{"id":34,"date":"2011-02-17T00:53:33","date_gmt":"2011-02-17T00:53:33","guid":{"rendered":"http:\/\/riverbankfinance.com\/blog\/?p=34"},"modified":"2011-02-17T12:35:18","modified_gmt":"2011-02-17T12:35:18","slug":"mortgages-around-the-world","status":"publish","type":"post","link":"https:\/\/riverbankfinance.com\/blog\/mortgages-around-the-world\/","title":{"rendered":"Mortgage’s Around the World"},"content":{"rendered":"

\"around-the-world\"<\/a>I thought it may be interesting to share some information on how\u00a0other countires\u00a0handle their mortgage markets.\u00a0 Interestingly enough, most countries require much larger down payments to buy a home.\u00a0 Here are a couple of countries I found some\u00a0information on.\u00a0 In Japan a buyer needs 10% down, in India a buyer needs to put 15% down, in most Asian countries including China\u00a0that amount grows to 30% down payment, and lastly in Vietnam a buyer needs to put a whopping 40-50% down payment.\u00a0<\/p>\n

Here in the U.S. we still do not even have a down payment requirement in some circumstances.\u00a0 If you are a veteran you can apply for a VA loan which requires no down payment.\u00a0 You also can qualify for no down\u00a0loan if you decide to live in less densely populated area through\u00a0a\u00a0USDA loan providing you meet the income restrictions those loans have in place.\u00a0 If you do not qualify for no down payment you can still get into a house with as little as 3.5% down payment through an FHA loan or 5% with a conventional loan.\u00a0 When you start comparing our down payment requirements in the U.S. with other countries you can really see the benefit of living in the\u00a0“Good Ole USA”.<\/p>\n

After looking more in depth\u00a0into mortgage markets around the world, I also found that most countries have different kinds of mortgage terms then we do in the States.\u00a0\u00a0It seems as if it is more common for homeowners to\u00a0opt for\u00a0adjustable rate mortgage (ARM)\u00a0loans instead of fixed loans in other countries.\u00a0 For example, in Canada and Britian\u00a0prospective home-buyer’s cannot even get a fixed rate mortgage and instead have to settle for an ARM loan.\u00a0 If an individual does get a fixed rate loan they typically have to set up a meeting every 2,3, or 5, years with their bank\u00a0to resign\u00a0and extend\u00a0their loan.\u00a0 The bank has much less risk with these shorter\u00a0length terms because it is possible they would not renegotiate\u00a0your loan\u00a0especially in the unfortunate circumstance of an unexpected\u00a0job loss etc.\u00a0 We do have loan terms like these in the U.S. and they are called “Balloon’s”.\u00a0 They are definitely not very popular.\u00a0 For good reason…<\/p>\n

Lastly,\u00a0rates in other countries also vary greatly.\u00a0 In Japan it is possible to get a short term adjustable rate mortgage at an unbelievably rate of .11%.\u00a0 On the other hand, you can also expect an interest rate of 9.5% in Vietnam.\u00a0 If you remember, Vietnam also had the 40-50% down payment requirement…OUCH.\u00a0 Here are some other rates from around the world- Canada 3.5-6.75%, Germany 3.5-4.5%, and finally Australia 7.1-7.9%.\u00a0 Our interest rates here compare favorably or are better then what you can find around the world.<\/p>\n","protected":false},"excerpt":{"rendered":"

I thought it may be interesting to share some information on how\u00a0other countires\u00a0handle their mortgage markets.\u00a0 Interestingly enough, most countries require much larger down payments to buy a home.\u00a0 Here are a couple of countries I found some\u00a0information on.\u00a0 In Japan a buyer needs 10% down, in India a buyer needs to put 15% down,… Read more »<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-34","post","type-post","status-publish","format-standard","hentry","category-local-michigan"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/posts\/34","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/comments?post=34"}],"version-history":[{"count":3,"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/posts\/34\/revisions"}],"predecessor-version":[{"id":38,"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/posts\/34\/revisions\/38"}],"wp:attachment":[{"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/media?parent=34"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/categories?post=34"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riverbankfinance.com\/blog\/wp-json\/wp\/v2\/tags?post=34"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}