Purchasing a Property overseas? Or have an existing property overseas and need to make mortgage payments?
World First can help you save some money!
If you’re buying a house overseas, or perhaps you already have one, you’ll want to be sure you’re not paying more than you have to when paying either your deposit, full purchase price or on regular mortgage payments or associated expenses.
Well, the good news is that because you’re reading this, you’re in the right place, as WorldFirst Foreign Exchange can help you save money on your payments and make maximise your transfers.
That’s because they offer better exchange rates and zero fees, which means your money goes further.
When transferring funds internationally via your bank you are likely to be hit by 2 or 3 different fees, commissions or charges. This does of course vary slightly from bank to bank, but typically you’re going to be faced with the following when sending money internationally:
- Cable / TT fee – typically in the region of $30 SGD - $50 SGD from the remitting bank and in some cases by the beneficiary bank too.
- Cable commission – around 1/8 of a percent and can be as high as $120 SGD.
- Handling commission – around 1/8 of a percent and can be as high as $120 SGD.
- Then we finally get to the exchange rate, which typically range from 0.90% - 1.5% +
On a year’s worth of mortgage payments, you could save between $360 - $600 SGD on outward cable fees alone by using a currency specialist such as WorldFirst.
Because exchange rates can be affected by literally anything, including employment figures, bank announcements, political unrest and other items, they can fluctuate dramatically from one day to the next.
What does this mean for you?
Whether you’ve just bought a property overseas (let’s say in the UK for example) or are making regular mortgage payments, what you have to pay in Singapore dollar terms will change constantly. Yes the GBP price is fixed, but as exchange rates move the same property either becomes more or less expensive until the day you actually make payment.
Now, this can work either for or against you.
If the foreign currency weakens then great, you’ll need less SGD to purchase the same amount of GBP; however, if the foreign currency gets stronger then you’ll find yourself paying more than what you anticipated at the time of purchase.
Should you be making staged payments or regular mortgage payments over a number of months, then the risk of currency movement is ever increasing too and the fluctuations in price will affect your payment at each stage.
This leaves us with the question of how can you protect yourself against such currency fluctuations?
With WorldFirst you can lock in a rate for up to 6 months in the future, known as a ‘forward contract’, allowing you to protect and maintain your purchasing power so that any adverse rate movements don’t affect how much you have to pay.
This way, you’ll know what you’re going to pay, and should be reassured that regardless of what happens in the currency markets, the amount you pay won’t increase.
You also have the opportunity to maximise exchanges and take advantage for the future should rates move lower in your favour – a great example is GBP/SGD. Following ‘Brexit’ GBP plummeted from above 2 to 1 against SGD hitting a low of 1.6480 but then recovered over the next 6 months back above 1.8300 – a move of over 10%.
On a £100,000 GBP property purchase / payment that’s a difference of £10,000 GBP ($18,300 SGD)!
Negotiating the currency markets can be a bit daunting and everyone has jobs and other commitments that don’t make it a priority for them; but when you’ve got the right people on your side, it’s a whole lot easier as the friendly team at WorldFirst can do all of this for you…and save you some money along the way too!
Find out how WorldFirst can help by calling on +65 6805 4370 or check them out HERE.