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AUD mortgage/HK bank question

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  1. #31
    Quote Originally Posted by i-am-si:
    Yeah for property in NZ. ANZ in NZ do 70% LVR so was just wanting to do a market check.
    If you borrow offshore and want to deduct the interest cost for tax purposes, you will either:

    (i) need to make sure that the loan is treated as an onshore loan by the lender with interest being paid in NZ; or

    (ii) deal with the non-resident withholding tax issue which means either (a) forgetting about tax deductibility in NZ or (b) paying non-resident withholding tax on the interest (bank will require a gross up) and filing some returns with the IRD in NZ.

  2. #32

    Join Date
    Apr 2012
    Posts
    25

    My OCBC NZD loan is treated by the accountants as it would be in NZ and it's secured against the property. I submit the same annual interest statement to them as I would any NZ originated loan and they use that for deduction purposes with the IRD.

    Are you taking about other types of loans?


  3. #33
    Quote Originally Posted by i-am-si:
    My OCBC NZD loan is treated by the accountants as it would be in NZ and it's secured against the property. I submit the same annual interest statement to them as I would any NZ originated loan and they use that for deduction purposes with the IRD.

    Are you taking about other types of loans?
    There is an exemption for Singapore and Malaysian lenders. See the note on NRWT on page 15 of the IRD's Guide: https://www.classic.ird.govt.nz/reso...r3nrg-2018.pdf

  4. #34

    Hi bdw,

    How could u lend AUD in Standard Chartered Hk by mortgaging your HK Property pls


  5. #35

    Join Date
    Jan 2019
    Posts
    1,237
    Quote Originally Posted by Karen123456:
    Hi bdw,

    How could u lend AUD in Standard Chartered Hk by mortgaging your HK Property pls
    better to speak with the manager Karen


    sorry

  6. #36

    Thank you, aquaman.

    I will try today. Seems not easy coz I called many banks hotline and staff said no such facility.


  7. #37
    Quote Originally Posted by bdw:
    Yay! More interest rate cuts in Australia. Now I am on 3.42%. In the last 6 months I have dropped from 4.74% to 4.49, 4.3, 3.94, 3.55, and now finally 3.42%. This is with Bankwest, principal plus interest, investor loan.

    On another note, Standard Chartered Hong Kong will also lend me AUD at a rate of 2.7% now. It's also gone down dramatically in the last 6 months. So I can borrow as much as I can in HK at 2.7% and send to Aus, all in AUD which is completely FX risk free. But this is boring and I'm a bit more of a risk taker, SC HK can also lend me JPY at only 1%. So I borrow JPY, send this to Aus, of course has FX risks but if I play the game right can hopefully come out on top.
    It will be very helpul, if bdw advise how he could do that in Standard Chartered HK

  8. #38

    Join Date
    Feb 2009
    Posts
    8,280
    Quote Originally Posted by Karen123456:
    It will be very helpul, if bdw advise how he could do that in Standard Chartered HK
    Hi there. I borrow AUD from Standard Chartered in HK and paying 2.01% interest rate. It's basically an overdraft at really cheap interest rates. This is something they call wealthpro, and you have to have some assets in HK to offer SC as security, then they lend you up to 80% of this security value in up to 11 currencies.

    https://www.sc.com/hk/investment/wea...ing/wealthpro/

    But it seems like in August last year they made changes to this and its not so attractive anymore. I still pay 2.01%, but new applications paying 3.51%.

    Now they have something new called "InvestPower" and you can borrow AUD at only 1.01% this month, defaults back to 1.51% next month. I haven't looked deeply into this product, but it seems not suitable for purchasing property in Australia. This is for investing purposes, for example I have some AUD funds from JPMorgan and Shroders that are held with Standard Chartered in HK.

    https://www.sc.com/hk/investment/wea...g/investpower/

    It depends why you want to borrow AUD? Do you want to purchase property in Aus? These days, local Aus banks are already offering really cheap interest rates and better just do it in Aus.
    shri likes this.

  9. #39

    Thank you very much, bdw


  10. #40

    .

    Hi bdw,

    May I know if similar overdraft facility exists in Aus bank? I am going to use the AUD to purchase Australia Treasury or State Government bond. If same facility exist in Aus bank , I can make the bond as collateral to increase my invest power


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