The UK’s largest Bank, Lloyds Banking Group, has a solution. Lloyds has recently opened two new offices in Canada and it’s now offering its International Mortgage to Canadians.
Lloyds’ International Mortgage is designed for purchasers of a second home, vacation home or investment property abroad. One of its big benefits is the ability to be set up in multiple currencies. You can even change the currency you pay the mortgage in twice a year for free.
Suppose you’re a Canadian wanting to buy in the U.S. Here’s what you can expect:
- Maximum Mortgage: Unlimited
- Minimum Mortgage: $150,000
- Minimum Property Value: $400,000
- Maximum LTV: 50% in California, Florida, Nevada, Oregon. 60% in Colorado, Connecticut, Hawaii, New Jersey, New York, Washington State. 70% on exception for high net worth clients purchasing $1 million+ properties.
- Term: Fully open. No pre-payment penalties.
- Credit: No credit check required
- Income: Applicants’ combined income must be no less than 20% of the loan amount
- Maximum Amortization: 30 years
- Typical Fees: 1.3% of the loan amount + $360 administration fees. Other fees may apply. Inquire for details.
- Rate Type: Variable
- Pre-approvals: Yes
- Mortgage payments: Made quarterly (no other frequencies are presently available)
- Interest Rate: Currently 2.59% over Lloyd’s cost of funds, or 4.32% when paid in Canadian dollars. Add 0.2% if interest-only. Current rates.
All paperwork is done remotely. No visits to a bank are required.
Lloyds also lends in Great Britain, Spain, France, Portugal, New Zealand and selected locations in Australia, Canada (for non-Canadian residents), Dubai, Hong Kong and Singapore.
Update: As of September 2012, this program is no longer offered in North America, or via Canadian mortgage brokers.