Our Cross-Border Mortgage
Specialists are here to guide you
through the process.
RBC Bank makes financing real estate in the U.S. simpler for Canadians. As the only national mortgage provider dedicated to helping Canadians purchase property in the U.S., we're able to meet your mortgage needs and more smoothly guide you through the process.1
Benefits of a U.S. Mortgage
The U.S. mortgage industry is highly regulated. That means securing a mortgage loan in the U.S. is more complex and takes longer than in Canada. Yet, there are several benefits to financing real estate in the U.S. with RBC Bank.
- Canadian credit history. We'll use your Canadian credit history to help you secure your loan.
- We get to know you. For RBC Royal BankTM clients, we'll review your full RBC relationship to know as much as we can about you.
- No prepayment penalties. You can repay your mortgage at any time you like.
- We "speak Canadian". By specializing in real estate lending for Canadians, our dedicated team of cross-border mortgage specialists expertly guide you through the differences between the U.S. and Canada and put the process in terms you understand.
- No foreign national fee. Many U.S. banks charge Canadians a foreign national premium, which can add 1 to 3% to your mortgage rate. RBC Bank never charges a foreign national premium fee.
Determine how much you can borrow.
There are many financial decisions involved in purchasing or refinancing a home. We provide calculators to provide assistance as you get started. Click here to get an idea of what your monthly payment would be if you know the loan amount you're looking for. You'll also be able to print an amortization schedule to see your payment breakdown for the life of the loan.
You may also want to consider getting a pre-qualification which tells you how much you may be qualified to borrow and provides a clear picture of how much you can comfortably afford as well as your estimated monthly payment. Often, U.S. real estate agents will ask if you are pre-qualified and will want you to submit proof of your pre-qualification along with the offer to purchase. It is important to start the pre-qualification process only if you are within 90 days of purchase. Pre-qualifications require a credit inquiry and are only valid for a limited period of time.
Calculate your down payment and confirm your property type.
A minimum down payment of at least 20% of the selling price of the property is required, but that can vary depending on the property’s intended use as your primary residence, a second home, or an investment property. Use the guidelines below to know which type of property you are financing:
- Primary residence - where you live full-time throughout the year. Requires a downpayment of at least 20%.
- Second home - a property available at least 2 months out of the year for personal use in addition to your primary residence. Requires a downpayment of at least 20%.
- Investment property - a property intended to generate rental income for the majority of the year. Please note, RBC Bank only finances investment properties for existing RBC Royal Bank clients. Requires a minimum downpayment of at least 40%.
Choose the right real estate loan for you.
- Adjustable Rate Mortgage (ARM). Our adjustable rate mortgages (ARMs)* lock in your rate for the first three, five, or seven years and feature a 30-year ammortization as well as no prepayment penalty.
- Home Equity Line of Credit. For credit that's available when you need it, our Home Equity Line of Credit1,2 provides a flexible option for accessing funds, all while avoiding the currency exchange expense. Home Equity Lines of Credit are only available for current RBC Royal Bank clients.
1 All lines and 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. Equity Line and corresponding APR will be priced using a base rate of Prime Rate (as published in The Wall Street Journal, Eastern Addition, on the 25th day of the month.) Current rate is 3.25% as of April 30, 2014, plus or minus a margin disclosed at the time of application. Rates are subject to change based on changes in the Prime Rate, but will not exceed 18%. Paying the minimum payment may result in a balloon payment when the line matures. In addition to the costs listed above, third party closing costs (vary by state) may range from $900 to $9,000.
2 Home Equity Lines of Credit are not offered for properties in Texas. Traditional mortgages are offered in all 50 states. Home Equity Lines of Credit are not available for investment properties.
* Example: 3-Year ARM calculation assumes a $250,000 loan amount, 2.375% interest rate, 2.463% APR, with 25% down payment, amortized over 360 months = $971.64 monthly payment. If the down payment is less than 20%, mortgage insurance may be needed on the loan. This could increase the monthly payment and the interest rate. Rates subject to increase after consummation.
Example: 5-Year ARM calculation assumes a $250,000 loan amount, 2.750% interest rate, 2.840% APR, with 25% down payment, amortized over 360 months = $1,020.61 monthly payment. If the down payment is less than 20%, mortgage insurance may be needed on the loan. This could increase the monthly payment and the interest rate. Rates subject to increase after consummation.
Example: 7-Year ARM calculation assumes a $250,000 loan amount, 3.375% interest rate, 3.468% APR, with 25% down payment, amortized over 360 months = $1,105.25 monthly payment. If the down payment is less than 20%, mortgage insurance may be needed on the loan. This could increase the monthly payment and the interest rate. Rates subject to increase after consummation.