Can I move my Mortgage to Australia?

[Buzzard]

My Broker says NO. Does anyone else want to comment on the possibility of say BNZ Australia holding the mortgage on my home here in Hastings NZ.

Interest at current Australian rates, payments made into Hastings branch. Same company, transferring equity only, whats the problem with that? Inter-transtasman jelousy? Conflicting Finance laws?

There has got to be lawyers or merchat bankers out there that do this internationally with out being stung.

[NESW]

My understanding is that the Banks are still separate companies, regardless of whether they have the same "name" or not across the Tasman.

For instance, BNZ in Aust. were (and poss still are) running out of National Banks. I have a BNZ account in NZ, however National will not transfer funds to it over the counter.

BNZ in NZ cannot hold security over my properties in australia. The loans I have in NZ must be held against NZ property....

It would be nice to have a global bank, perhaps there is, but not in the circles that I work in.

Relos that I know who have done extremely well all seem to have accounts in the Cayman Islands.... ex' politicans are being reported as having Swiss bank accounts and complex company structures.... all I think for hiding assets and funds, not for borrowings....

[captaincrab]

The difference between the Interest rates is not great enough to cover the Foreign Exchange Risk imho.

[NESW]

The difference between the Interest rates is not great enough to cover the Foreign Exchange Risk imho.

Depends on what you are borrowing for. For example, if you want to purchase a farm in NZ, not only do you have to have 40% - 50% equity or deposit, but farming loans generally are 2% greater than the normal residential lending rates.
With the exchange rate floating between 14% - 22% in the past, and quite possibly again in the future, it might be worthy for consideration depending on the circumstances.

However, one would need to consider whether interest expense will be claimed as costs on NZ IR returns. If you are in the mid to high exchange rate climate, then you will see the benefit anyhow with the repayments sent back from Aust. to NZ.
When the "actual" exchange rate was at 4% then bank processing fees etc brought the remaining benefit back down with a thud.

I would possibly consider doing it between Aust. and NZ at the right time, depending on what the purchase was for (ie funding building own home whilst waiting for settlement on sale of one in Aussie) but many people have lost considerable funds hedging on exchange rates and interest rates in other countries and it is terribly risky.

I believe that if you were to undertake a google search on such loan arrangements, you may well find class actions against a few banks who signed people up to loans based on overseas borrowings. And lost the lot.