So what if I want to get financing on a Florida property?
Have no fear…RBC is here! That’s right, RBC has a local branch here in Southwest Florida and they are the most common mortgage lender for Canadians. Now that’s not to say other lenders do not have financing for foreign nationals, but most Canadians tend to stick with RBC. Now keep in mind if you finance the lenders will charge you more for a mortgage than you might be used to. I guess the lenders are worried you might fly the coup back to Canada. Can you blame them? Most Canadians do not have any type of income, assets, or even a Social Security number here in the U.S of A so there is that potential risk if they cut a check for a couple hundred thousand for a nice waterfront property. Now if you’re not thrilled about the terms for financing in the U.S., you do have another option. You could finance the home in Canada and pay cash for the property in Florida. There is some upside to this option. If the Canadian dollar happens to drop below the U.S. dollar, you would still have your payment in U.S. funds. And this would pose a problem causing you to need more Canadian money to make payment. This would not happen if your loan and payment were in Canadian dollars, so you could reduce some risk. Now the flip side is if the U.S. dollar drops and you are earning Canadian dollars then you stand to make some cash. I would encourage you to speak to an accountant about the best possible scenario for you, whether financing or paying cash.