Many Canadians are heading south of the border to invest in real estate due to the inflated Canadian housing market and the significantly lower priced US real estate with major upside. Currently Canadians account for 15% of all foreign sales in the US with a total of $13.8 billion dollars spent over the past 12 months. 73% of these purchases were made in Florida, Arizona, and California.
If we look back a few years, US real estate was valued 3 times higher in many of the popular states and the Canadian dollar was worth significantly less than it is today making an investment in US real estate very expensive. Although the dollar has pulled back off the strongest levels and real estate has started to rebound there is still tremendous upside for Canadian home buyers south of the border!
Over 80% of Canadians purchase US real estate with cash but did you know acquiring a mortgage in the US is not that difficult anymore. RBC Royal Bank is offering lending to Canadians with as little as 20% down payment at very competitive interest rates. Your other option is to refinance your Canadian real estate and use the equity from your home in Canada. If you are lucky enough to have significant equity in your home, refinancing can make sense to allow you to buy in the US with cash. If you don’t have the equity available, acquiring a mortgage with RBC is a great option.
If you are interested in buying US real estate, contact our team to discuss both options to determine the best route for you. Our mortgage and real estate team is experienced with purchasing US real estate and can walk you through the process!