|
|
Financing
'Traditiional' Mortgage Financing is currently unavailable for non US residents - however there are alternative loan solutions available for certain types of borrower. Through a local broker, we can for example, arrange 'Equity Collateralized Loans' (ECL's). These are loans securitised against stocks, bonds and tradable mutual funds. Where a buyer for example, has a portfolio of (publicly traded) investments against which he can borrow, without sacrificing any potential annuities accruing from these investments.
Benefits:
- Low interest rates: fixed interest rates between 2.5% & 4.5%
- Fixed Terms: usually between 3 and 10 years, but may go longer
- Non-purpose: Funds may be used for virtually any borrowing need
- Non-recourse: giving the borrower the opportunity to “walk away” if the collateral falls below a set amount
- High Loan-to-Values: loans available up to 80% of securities value
- Quarterly interest only payments
- NO income
- NO credit checks
- NO appraisal (if real estate)
- NO citizenship requirements
- Minimum $200,000 loan amount with NO maximum
- Pledged securities are the only required collateral
- Borrower can be an individual or corporation, anywhere in the world
- Borrower keeps all dividends, and upside market appreciation of his securities
- Application to funding in as little as 2 WEEKS
How it Works :
- Loan to value ratio and interest rate are driven by the type of securities pledged.
- The more liquid and actively traded securities, the higher the loan-to- value ratio and the lower the interest rate
- No principal amortization or loan pre-payment allowed
- At the end of the loan term the loan may be renewed, refinanced or paid off
- At pay off, the exact number of shares or collateral initially pledged is returned to the borrower
- Default trigger is set at 80% of loan, not 80% of securities value like typical margin loans
- If the securities value falls below the default trigger, the borrower has two options:
- Walk away from the obligation of repayment of the loan and securities and keep the original loan proceeds
- Contribute cash or securities to bring the value back to the default trigger amount
- Eligible securities include stocks, bonds, and tradeable mutual funds. Retirement accounts (401k) are not eligible
Call us now, or email us for further details on how we can help you buy your dream property using ECL finance or equity release on your existing property.
