The majority of borrowers in Germany chooses the traditional route of funding. You go to his bank, and ultimately from the account can be satisfied that the conditions offered are the best. Many borrowers are not even aware that there is an interesting alternative to the normal or habitual Mortgages Accepted. In countries like Japan or Switzerland, is the interest for many years been consistently below that in the EU. Does it perhaps now click Instead, the money needed to borrow in euros is also the possibility to include a so-called foreign currency loan and obtaining the capital in yen or Swiss francs. In January 2007, for example interest rates were the following: * Euro zone * Switzerland 4.5% Japan 2.5% * 0.4% is clearly recognized that you can get cheaper outside the euro zone for a loan. However, we again pay a surcharge when one borrows money from abroad, from another state. Processing feesExtra accounts in foreign currencies, etc. eat a portion of the interest-rate advantage again. Unfortunately, there is also another hook in the matter. Although interest rates have been relatively stable over the years, as unforeseen events (eg September 11) can bring stability to falter. Example, have you taken a foreign currency loan in Swiss francs and Switzerland increased their interest rates now, then get off at worst, worse than with an ordinary euro loan. The risk of unforeseen fluctuations in interest rates is not nearly as high as the risk of changes in exchange rates. For example, the euro lost ground against the Swiss franc devalued so you have to pay back more than you borrowed. Strong fluctuations in exchange rates are not quite so unusual as one might think. In the 90s, for example, George Soros became famous when he through massive currency speculation in the stock market, the Bank of England brought to devalue the pound sterling. A foreign currency loancan be quite rewarding, but you should be aware that we will make it the speculators. If you once for the inclusion of a foreign currency loan so decided, this means that we must keep a close eye on exchange rates in the future. In any case, you should look for before a decision is a conversation with an independent financial adviser.