The WSJ is reporting that the British bank Lloyds TSB is offering foreign-denominated mortgages to US residential buyers. FTA:
A 30-yr mortgage in the US currentnly hovers near 6.4%, which sounds low until you look to Japan, Singapore or Switzerland, where rates are in the 2.6% to 4.6% range.
The risk in this is that you have to make payments in the foreign currency, and if the dollar weakens your house payment goes up. The are probably ways to hedge against this. Also, payments are made quarterly, no big deal.
I think this is great. It is about time that the US mortgage industry started facing international competition like every other US industry.