Okay, any sound investor including whatever bank or money source is behind this can make more than 2% on their money with a government backed treasury bond, so why would they loan out their money at 2%. It just doesn't make sense.
If it sounds too good to be true, it probably is.
Why can we offer such low rates? We are offering mortgages from a yen-based United Kingdom AAA rated bank (LloydsTSB, since 1765) for purchasing or re-financing residential properties in the pre-qualified areas. Japan offers the lowest mortgage rates of any nation in the world. Why? Because the Japanese government's lending rate is so incredibly low. That's it, nothing more.
Take a look at these lending rates: US 6.04%, New Zealand 8.7%, Dubai 9.02%, UK 6.4%, Australia 7.33% and Japan 1.92%
The Bank of Japan (Similar to the US Federal Reserve) lends money to banks at around the .5% mark, the lending bank places 1% to 1.5% on top of that for their own profit for the risk of lending it to you. That is how you arrive at the 1.5% - 2% rates.
In America the Federal Reserve controls inflation by raising or lowering the borrowing rate. Today they'll lend the banks money at around the 5% mark, then the US banks place their profits of 1% to 1.5% on top of that as do all other banks around the world for the risk of lending it to you. That is how you end up with a 6% - 6.5% rate today.
If a US lender is offering 1% mortgages, its only because they are deferring the other 4% plus to a balloon payment down the road 1 year or 3 years later, which sounds good up front but will cause an estimated 1.7 million foreclosures in 2007 because of these sneaky (but legal) loan practices.
We have found a way to bring Japan's financial stability and low financing to the rest of the world. We are responsible for all the legwork, all pre-loan information and sifting out of qualified clients falls to us. Lloyd TSB's representatives will only talk to clients after the loan application has been accepted and an official offer is on the table.
More that's too-good-to-be-true and most-likely-a-scam...
You don't need an appraisal! Just send them all your personal information. Can't cover the postage? Send postage due. They'll pay! Then "the bank will order and pay for the appraisal".
If you ask me, this is a bit more sophisticated that the Nigerian emails, but no more legit.
And I say this wishing, oh, wishing it were true.
Wow. I can't believe what I just read. I'd love for a foreign entity to have 1st lien position on my property. And invest in a mortgage where they US laws don't apply. Sign me up!!!!
Hi guys,
No, really, healthy scepticism is a good thing, just don't let it prevent you from investigating something further to see if it is in fact true. I could say it is true - mortgage and refinancing at 2% - but that will not make it so.
What I would ask you to do is look into it a bit further for yourselves and don't just base your opinion on the limited information I can make available here. Or even on just that provided on the website.
Please note some things on the website you may have missed. All our contact information is freely available on the contact page. Phone number, physical and postal address, email address and you will also find our Licensing and contractural details that allow us to represent Lloyds TSB. Lloyds TSB is one of the biggest and most respected and trusted banks in the world.
Here are some details:
Lloyds TSB Group plc
Lloyds TSB Bank plc is part of a financial services group that has been a trusted name in banking since 1765.
Today, Lloyds TSB Bank plc is one of the world's largest banks with assets of over GBP252 billion and more than 70,000 employees around the world.
The Lloyds TSB Group provides a wide range of domestic and international banking services to personal and commercial customers, including:
Retail banking
Insurance
Wholesale banking
Unit trusts and investment management
Consumer credit and card services
Key Facts and Figures
Lloyds TSB Group at a glance
Total assets £252 billion
Total number of customers Over 15 million
Number of employees Over 70,000
Total capital ratio 11.3%
Lloyds TSB Bank plc deposit credit rating (Moody's) AAA
Lloyds TSB Group plc long-term rating (Fitch IBCA) AA+
UK ranking (home insurance) 1st
UK ranking (current accounts) 1st
UK ranking (mortgage lending) 3rd
Lloyds TSB Asia
Lloyds TSB has been present in Asia since the 1970s with offices in Hong Kong, Singapore and Malaysia. Our areas of expertise include:
Overseas Property Finance
Investment Services
Multi-currency Deposits
Offshore Banking Services
Please feel free to check our legitimacy with Lloyds.
