This infographic shows why financing your U.S. home may make great sense, and how much cash you’ll need at closing if you pay all cash versus financing your home purchase.
Think the only way to buy a home in the U.S. is to pay cash? Think again. Financing a U.S. property may make great sense – and is easier than you might expect. See how financing with RBC Bank can help manage your cash flow better and get you into your U.S. dream home sooner.
Cash vs. Financing a $400,000 U.S. Home
Here’s how much cash you’ll need at closing if you pay all cash versus financing your home purchase:
- Cash - $400,000 USD purchase price X 30% CAD to USD foreign exchange rate = $520,0002 CAD in cash needed at closing.
- Financing - $90,0001 USD down payment X 30% CAD to USD foreign exchange rate = $117,0002 CAD in cash needed at closing.
Why finance your new home with RBC Bank?
- No prepayment penalties – Make lump sum payments or pay off your entire mortgage when foreign exchange rates improve
- Use your Canadian credit history – We’ll look at your Canadian credit history and your RBC relationship when considering your application
- Financing in all 50 states – Condo in Boca or townhouse in Tucson? We’re here to help
- No foreign national premiums – Save thousands over the life of your mortgage
- Low monthly payments – Payment is based on a 30 year term3
- Good investment option – U.S. housing in snowbird states is generally more affordable than in Canada4
Already own a home?
Depending on your location, if you purchased your U.S. home between 2009 and 2013, your home value may have increased as much as 12-15%5
By refinancing, you can use the equity in your home to get U.S. cash.
Pay for anything – home improvements, a dream vacation and more.
Why you should consider renting your new U.S. home
Only $1,500 in monthly rental income covers your mortgage3 payment each month (on a $320,000 mortgage). The money is already in U.S. dollar, so there's no exchange cost to you!