U.S. financing from The Canadian banks offset to buy

U.S. financing from The Canadian banks offset to buy

Investors in Canadian Real Estate sector are dissuaded from buying the American properties because of its exchange rate, but this needless headache can be avoided by getting U.S. financing from the Canadian banks.

“A $532,000CAD home is equal to an amount of $400,000 (US dollar), so the US mortgage makes a sense to mitigate a huge impact of the weaker Canadian dollar,” said Alain Forget, RBC’s director of business development in the United States. “At $0.76, lots of Canadians are not interested to buy any property, as they’ll still have an option to change their money at an exchange rate of 33%. The Canadians don’t know that they can get The U.S. financing from a bank in Canada like RBC, and for an investment property that they rent out the whole year.”
Canadians are investing in the south of the border, by spending an amount of $10.5 billion last year.

Alain Forget said that there is a huge opportunity in all of these markets to get a three or four bedroom homes, or even you can get a nice townhome with 3,000 square feet in the gated communities with a resort lifestyles and three bedrooms.”

$1 million is the worth of a home in Canada which means $400,000 of Florida, but selecting the right kind of home offsets the buying price, especially when there is the peak season.

“In Central Florida, the west coast of Florida and Southwest Florida, for $250,000 – $300,000, is the amount that Canadian investors may rent out their homes for around $3,000 to $4,000 a month,” said Forget. “A lots of the Canadians are using properties for themselves only for few months and then rent them out during the months of January – April, and generate enough cash flow as like as U.S. cash flow to cover their insurance, taxes, HOAs and property taxes. This even covers the interest and financing principal.”

$450,000 is the amount of a five-bedroom house in Orlando and this fetches monthly rental income.

RBC has dropped down its payment requirement on investment properties from 40% to 25%, it is a sign regarding rental properties in Florida as high-yield and low-risk investments.