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AUD / Australian Mortgage Financing & Rates

  1. #21

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    Sep 2006
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    I have not read the fine-print but personal loans in HK look cheap vs the mortgage back home. Since the AUD is low, I was thinking of taking out a personal loan in HK, and arbitraging the interest rates (+ maybe benefit from the weak AUD). Any thoughts?

    This 0% 0 fees deal looks too good to be true: https://www.moneysmart.hk/en/persona...personal-loan1


  2. #22

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    One of the components of arbitrage is zero risk. This doesn't exist when you are exposed to currency fluctuations over the course of years.

    Edit: That link you posted up seems to be capped at HKD100K. Not sure if that's going to be terribly useful for buying property in Australia.

    Last edited by jgl; 16-08-2019 at 10:57 AM.
    Viktri likes this.

  3. #23

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    Quote Originally Posted by jgl
    One of the components of arbitrage is zero risk. This doesn't exist when you are exposed to currency fluctuations over the course of years.
    OK, my apologies. Poor choice of words. What I meant was "take advantage of".

  4. #24
    bdw
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    Quote Originally Posted by i-am-si
    Sorry, i actually checked my mortgages after posting this and they're at 3.78%.

    I bought my latest block of units Queensland through a buyer's agent who i was very happy with. Avoided NSW as the land tax I'm paying there already makes the numbers tough to swallow.
    3.78% is pretty good if it's an investor loan. I thought Bankwest was doing me a favour dropping from 4.3% to 3.94% but now I realise I'm still getting ripped off. I'll probably look to switch banks in Australia once I move back

  5. #25
    bdw
    bdw is online now

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    Quote Originally Posted by loser
    I have not read the fine-print but personal loans in HK look cheap vs the mortgage back home. Since the AUD is low, I was thinking of taking out a personal loan in HK, and arbitraging the interest rates (+ maybe benefit from the weak AUD). Any thoughts?

    This 0% 0 fees deal looks too good to be true: https://www.moneysmart.hk/en/persona...personal-loan1
    Yes, I have borrowed a lot of money in Hong Kong to repay as much as I can of my mortgages in Australia. Usually I borrow at APR rates around 1% to 2%, send to Australia (very good fx rate now makes even more favourable), save 4% on my aussie mortgage.

    I have posted many times on these forums about this. Have a look at "2019 Tax loans" thread and others. Basically you should apply for tax loans, credit to cash loans, overdraft facilities etc and HK banks will charge you 1% to 2%. This is why I have no money in the bank in HK and only overdraft which I pay 1%-2% for in HK, but I am saving 4%+ in Australia

    But what you attached looks to good to be true. A totally free 0% APR loan. I don't understand, what is the catch? Why would a bank offer you $100,000, you pay back $8333 over 12 months, totally interest free. What is in it for them? Doesn't make sense to me.
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  6. #26

    Join Date
    Apr 2012
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    Quote Originally Posted by bdw
    3.78% is pretty good if it's an investor loan. I thought Bankwest was doing me a favour dropping from 4.3% to 3.94% but now I realise I'm still getting ripped off. I'll probably look to switch banks in Australia once I move back
    Yep HSBC AU Investor Principal and Interest loans. They were prepared to loan 80% for the properties also. They were pretty good to deal with actually. Completely different animal to the hopeless HSBC we're used to in HK.

  7. #27

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    Sep 2006
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    Quote Originally Posted by bdw
    But what you attached looks to good to be true. A totally free 0% APR loan. I don't understand, what is the catch? Why would a bank offer you $100,000, you pay back $8333 over 12 months, totally interest free. What is in it for them? Doesn't make sense to me.
    Yea, i am going to stay away from that one.

  8. #28

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    Quote Originally Posted by loser
    Yea, i am going to stay away from that one.
    A lot of credit cards used to offer something like this in the US 10/15 years ago.

    Transfer your balance to a new card at 0% for 12 months.

    Maybe the hope is you don't pay it off and incur interest after 12 months.

    Or maybe this contributed to the subprime crisis.

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