How to Save on Overseas Mortgage Payments?

Last Updated: 08 Dec 2022

Are you paying off your mortgage for an overseas property? Make your money go further with a money transfer provider who offers better exchange rates than your bank.

Arranging an overseas mortgage abroad makes financial sense if favorable exchange rates, lower interest rates, and high loan-to-value ratios are involved. For instance, countries like Spain in the Eurozone not only have sunny climes to offer but also have some of the lowest interest rates¹.

Lower rates translate to lower mortgage repayments, which is a huge motivation if you're driven by a burning desire to save money. The good news is that once you secure an international mortgage, you can make your money go even further in the long term when you transfer money every month to cover the mortgage payments.

Here's what you need to know to start saving on your cross-border loan payments.

Choose your Money Transfer Provider Wisely

One of the first things savers should do is find a currency exchange specialist that speaks their language better than the banks. This is because banks are usually only suitable for occasional transfers involving small amounts.

Otherwise, if you're transferring funds internationally via your bank to cover loan payments, you will likely be hit with high exchange rate markups, expensive transfer fees, and other hidden fees. Using a currency specialist such as MTFX is more cost-effective for larger or regular international transfers.

Because MTFX conducts large volumes of business, you get a more competitive exchange rate, 3-5% lower than banks, and low transfer fees. Starting now, you could save hundreds or thousands of dollars on a year's worth of mortgage payments if you register your free account to send your next payment.

Protect your Money from Exchange Rate Fluctuations

While an international mortgage has its positives, long-term currency exposure carries its own risks. Let's say you've purchased a property in Europe. Every time you send money from Canada to Europe, what you have to pay depends on whether the Euro is weakening or more robust.

Ideally, you want the exchange rate to remain fixed in your favor, but unfortunately, the market is not so tame. Your best bet is to plan payments, time your transfers, and use forward contracts to lock in a favorable exchange rate for up to two years. Booking future transactions at a fixed rate means you know exactly the exchange rate you'll use on the day you make payment.

Hence, you can budget more accurately and circumvent unpredictable foreign exchange markets.

Get Guidance on Making an International Mortgage Payment

With the right hedging strategy, it's possible to minimize the risks of foreign currency loans. Fortunately, you can still make a foreign currency mortgage work for you without being a sophisticated investor. After all, you probably have many other commitments that prevent you from watching the market 24/7 and staying up to date on the latest movements.

At MTFX, we have a team of market experts that make it their bread and butter to track currency trends. This is essential to keeping costs low for you, so don't hesitate to ask questions and get expert advice when you receive a call from an MTFX currency specialist after registering your account.

The ultimate goal is to set up an online transfer platform to meet your needs, making the process of paying an international mortgage easier.

Send Large Sums of Money Overseas

Another way to minimize the risk of exchange rate fluctuations is to capitalize on favorable rates with lump sum payments. It's an especially great approach if your overseas lender allows you to make early repayments without prepayment penalties.

When you make large payments, you're paying down the principal on your mortgage faster and saving on interest. Your MTFX account is the key to safely sending large sums of money abroad, accelerating equity build-up on your foreign property.

How to Pay off your Mortgage Abroad Online

Paying off your offshore mortgage with MTFX is quick and easy. Signing up for your free online account takes less than five minutes. Once set up, you can book a great rate and fund your account via bank transfer or bill payment.

Next, input the transfer details, including receiving country, amount, and currency, before double-checking for correctness. To transfer money abroad, you'll need your personal details and the reason for the transfer.

You also need the beneficiary's name, address, and account number, as well as the bank name, address, and SWIFT code. Finally, confirm your transfer to send your money on its way.

Setting up a Regular Overseas Payment Plan

As a responsible borrower, it's in your best interests to make timely payments, always. This not only saves you on late fees but also boosts your creditworthiness. With the right provider, this becomes easier since you don't have to worry about the hassle of inputting transfer and recipient details for each monthly overseas transfer.

For example, with MTFX's automation technologies, you can eliminate the error risks of manual data entry. In addition, scheduling recurring payments saves time and helps you stay on track with your mortgage payments without having to think about it constantly.

Get started by opening a free account and setting up a regular standing order for a specified amount and date. Our automation technologies will validate the data when the time comes, exchange the desired currency, and deliver the funds to your chosen foreign bank account on time.

Additional Savings to Consider

There are many ways to save with MTFX. Besides saving money, you also save on time, convenience, and safety. This is precisely how international money transfer providers like MTFX differentiate themselves from banks – by offering faster, cheaper, and value-added services.

With a currency specialist, you can skip the bank and perform your international money transfer online with a few clicks and within minutes. In addition, using our secure online platform is an extremely safe method of transferring money.

You can transact confidently, track your transfer online, and save on the frustration of missed payment deadlines with quick turnaround times of 24-48 hours.

Send Money with MTFX and Save Again and Again

Why use MTFX to make regular mortgage payments for your existing property overseas?

Automated repeat transfers for hands-free international payments.
Currency rates that beat high street banks by 3-5%.
Access to risk management tools and expert assistance for better control of your money.
Secure, 24/7 online platform that works for any repayment schedule.

Ready to send money abroad? Open an account today and save on each transfer compared to using your bank.

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