RBC Bank, the market leader in cross-border banking and real estate financing for Canadian Snowbirds visiting or staying longer-term in the United States, is welcoming Canadians back to Phoenix and other popular U.S. destinations for another season of golf, warm weather and relaxation.
However, because the Canadian dollar (CAD) experienced a 16 percent decline against the U.S. dollar over the past year, some of these travelers are looking for ways to reduce costs. According to the 2016 RBC U.S. Travel Poll, two-in-10 travelers (23 percent) say they plan to cut back on shopping, dining or entertainment when in the U.S.
Despite currency concerns, there are opportunities for Canadians returning to the Phoenix area, such as:
• Homes in the U.S. are less expensive than comparable homes in Canada. Canadians can get more square footage for less money in the U.S. The median cost of a home in Phoenix is approximately $195,900 U.S. dollars, compared to $605,250 U.S. dollars1 in Toronto. Additionally, renting out the property during the off-season can cover mortgage payments, U.S. taxes and more. Vacancy rates are also at a 20-year low, according to Moody’s Analytics.
• Refinancing in the U.S. can be lucrative. Consider refinancing if you bought a home in the U.S. between 2009 and 2013, when the CAD was at or around parity with the U.S. dollar. Your home has likely appreciated by as much as 12 – 15 percent per year. Homeowners are in a unique and favorable position to take advantage of appreciation on their home and the strong U.S. dollar.
“The financial landscape is constantly evolving and we want to help our Canadian customers maximize their U.S. investments,” said Alain Forget, director of business development at RBC bank. “We are excited to welcome Canadian snowbirds back to the U.S. and help support their cross-border lifestyle.”
RBC Bank enables Canadians to easily access and manage their money on both sides of the border.
To learn more about RBC Bank’s cross-border services, visit www.RBCBank.com.