Property buyers looking to purchase a home in another country are often hamstrung by their nationality and place of residence. But these factors don’t have to hinder your ability to secure a mortgage against a property anywhere in the world.
International mortgages enable you to secure a loan to purchase properties in countries you don’t live in, including prime European markets, the United Kingdom and the United States of America. However, finding the right lender to secure the best international mortgage for your financial portfolio can be challenging. For example, some UK banks offer international mortgages but financing a property in another country can be difficult, and you may not get the best mortgage rates and terms possible.
Hectocorn’s expert insight into the international mortgage market ensures you deal with the most appropriate, specialised lenders who offer the best finance deal for your specific situation.
Hectocorn has extensive experience securing international mortgages for ultra-high-net-worth individuals purchasing properties worldwide. Our international mortgage experience includes these core locations:
International mortgages in Europe vary based on the country where investors wish to purchase a property.
France remains the world’s most visited country and one of the most popular choices for retirees. The country has an excellent geographic placement and countless recreation opportunities, from the Mediterranean Sea to The Alps mountain range.
Paris remains extremely popular with upward market trends that continue to offer a high return on investment for buyers intending to rent out their property. Courchevel is one of the most luxurious locations in the Alps, boasting its own airfield and multiple Michelin-starred restaurants, premium hotels and exclusive ski chalets. And Chamonix offers a paradise for skiers, with world-class resorts, spectacular alpine views and a multitude of year-round outdoor activities.
As a result, France’s domestic and international property investment opportunities remain a popular choice for ultra-high-net-worth individuals. The French property market is well-developed but has its unique quirks. For instance, purchasing a property in France allows non-residents to lock in highly beneficial long-term rates.
MONACO AND CÔTE D’AZUR
Monaco remains one of the most desirable locations in Europe with wealthy property buyers due to its advantageous tax system. It has excellent geographical placement and exceptional levels of safety, making it the ideal location for wealthy individuals.
Monaco’s financing and real estate system also imposes few restrictions on foreign buyers, which means sales can conclude within as little as two months. However, the principality’s size means limited real estate opportunities exist on the market.
Nearby locations along the French Riviera, like St Tropez and Cannes, have long been a magnet for the ultra-wealthy and famous. The region has benefited from global prestige, making it a premium location for investments. These iconic destinations remain the most popular among our clients, with Sean Jean Cap Ferrat and Antibes amongst many receiving the most inquiries.
Germany is a prime property investment destination due to its regional diversity, ranging from Berlin to Bavaria and Lower Saxony. Germany has some of the lowest loan rates in the EU, with the Berlin property market particularly attractive for people seeking a beautiful location while saving money.
The country has a robust buy-to-let market, low-interest rates and simple international mortgage processes, which offer great incentives for foreign buyers. For example, research by the EU Commission found that German property values increased by 94% between 2010 and 2022, compared to a 45% EU average.
Greece’s rich history, culture and beautiful coastlines make locations like Athens, Mykonos and Santorini among the most favourable tourist destinations in the world. The country offers one of the world’s longest coastlines, home to approximately 6,000 islands that boast distinct personalities, including beaches, lush green landscapes and traditional architecture.
Greece’s property prices are low compared to the broader European market, making it a particularly favourable destination for ultra-high-net-worth individuals. Locations like Athens, Crete and Mykonos can offer an average rental yield of 4% and 50% loan-to-value (LTV) mortgage rates for foreign nationals. An investment of €250,000 in Greek property makes you eligible for a Greek visa. While non-residents can obtain an international mortgage for real estate located on the mainland and the Greek islands, an additional permit is required in border areas like Rhodes and Crete.
Italy offers rich investment opportunities for ultra-high-net-worth individuals, from the picturesque scenery of Lake Como and beautiful fishing villages like Portofino to the hustle and bustle of major cities like Florence and Rome.
Investing in Italian property remains popular with many ultra-high-net-worth individuals. High rental yields, ranging from 3% to 6%, offer a rapid return on investment, and purchasing an Italian property is reasonably straightforward. Most Italian banks are eager to give mortgages to non-resident investors, but you may be required to provide paperwork proving you’re a low-risk borrower. That said, it’s worth noting that foreign investors can struggle to secure an international mortgage in Italy without assets above €5m or placing assets under management.
Luxembourg remains one of Europe’s most expensive places to live, with an average GDP per capita of $111,500 and property prices 70% higher than the EU average in 2021. The country is appealing as no restrictions are placed on foreigners wanting to purchase properties, but a reasonably large deposit is required. However, Luxembourg City is among the most populated in Europe and is also home to the country’s financial centre, so prices tend to be high. When purchasing a property in Luxembourg, you’ll also need to consider additional charges like registration and notary fees.
