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I have an excellent credit score and long history with my bank. I would like to buy an apartment outside of my country (the US). Since I can't take out a mortgage with my US bank for this purpose, I'm considering using their personal loan.

Are they likely to deny me if they know the loan is for this purpose?

Edit to include the detail that the loan is not extremely large: about 50k USD.

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    Another thing you could try is to get a mortgage with a bank in the same country where the real estate is located. But that might also be tricky, because they might demand that you have a credit history and a stable income in their country. The best bet would probably be to try a bank that operates in both countries.
    – Philipp
    Commented Jan 6, 2023 at 13:20
  • You could look at the bank’s loan application to see what that ask regarding what you’ll use the money for.
    – RonJohn
    Commented Jan 6, 2023 at 13:24

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The reason why the bank won't give you a mortgage for a property abroad is probably because the laws abroad do not guarantee them that they can repossess the property if you fail to pay your mortgage rates.

You could of course try to take a personal loan, but then the usual conditions for granting personal loans apply. The intention to buy a property abroad is neither a reason to grant it, nor a reason to not grant it. Yes, personal loan applications usually ask what you plan to do with the money. But unlike real estate loans, there is usually no legally binding obligation to actually spend the money on that. So a particularly smart plan is not an argument to grant it, because you could still trick the bank by wasting the money on something stupid instead.

So they will make the decision about whether or not to grant the loan solely on how credit-worthy they consider you based on your credit score and what assets you currently possess which they could get money from in case of a personal bankruptcy. And they will of course charge you the interest rate for personal loans, which is usually much higher than the interest rate for mortgages.

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  • I edited the post to include the detail that the loan would be for about $50k. I don't have collateral like a house or a car, but I have enough in my savings account to cover the loan.
    – Ken - Enough about Monica
    Commented Jan 6, 2023 at 12:58
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    @HorseHair-CensureMonica Updated, but that doesn't change much.
    – Philipp
    Commented Jan 6, 2023 at 13:01

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