Foreign currency loans: finance them in your country or. Income currency

Foreign currency loans can be a good alternative to traditional euro loans. This is especially true if your income is not in euros but in another currency (for example, Swiss francs, US dollars, or British pounds) and you fall under the so-called. conversion right. Foreign currency loans, on the other hand, are not suitable for currency speculation.

Foreign currency loans shutterstock 122945515

Note: due to the Corona situation, we do not currently offer foreign currency loans! The reason for this is that our bank partners do not currently process foreign currency loans for this area!

There are two different definitions of the term "foreign currency loan" in Germany:

  • Loan in a currency other than the euro
  • Loan in euros if you, as the borrower, do not derive most of your income in euros

Banks in Germany are quite reluctant to grant foreign currency loans. This is especially due to the problems that arose years ago when granting loans in francs "to anyone". Our neighbors in Poland and near-neighbors in Hungary have also had bad experiences with this. The main reason was that most borrowers did not earn their income in francs but, for example, in DM and later in euros. The comparatively favorable interest rates, especially of Austrian banks, then turned into the opposite rather quickly because of currency fluctuations.

The problems with the sog. Franc loans were, by the way, the trigger for the so-called "foreign currency loans". EU housing loan directive, which all sog. Non-residents have problems with real estate financing in Germany.

We offer real estate financing in foreign currency only in the currency in which you earn your predominant income. If you earn most of your money in euros, we will not make you any offers for loans in Swiss francs (exception: you have enough assets to be able to repay the foreign currency loan in full if necessary).

The following currencies can be used

  • US Dollar (USD)
  • Swiss Franc (CHF)
  • Japanese Yen (JPY)
  • Czech crowns (CZK)
  • British Pound (GBP)
  • Hong Kong Dollar (HKD)
  • Polish Zloti (PLN)
  • Swedish krona (SEK)
  • Canadian dollars CAD

The interest rates can be fixed for 1, 2 or 3 months. Basis for conditioning is a bank's own reference interest rate. To this reference interest rate is then added a fixed bank margin.

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