Interest rates in the Netherlands, like the rest of Europe, are low, making the market an excellent long-term investment. Despite high prices, mortgage repayments are significantly lower than rent prices, particularly in Rotterdam, The Hague and Amsterdam, making the Netherlands an excellent long-term investment option.
Portugal offers beautiful coastlines, world-class cuisine and outstanding architecture, making it highly desirable to ultra-high-net-worth individuals and people seeking a retirement destination. Lisbon, in particular, stands out in the Portuguese property market, and prices saw an average increase of 3.7% between January and the end of June 2022. While cities like Amadora and Porto, along with the picturesque towns along the Algarve coast, are especially popular with tourists.
Portuguese properties offer an average rental yield of 5% to 8%, prices are increasing and purchase processes are relatively quick and straightforward. The country also provides the Golden Investor Visa, which is available to non-EU nationals who invest significantly in the Portuguese market.
Spain is also an extremely popular destination with ultra-high-net-worth property investors due to its geographical location, Mediterranean climate and world-class cuisine. Furthermore, real estate remains one of the few industries generating a positive return on investment in the country, according to the Bank of Spain.
Investing in Spain remains a profitable asset, particularly regarding short-term and long-term renting, with a rental yield of 4%. Areas like Ibiza and Mallorca can be particularly promising for home buyers, along with Malaga’s attractive short-term holiday rental market. However, Spanish banks can be stringent and impose rigid criteria around concessions.
Switzerland remains a popular destination for ultra-high-net-worth individuals due to its appealing property market, favourable taxation system and high standard of living. For example, Zurich is increasingly popular due to its high quality of life and being a global capital for banking and finance. But the appeal of the country’s real estate market extends out of the capital and into The Alps mountain range.
There are several limitations to purchasing a property in Switzerland as a foreign investor. For example, the Lex Law prohibits the acquisition of Swiss real estate by foreign nationals without a permit. This can make the market tricky to navigate, especially when requesting a high LTV mortgage, but it is possible to obtain 100% finance using assets under management (AUM).
Obtaining an international mortgage in the United States differs for each city and state. For example:
Non-Americans can purchase property in Los Angeles with a substantial down payment, a liquid bank account and significant reserves. In 2021, California accounted for 20% of all foreign purchases and LA has an average rental yield of 5% and up. Beverly Hills has long been a preferred location for foreign investors, offering great long-term returns as prices rise.
New York is a great location to secure an international mortgage. The Upper East Side, in particular, is home to New York’s elite and offers luxurious properties and an affluent lifestyle. Rental yields across the city can surpass 3%, and rental apartments make up around two-thirds of the city’s housing stock. However, the down payment is a crucial consideration in avoiding high-interest rates.
Texas offers a unique landscape and a more affordable way of life compared to other locations across the United States. Texas is particularly popular with people seeking a more peaceful lifestyle, with rental yields as high as 7.5%. Foreign nationals face no restrictions when purchasing a property in Texas, which offers relatively low living costs compared to LA and New York.
Ultra-high-net-worth individuals are also looking to Delaware, recognised as having a strong corporate law structure ideal for business owners seeking a favourable market environment.
The idyllic location of the Caribbean offers rich opportunities for ultra-high-net-worth individuals to secure an international mortgage.
The island of St. Barts, in the French West Indies, is particularly appealing as it has no restrictions on foreign nationals purchasing property and no annual real estate tax. The island offers the very definition of elegance and luxury, attracting high-end investors and fashionable crowds from around the world. Its real estate market in locations like Grand Cul de Sac and Anse des Cayes offers diverse real estate opportunities, from opulent hillside villas to luxury beachfront homes.
ARUBA, BONAIR & Curaçao
The Dutch islands of Aruba, Bonaire and Curaçao are renowned for offering outstanding nature and wildlife, making them a magnet for overseas investors seeking a luxury apartment or beachfront home. Aruba, Bonaire and Curaçao have no restrictions on foreign investors and offer freehold and land lease options, usually for a renewable 60-year period.
Barbados is one of the most alluring destinations across the Caribbean and has a strong reputation for offering the finer things in life. This includes its West Coast, also known as the Platinum Coast, which offers an attractive rental yield of 4%. The Government of Barbados actively welcomes buyers from around the world.
Hectocorn specialises in securing highly personalised international mortgage arrangements that meet the specific requirements of ultra-high-net-worth individuals. We can help you open doors to lenders that specialise in international mortgages on high-value properties anywhere in the world. Whether you’re looking for a dream apartment in the French Alps, a luxury apartment in the heart of Monaco or a beachfront home in the Caribbean, Hectocorn will guide you every step of the way.
Hectocorn’s established relationships with leading international mortgage lenders ensure we secure the best international mortgage rates regardless of any complex personal financial situation. We’ll analyse your circumstances to negotiate an international mortgage solution that meets your short- and long-term goals.