Again, I would encourage you to also look at the financial business scene in Japan to understand how we are able to offer a yen based loan at such low rates of interest. You can do this by some simple research. Follow links to sites on the subject (independent sites) from our research page (see sig):
And in conclusion, it should be noted that we are all living in 'a global village' now. Business is being done all over the globe now almost as if we all lived in the same city. The internet, phone and satellite communications, modern airlines reducing travel times and distances to what can sometimes amount to a long daily commute, it all helps to make the world a smaller place and enables us to do business globally not just locally. I myself have been living in Tokyo, Japan and Brisbane, Australia, commuting between the 2 for the last 7 plus years. I have lived and worked in England, New Zealand, Hawaii, Japan and Australia.
The question in the end is: do we want to stay in the 'boat' or step out and discover there is more opportunity out there than we could possibly imagine.
So Gram, are these ARMs? Because BOJ just hiked and I imagine will continue to do so, albeit gradually, given the growth rates Japan is seeing right now.
Also, is your institution really interested in small multi-family and even SFR mortgages? Is there a minimum amount? Because carry trade money is usually the domain of very high net worth individuals and institutions.
Just curious.
Melinda
Graham,
My question is not whether this will work, but what level of protection is offered from a loan like this. Do federal and state laws regarding real estate apply to a foreign bank? What if someone goes into foreclosure? Are they subject to the bank rules or US law? The legal aspect is my biggest concern...
Thanks,
My understanding is that the loan and the foreclosure prodecures are dictated by wherever the property is located. You can have a loan from a company in Florida, but if the property is in Texas, then they have to follow Texas laws. It would seem that the same would be true for international loan originators.
I'm still not sold, and my state doesn't even qualify so it doesn't really matter to me. :D
Thanks for the input Ryan. I agree, I'm not sold either. These types of questions are exactly what my clients would be asking me and I don't have answers. Maybe Graham could elaborate. I'm sure it's probably on the up and up but convincing an American buyer would be difficult...
I was strolling the biggerpocket attic and came across this...
Yen based loan orginating from the UK...hmm, let's see...
Who absorbs the currency exchange when it is converted not once, but twice (before being lent out as greenback).
I've spent a good period of my adult life in SE Asia and can attest that the Japanese do have the lowest mortgage rates in the world, but 2% it is not.
U.S. Treasuries pay more and both the Japanese and English have access to it; why would they want to give away money again?
This smells sushi...
Regards,
Scott Miller
Thanks for all the great questions. I don't have time this morning to answer all that has been raised in this forum but would encourage you all to visit the site ...
We have done some upgrading and now have an extensive Knowledgebase that will answer most of the common questions.
Kind regards
Its no scam, its the newest and greatest investment opportunity for everyone!
My wife and I have 2 homes now at 2% and my sister Eve in Vancouver Washington just switched over a rental home from a 6.55 to a 2% rate for 27 years!
they were paying 947 a month and now pay 205 a month! If thats not the greatest then tell me what is!
All my friends and family are switching over, why not with the new policy change all of us as of this Janurary can switch are rental properties to a 2% or lower rate.
See for yourself at 2percentmortgages.com
My family and all my friends have switched over why not everyone else?
Wow...was that last post funny or what? That sounded like copy for a 15 second radio spot. Can you say SHILL....LOL, what a joke.
I LOVE SHILLS! Aren't they a kind of leech or germ?!?
Listen "Aaron", I'm not bashing the 2% mortgage program. I'm poking fun at your obvious pitch. You wouldn't happen to know Graham, would ya? LOL
Go look up the word Shill...
hey guys,
y'all need to leave him alone. that was undoubtably a sincere post.
i find it hard to believe that he's so desperate to sell that money that he advertises it here, but there's no national ad campaign. if it's the "real deal" i recommend your company invest in a little advertising. there'll be a line at your website.
-dean
Wow you guys are hard on a guy! Today was my first day ever on a forum.
