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Foreign Currencies & Mortgages
When dealing with multiple currencies, setting up a mortgage safeguard to hedge against currency fluctuations is an important part of any smart investment strategy. Working through mainstream banks to do that can be time consuming and inconvenient. Moreover, international wire transfer fees and commissions charged by your bank often add up to a healthy sum. International brokers, specialists in this field, will often offer exchange rates that are 5% (5 cents on the dollar) better than what you would get at your own bank, saving literally thousands of dollars on large transactions. Working with an international currency broker will save you time and money, and eliminate one unknown from an important property purchase.
Fund Security and Currency Options for Purchasing a Home
Finding your dream home in Paris is a great experience, but when it is time to make the payments and transfers money internationally, the options available may be daunting and laced with uncertainty. To give careful consideration to the foreign currency exchange options available, as you have to the property you’ve purchased, is the difference between saving or losing money over the long term. A FX Broker will have a range of options available for transferring money abroad including Forwards, Spot contracts, Limit orders and Stop Loss orders.
Protect Yourself Against Market Fluctuations
Mortgage repayments and international money transfers are, when made over time, subject to considerable rate fluctuations as the markets invariably move up and down. That is where a contract option like a Forward from a currency broker comes into play. With a product like this, you’re able to secure the rate of exchange for your successive currency transfers for up to 24 months in advance. This way, you know exactly what it is that you are due to pay with no nasty surprises month-to-month when you are sending money to and from abroad.
If you are looking to make international transfers in lump sums, you may require a different option however. A spot contract is the simplest currency option whereby you purchase the required currency then and there, at the going market rate. A currency exchange broker, like FC Exchange, purchases currency in bulk at wholesale rates, unlike a bank, so they are able to offer better rates of exchange than a bank can typically provide. Particularly for large purchases – like your next Paris apartment – exploring the best options for currency exchange rates is key.
Contact Paris Property Group to learn more about buying or selling property in Paris.