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Mortgage in a foreign currency

This rate in foreign currency is considered a variable rate, because it period of revision is inferior to 5 years. Indeed, from one bank to the other, it is revised every three, six months,  or 5 and 10 years.

It can be indexed to the LIBOR – London Inter Bank Offered Rate – fixed average, for a considered currency and for a given payment date, from an index rate calculated every day at 11 AM (London business hours), and published by the British Bankers’ Association (BBA), by  representing the averagerate at which a sample of major banks in London lend “in blank” (which means without the pledged by securities) to other major banks.

It may also be indexed to the lending bank’s bonds in the chosen currency. The rate applied to your loan composed of the indexation, revised every 3 or 6 months, with an added bank commission (spread), t fixed during all the length of the loan.

Your capital will be indexed to the currency that has been chosen and fixed to the day of disburseme funds and the monthly payments will either be in shekels or in the currency of choice.

Lastly, this type of loan allows you to make anticipated payments, partial or total, without penalties at the condition of having referred to the loaning bank, ten days before repayment.

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