Currency ServicesHiFX Newsletter January 2008

Financial New Year Resolutions Home and Abroad

One in seven Canadians (14 per cent) currently own a vacation property and one in four (28 per cent) would like to purchase a vacation property in the future. With the cold winter weather in full force, for many Canadians looking for a place in the sun, the un-official start of the buying season is around the corner now.

Resolution #1 – ‘I will save money when buying or selling a property abroad’

People can save money when buying a property abroad by pre-planning the currency aspect of the transaction. Fluctuating exchange rates make a huge difference to the final price of their dream home overseas – this is especially true when buying ‘off plan’ which requires several ‘stage payments’ during construction. This process can take up to a year in which time currency may have fluctuated by as much as 20% for some volatile currencies. People should consult a currency specialist to fix the exchange rate on their purchase – you would never agree to buy a property in your own country unaware of the final cost; if you agree to buy an overseas property without fixing the exchange rate at the outset, that's exactly the gamble you are taking.

Resolution #2 – ‘I will shop around to get the best deal on my international mortgage’

Anybody whose overseas mortgage is up for review should make sure they shop around for a better deal. Don’t just go to your bank as there are an increasing number of overseas mortgage specialists who can search the market and find a mortgage which is right for you.

But beware – many independent mortgage brokers will charge you introducer fees of up to 2% which on an overseas mortgage of $200,000 could mean you shelling out $4,000 for the referral. Make sure you use a broker that doesn’t charge you any up front fees.

Resolution #3 – ‘I will save money on my currency transfers abroad’

Maintaining a property abroad can require several regular payments abroad from mortgage repayments and maintenance payments to repatriating rental income. People can save thousands by using a currency specialist rather than their bank to transfer these payments. Currency specialists do not charge commission or transfer or receiving fees – typically 2% and 0.5% respectively of the amount transferred. Furthermore currency specialists allow you to fix the exchange rate of payments into a foreign currency account for up to two years – offering peace of mind that the value of your repayments will be the same each month.

We hope you find these tips helpful and wish you continued business success in the New Year!

To find out more about the currency services HIFX provides, simply contact Jody Cracknell direct on (415) 321 6384 or e-mail jody.cracknell@hifx.com or visit www.hifx.com. Please remember to say referred by 'Americans in France'.