ANZ-Dual-Currency-Loan - Property loan

ANZ-Dual-Currency-Loan

Product Information

An ANZ DCL provides an alternative property financing option in the same denomination as your primary source of income.
It can be used to purchase, construct or refinance for residential or investment property. (Conditions apply).
A DCL allows you to match the income and the expense currency, with the currency of the loan as well as the opportunity to take advantage of potentially lower interest rates.

Qualifying Criteria

To qualify for an ANZ Dual Currency Loan (DCL) the following criteria must be met:
• Minimum income equivalent to AUD200K per annum.
• Net assets equivalent to AUD1million.
• Client suitability risk profile met.
• Available to non residents of Australia and/or New Zealand.

Key Benefits

• Ability to borrow in your income currency and/or property currency with the flexibility to switch between. #
• Interest rate savings may apply compared to domestic Australia & New Zealand rates.
• Mobility- the facilities are designed to follow the borrower globally. #
• No on-going/annual/administration fees.
• No charge for early prepayment or redemption of loans on interest repayment dates.
• Investment loans may be deductible for tax purposes in both Australia and New Zealand however independent tax advice should be sought.

Features

Minimum Loan

AUD500,000

Choice of Currencies

AUD, SGD, EUR, NZD, HKD, GBP, USD, YEN

Currencies are Limited to:

The currency of the security property.
The currency of the customer’s primary income stream.

Maximum Term

Up to 25 years (or retirement age) whichever is lesser.

Loan to Valuation Ratio*:

Interest Only 5 yrs max
Principal & Interest

Up to 70%

Single Currency AUD or NZD

Up to 80%

Repayment schedule

Monthly

Loan Establishment Fee

A$750

Acceptable Security

Standard Residential Property. +
ANZ cash or term deposits pledged as security.
Other security may be acceptable subject to credit approval.

Key Risks

Exchange rate risk:

Foreign currency fluctuations resulting in a capital loss by way of an increase in loan principal.

Clawback process:

Margin Call- If loan value ratio (LVR) increases by 5 percentage points (5%) above the approved LVR, then customer must reduce LVR back to approved level by either paying down the loan or adding further security.
Close Out - If loan value ratio (LVR) increases by 10 percentage points (10%) above the approved LVR, then the loan is converted back to base currency resulting in a capital loss.

Contact an ANZ Private Banker if you have an enquiry or to make an appointment.

* ANZ will lend to the lower of the purchase price or ANZ valuation.
# Conditions apply.
+ Standard Residential Property is defined as homes, apartments or rural property up to 10 hectares (<25 acres) in size and does not include serviced apartments, student accommodation and small apartments (< 50m²) in size.