Is it always this hard? Maybe my 1.9% deal for 30 years is normal for you Chris or you Dean. Sorry to offend you if this is normal, your the experts.
whats the rate on your house Chris and if its better, tell me where you got it. I was so excited with my new rate -- I thought it was special, please inform me of where you got a better one.
Sincerly... I have 3 kids that are costing me a bundle in private schools and if you know of a place where I can get an even better deal, please tell me.
And I told me sister Eve in Vancouver and she trusted me with her place and now has a 2% rate for 27 years.
If you have a better deal then I have been misinforming my family and friends, I've been telling them all to go to 2percentmortgages.com because its by far the lowest rates in the world, -- Am I wrong? Where did you go and how much do you pay? Or do you just get online to dish everyone?
Seriously you put me down for being upfront with you, so show me I'm wrong?
Aaron
Wow you guys are hard on a guy! Today was my first day ever on a forum.
Is it always this hard? Maybe my 1.9% deal for 30 years is normal for you Chris or you Dean. Sorry to offend you if this is normal, your the experts.
whats the rate on your house Chris and if its better, tell me where you got it. I was so excited with my new rate -- I thought it was special, please inform me of where you got a better one.
Sincerly... I have 3 kids that are costing me a bundle in private schools and if you know of a place where I can get an even better deal, please tell me.
And I told me sister Eve in Vancouver and she trusted me with her place and now has a 2% rate for 27 years.
If you have a better deal then I have been misinforming my family and friends, I've been telling them all to go to 2percentmortgages.com because its by far the lowest rates in the world, -- Am I wrong? Where did you go and how much do you pay? Or do you just get online to dish everyone?
Seriously you put me down for being upfront with you, so show me I'm wrong?
Aaron
i find it hard to believe that he's so desperate to sell that money that he advertises it here,
Sounds like a backhanded slap at BiggerPockets to me . . . You're saying you have to be desperate to post here??? lol - just kidding
As for our 2 guests from Tokyo. I do find it interesting that in 2 days I have 2 visitors who are located very close together in a city on the other side of the planet. Not only that, but you are the first 2 posters on the site from Tokyo since our inception. What are the odds that you both arrive the same time and are pushing the same product - come on now!
Certainly smells like some sushi to me. If the product is so revolutionary, you wouldn't have the time to post here trying to get new business.
Please don't take us for a bunch of fools.
OK...Let's put this to bed. It just seems a bit fishy. 2% Mortgage launches their new website. New guy named Aaron's first post sounds like a TV/Radio ad for 2% Mortgage. His location is Tokyo, same location where Graham (owner of the website) is promoting his website out of...
LOL...enough said.
i don't know josh... how about a front-handed slap? i find it hard that their international advertising blitzkrieg hinges on my bad attitude (and the rest of the biggerpockets naysayers). reminds me of that guy that had 2 different accounts, so he could ask himself for loan advice... at least he let it go.
When I first posted to this forum I thought it was like the heading says...
Quote - Creative Real Estate Financing - There are other ways to finance a property than the standard mortgage. Let's get creative people!
I thought that mentioning the idea of an off shore mortgage might be creative but may just be a little outsite the box. Looks like it is for some. It is something that we at 2 percent mortgage dot com only got the go ahead for from Lloyds early this year.
When I came on board a few weeks ago my background, internet marketing/website design and administration, lead me to thinking that introducing the concept through appropriate forums, to get the ball rolling, might be one way to go. I would love to promote in a bigger way but I don't have the 'biggerpockets' needed just yet. Will get there though. We have all got to start some where... and besides, it has gotten us all thinking right? Oh, and yeah, I am fast getting to the point where I will not have time to post in forums as it's taking off so fast. More applications filed with Lloyds today!
It's been intresting being here though. I appreciate the cynicism, the skepticism... helps to clarify what is working and what is not.
Sushi.... bring it on! The smell, the taste, it's got to be the best food on the planet. I'm into it everytime... you should be too!!
Thanks guys!
Graham,
Let's all assume for a minute this is 100% legit. Can you explain to all on the forum how a broker or loan officer makes money with this program.