As an adult, your financial life is complex, and only getting more so. This is true whether you have a lot of money or a little. And the diversity of your financial life is difficult enough to deal with, even when you’re dealing in a currency you’ve used all of your life. Now imagine trying to navigate the waters of a mortgage loan or other borrowing situation, when you’re in a country that is not your home.
Tens of thousands of people find themselves in this situation every year. For Americans and Canadians, this often occurs when becoming a citizen of another nation, often in Europe, Asia, or Central/South America. Many people from around the world deal with the same difficulties as they expatriate the North America. In every scenario, the difficulties are many.
For one, most individuals in these circumstances will be dealing in a second language, one in which they may not be fluent. Conversational English or Spanish is enough for a trip to the grocery store, or for a casual conversation at a party. But the complex legal and financial terminology, contained in even the simplest of loan documents, is far beyond the vocabulary of an elementary speaker.
So too are the currency differences involved in these transactions. Americans, for example, are accustomed to making financial agreements using the American Dollar as a barometer. The Dollar has been with them forever, as the basis of every purchase ever made, for everything from a candy bar to a sports car. But Yen into the equation, and suddenly the transaction feels like it is alien, even if basic metrics like interest rates are still recognizable. But even these are based upon a different interbank rate than the one established in the United States. How is the expatriate supposed to be sure that the loan arrangement is a good one?
This is where international loan intermediaries come into the picture. While a loan intermediary can fulfill many different functions, one of the most important is to help broker a deal between an foreign consumer in a nation where he or she may not be equipped, linguistically or culturally. Loan intermediaries help broker these deals for everyone from private citizens to national governments.
Let’s say, for example, that you’re trying to buy a holiday home in Sweden. A loan intermediary, either a company or a private individual, will help organize the deal so that the terms are clearly commensurable between English and Swedish. You will have all of your questions answered, and the loan will be just as easy to understand as any that you’d make in your home country.
Loan intermediaries aren’t expensive. Most simply charge a tiny percentage of the loan being issued. The benefit is much like that of getting a home inspected before you buy it. Intermediaries are middle-men who can spot contract issues written in a language you do not speak. In a matter of hours, you can be sure that the loan you are about to sign off upon, is both affordable and with desirable terms. In this way, an international loan intermediary can give you peace of mind in what would otherwise be a very difficult situation to maneuver.