International Mortgage Loan is the same as any mortgage loan, the only difference being that it is taken out against a property in a country you do not live in. The situation usually arises at the time when you are living in one country but investing in properties that are overseas. When it comes to an International Mortgage loan, there are a few things that one must consider. And all of these things are related to the payment options.
While you might be thinking of getting an International Mortgage Loan, there is one place that can offer you more benefits than the others. Loans in Kuwait have advantages that can be fruitful for you in more ways than one. The best one being the very availability of such facilities in the first place. While some countries would not offer an International Mortgage Loan easily, Kuwait is one that does.
Bank Financing is one of the best options that one could have for a property. It is especially restricted in many countries, so there should be a lot of research. For instance, if one needs to take out an International Mortgage Loan in Kuwait, they must be familiar with all the rules and documentation involved when it comes to loans in Kuwait. If you are considering bank financing as an option, then a few things must be kept in your mind as you go along.
- Loan to Value Ratio
An International Mortgage Loan via bank financing can offer you a lower Loan to Value Ratio. These depend on various aspects but are only 50 – 75 percent of the value.
- Shorter Terms
The term of an International Mortgage Loan is shorter in this case. There are hardly any instances where one can get a 30 year loan term.
- Flexible Interest Rates
Loans in Kuwait, as well as in other countries that do offer it, are known to have flexible rates of interest. This is because various factors come into play while applying for an International Mortgage Loan. These factors decide what the interest rates would be, and so is the way that they are adjusted.
- Life Insurance
The person taking out an International Mortgage Loan must have their life insurance in order to guarantee their loan. However, this is the factor that can affect the term of your loan if a person is older. Insurance companies would only insure them till the age of 75. And so, if a 65-year-old is trying to apply for an International Mortgage Loan, then they can only get a term of 10 years and not more than that.
The processing fee is one such expense that will definitely happen. It goes up to 1% of the International Mortgage Loan amount and can even be lower than that for some countries’ citizens. The percentage is also higher for countries such as Egypt.
Documents Required to Apply for an International Mortgage Loan
Like any other loan, International Mortgage Loan also required the person applying for the loan to submit a few documents. This is a prerequisite, and so here are documents that one must submit:
- Their salary certificate or proof of income
- Civil ID
- Account statement for the last 6 months
- A liabilities certificate.
Now, it comes to salary transfer to a Kuwait-based bank account. One must understand that it is a requirement for Kuwait-based customers. However, such requirements for any of the customers could be considered for adjustments on a case-to-case basis.
Type of Property
There are a few restrictions while taking out an International Mortgage Loan in Kuwait. One must ensure that they have a fully completed property that they are taking out such loans in Kuwait. However, such a restriction is void in a country such as London. The facility of taking out an International Mortgage Loan on an uncompleted property or land can be provided in London. That being said, it is also subject to the property’s condition.
Other Real Estate Services
Wouldn’t it be nice that you could also get certain other real estate services along with the International Mortgage Loan? Yes, that is what some of the banks that give out loans in Kuwait facilitate. Although the services depend upon the country, but here are some of the standard real estate services offered:
- Property search services
- Registration of property (selling or buying)
- Facilitation of property evaluations
- Renewal of leases.
Installments for Repayment of an International Mortgage Loan
There are only a few options regarding installments for Repayment of an International Mortgage Loan. In most countries, it is usually done on a monthly basis. However, there are a few countries that allow quarterly installments as well.
International Mortgage Loan can be tricky at times, but it does not need to be. All you should do is find a good bank to make your life easier. Such is the case with the best banks in the world that offer hassle-free services and ease in your life. You also should ensure that you meet all the prerequisite criteria and submit all the required documents to easily acquire the loans in Kuwait.