 | 61 (1999) |
| Czech Rep | Fixed (Mixed) | 100 | 20 | 5.5 | 47 (2001) |
| Denmark | Fixed | 80 | 30 | 87.9 | 53 (2004) |
| Egypt | Variable | 60 | 10 - 15 | 3.0 | 69 (1996) |
| Estonia | Variable | 90 | 30 | 22.0 | 85 (2002) |
| Finland | Variable | 75 - 80 (avg.) | 15 - 20 | 35.7 | 64 (2005) |
| France | Fixed | 100 | 15 - 20 | 29.0 | 56 (2002) |
| Germany | Fixed | 80 | 20 - 30 | 54.0 | 43 (2002) |
| Ghana | .. | 80 | 20 - 25 (max) | 0.5 | 57 (2000) |
| Greece | Variable | 55 (avg.) | 15 | 17.6 | 74 (2004 |
| Honduras | Variable | 70 | 20; 30 (max) | .. | 72 (2001) |
| Hong Kong | Variable | 90 | 15 | 44.0 | 57 (2004) |
| Hungary | Variable (Mixed) | 70 | 5 - 35 | 11.0 | 92(2003) |
| India | Mixed | 85 | 20 (max) | 2.0 | 87 (2001) |
| Indonesia | Variable | 90 | 8, 10, or 15; 20 (max) | 5.8 | 96 (2001) |
| Iran | 70 - 80 | 18 (max) | 3.0 | 73(1996) | |
| Ireland | Variable | 100 | 20 | 59.2 | 77 (2004) |
| Israel | Variable | 70 - 95; 80 (avg.) |
15, 30 (max) | 22.0 | 74 (2002) |
| Italy | Variable (Mixed) | 80 | 5 - 20 | 15.0 | 80 (2002) |
| Japan | Fixed (Mixed) | 70 - 80 (avg.) | 20 - 30 | 36.4 | 61 (2003) |
| Jordan | Variable | 80 - 90 (avg.) | 20 (max) | 11 | 66 (2004) |
| Korea | Variable | 70 | 3; 20 (max) | 2.1 | 54 (2000) |
| Latvia | Variable | 100 | 30 | 14.0 | 60 (2000) |
| Lithuania | .. | 100 | 25 | 12.6 | 87 (2002) |
| Luxembourg | Variable | 80 (avg.) | 20 - 25 | 33.5 | 67 (2002) |
| Malaysia | Variable | 80 | 30 (max) | 31.5 | 85 (1998) |
| Mexico | Variable | 100 | 10 - 15 | 11.0 | 79 (2000) |
| Morocco | .. | 70-100 | 25 (max) | 7.0 | 69 (1985) |
| Netherlands | Fixed | 125 | 30 | 100 | 55 (2005) |
| New Zealand | Variable | 60 - 80 | 30 | 78.2 | 68 (2001) |
| Norway | Variable | 70 | 15 - 20 | 45.0 | 77 (2001) |
| Pakistan | 80 | 20 (max) | 0.7 | 81 (1998) | |
| Peru | Variable | 90 | 25 | 2.5 | 79 (2001) |
| Philippines | Variable | 70 - 80 (avg.) | 20 - 30 (max) | 12 | 71 (2000) |
| Poland | Variable | 100 | 5 - 32.5 | 5.2 | 75 (2004) |
| Portugal | Variable | 90 | 25 - 30 | 50.7 | 75 (2001) |
| Romania | Variable | 75 | 10 - 20 | 1.8 | 97 (2002) |
| Russia | Fixed/ Variable | 90; 64 (avg.) | 15 - 20 | 0.6 | 64 (2003) |
| Saudi Arabia | .. | .. | .. | 1.0 | 45 (2000) |
| Singapore | Variable | 80 | 30 - 35 | 61.3 | 92 (2005) |
| Slovakia | Variable | 75 | 5 - 15 | 5.9 | 76 (2001) |
| Slovenia | Variable | 50 (avg.) | 10 | 3.5 | 82(2002 |
| South Africa | Variable | 80 | 10 - 20 | 26.1 | 56 (2001) |
| Spain | Variable | 100 | 15 - 20 | 40.2 | 83 (2004) |
| Sweden | Variable | 80 - 95 (avg.) | 30 - 45 | 50.3 | 49 (2003) |
| Switzerland | Fixed | 80 | 15 - 20 | 130 | 31 (2003) |
| Taiwan | Variable | 70 | 25 | 26.0 | 87 (2004) |
| Thailand | Variable | 80; 90 - 100 | 10 - 20; 30 (max) | 16.0 | 82 (2000) |
| Tunisia | Variable | 80 | .. | 6.0 | 80 (1989) |
| Turkey | Variable | 75 - 80 | 10 | 2.5 | 64 (2000) |
| UAE (Dubai) | Variable | 90; 60 (avg.) | 15 - 25 | .. | .. |
| UK | Variable | 110 | 25 | 64.0 | 71 (2004) |
| Uruguay | Variable | 70 | 25 (max) | 9.8 | 81 (2004) |
| US | Fixed | 76 (avg.) | 30 | 69.4 | 69 (2004) |
| Venezuela | Fixed | 70 - 75 | 25 (max) | 0.7 | 76 (1990) |
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1 Mortgage Market Structure shows the predominant type of mortgage loans. Mortgages with interest rates fixed for more than five years are regarded as Fixed rate mortgages. Variable rate mortgages are mortgages with interest rates fixed for less than five years. In several countries, mortgages interest rates are fixed for 1 to 3 years before adjusted (these mortgages are still considered variable rate mortgage). In Chile, Colombia and Mexico, most mortgages are indexed to inflation (i.e. nominal interest rate plus inflation). Since the actual amount of amortization is subject to fluctuations due to inflation, these mortgages are also considered variable rate mortgages. 2 Loan to Value (LTV) Ratio is the amount of the loan that can be taken as a percent of property value. A higher LTV ratio implies a lower down payment or equity to be produced by the borrower. 3 Loan Term is the number of years before the loan is paid. A longer loan term implies a smaller amount of periodic amortization. 4 Mortgage Debt as percent of GDP is a measure of the depth of the housing market. Higher ratios are correlated with 1) faster and deeper financial innovations in the mortgage market; and 2) more liberal financial markets. Latest data available. 5 Home Ownership Rate shows the number of households which own their dwelling units as a percent of total number of households. In some cases, the figure represents the number of owner occupied housing units as a percentage of total occupied units. Sources: EMF, BIS, OECD, UNECE, ECLAC, IADB, IUHF, IUT, national statistics, and central bank statistics |
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