Maximize cash flow with a low-interest foreign currency mortgage! Use to purchase or refinance income-producing real estate in:
(Now available to US citizens for investment properties in selected US states!) (Expats in Japan - capitalize on your yen earnings!) (UK residents - Purchase a vacation rental home with a buy to let mortgage!)
Potential Benefits Huge Monthly Savings - Significantly reduce your monthly mortgage payments by borrowing at a much lower interest rate. Debt (Capital) Reduction - Take advantage of favorable exchange rates to reduce the capital element of your mortgage. For example, if the currency your loan is denominated in depreciates by 5% against the dollar then your outstanding debt has also been reduced by the same amount.
Windfall profits - Large currency swings in your favor can translate into sizeable reductions in debt allowing you to repay your loan sooner than anticipated.
Tax deductibility - Interest payments are 100% tax deductible (interest only option).
Potential Risks
Interest Rate Risk - Changes in interest rate policy by the Central Bank of the country whose currency your loan is denominated in can lead to an increase in the interest rate of your foreign currency mortgage.
Currency Exchange Risk - The possibility of losses and/or increases in liability due to adverse movements in exchange rates. Exposure is proportionately related to the amount that you borrow. (Utilizing a currency switching facility minimizes this risk.)
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