Foreign Currency Home Loan

HSBC also offers home loans in Foreign Currencies for the purchase of a residential property in New Zealand.

A Foreign Currency Home Loan is available to people who earn the majority of their income in a foreign currency.

Loans are currently available in six international currencies (USD, HKD, SGD, AUD, JPY, EUR).

Taking out your home loan in a foreign currency will allow you to:

• Purchase a New Zealand property and have your home loan denominated in the currency in which you
earn income
• Avoid the uncertainty of currency conversions by matching the currency of your loan with the currency of your
overseas income

Lending criteria

Your primary source of income must be in the currency in which the loan is denominated
Loans are on a fixed interest rate for three months, with an automatic rollover and interest rate re-adjustment every three months thereafter
HSBC's normal lending criteria apply
Available for residential properties only (borrower is to be a trust or company and is not available in personal names)
Not to be used for currency speculation purposes
Maximum Loan to Value Ratio is 60% for stand alone dwellings in major centres
A registered valuation may be required
Maximum term of the loan is 20 years
No re-draw facility is available for Foreign Currency Home Loans
Repayments must be on a principal and interest basis (no interest-only loans)

It is important to note there is an exchange rate risk associated with this type of loan, meaning you could owe more in New Zealand dollars, (than you originally borrowed) should the currency move adversely. You must therefore be able to demonstrate an ability to reduce borrowings where this occurs. All applications are subject to HSBC's lending criteria, including a reduced loan to value ratio and an application fee.

Foreign Currency Home Loan Quick Facts

Currencies	US Dollars, Hong Kong Dollars, Singapore Dollars, Australian Dollars, Japanese Yen and Euro
Minimum loan	$500,000 for new to bank HSBC Premier customers, no minimum for existing customers
Loan term	Maximum 20 years
Maximum Loan Value Ratio	60%
Re-draw facility	No
Repayment terms	Principal and Interest (no Interest - only loans)
Interest rate	Fixed for three months, with automatic roll-over and interest rate readjustment every three months thereafter