Why buy a U.S. home now
Despite the weak Canadian dollar (CAD), now is actually an ideal time to buy your U.S. dream home.
Owning trumps renting
Millions of Canadians travel to U.S. Sunbelt states every year to escape the harsh Canadian winter and enjoy amenities like beaches, golf, dining and more. With below freezing weather and snow in Canada compared to sun and palm trees south of the border, who could blame you! However, if you are renting property while in the U.S., you are missing out on the many benefits of home ownership. In fact, many cross-border snowbirds don’t realize that just a few months of rent could be enough for a down payment on an equivalent property.
Buy now and make the most of your investment
Now is actually an ideal time to buy your U.S. dream home. Here’s why -
- U.S. housing costs are low – Housing in the U.S. is much more affordable than in Canada, making U.S. real estate a good investment option - whether you are looking to diversify assets, leverage the property for rental income or make annual vacations easier. The median cost of a home in Toronto is about $600,000, yet in Palm Springs, California, the average cost is just over $300,000. Plus, market appreciation trends in locales such as Southwest Florida show a 7-10 percent year-over-year increase, meaning your property’s value will continue to increase while your monthly mortgage payment stays the same.
- Rental income can offset financing costs – If you decide to rent out your U.S. home, rental income could easily cover your costs and more - U.S. taxes, insurances and homeowner association fees. It can take as little as a few months of rental income to cover these expenses. And rental fees are paid in U.S. dollars so there’s no need to worry about the exchange rate.
- You will always have a permanent U.S. location – owning a home ensures you have a permanent location that is always available when you travel to the U.S.
Why financing your U.S. property makes sense
While it is still great time to buy a U.S. home, it’s not a great time to pay cash for one. The cash typically comes from the equity in an existing Canadian property, cashing out investments or using savings, all of which require currency exchange. And, with the Loonie at a 13-year low that means a significant foreign exchange hit. Plus by choosing to finance your U.S. home now, you avoid the one-time cost of currency exchange and with RBC Bank you have the option to pay off your mortgage¹ with no penalty if the CAD improves.
As the only national lender dedicated to Canadians purchasing real estate in the U.S., RBC Bank offers tailored mortgage solutions including no foreign national premium fees and the ability to use your Canadian credit history and your relationship with RBC Royal Bank™ to help you secure financing.
RBC Bank will provide you expert advice because we ‘speak Canadian”. In short, you can rest assured that RBC Bank understands the unique needs of Canadians securing a U.S. mortgage.
Learn more about U.S. mortgages or call our Cross-Border Mortgage Team at 1-866-283-5928.
1 All loans are subject to approval, including verification of acceptable income, creditworthiness, and property valuations. Minimum and maximum property values and maximum loan-to-value ratios apply. Homeowner’s insurance is required for all loans, and flood insurance is required if property is located in a Special Flood Hazard Area. Escrows may be required.There are closing costs associated with these products.