Author Topic: Borrowing against foreign investments.. ideas or recommendations?  (Read 873 times)

daverobev

  • Magnum Stache
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So, I have a house in the UK, and one in the US. Both owned outright. Silly me, paid off the UK mortgage, and now it seems I'm stuffed - can't borrow in the UK when not resident in the UK.

I'm actually more interested in borrowing in the US, as the returns are better, and the barriers to entry lower (plus I'm closer, now).

So far, I know of a couple of ways of using *Canadian* credit history to borrow in the US:

RBC Bank - will lend on investment properties, but min. $75k mortgage and 40% down = $125k house, which is more than I really want to get in (plus I'd have to raise $50k). They do UNsecured lines of credit, but no secured ones. AFAIK unsecured will be relatively expensive. I'll probably open a line when I buy a second house to reduce the amount of emergency cash I need in that currency, but not for an outright purchase.

TD - will do mortgages/lending in certain states only, which is fine, but not in the state I'm currently invested in. No reason NOT to go in one of the states they do lend in, except I'm already hooked up in TX.

I have emailed a few banks and credit unions and basically got "we don't do foreigners" OR "we don't do investment properties" (and possibly both). I can borrow here in Canada, but obviously that opens me up to foreign exchange risk, and I can't use the property as leverage - the Canadian banks (RBC Bank and TD have US-sides that can at once work with Canadian history, but lend in US$ against US assets) lending in CAD can't secure against US side stuff.

So - anyone know any helpful banks to foreigners and investment properties?

So far I've tried: City Bank Texas, BBVA Compass, Hanscom FCU.

Simplest option is obviously just buy with Canadian money. Which is fine, too, just wondering if there are other options.

Thoughts? Cheers!