The Canadian dollar or the Loonie as it is more commonly known, has certainly taken a big hit when compared to the US dollar. Many Canadians are hesitant and rightfully so about bring funds south of the border to invest in the ever improving US real estate market. On a daily basis the team at Express Capital Mortgage Inc. talk with Canadian clients who are pulling back the reigns in the US because of the current lack of purchasing power they have with the Canadian Loonie. The bad news is nobody knows when that may change, but the good news is there are most certainly great options for those clients.
One of the characteristics we often find when speaking with our clients is most of them have purchased US property in the past and most likely did so with cash. They now own free and clear properties with 100% equity. 5 years ago if a Canadian wanted to take that equity and turn it into cash to either take home or invest in another property they had two options…
1) sell sell sell, cash the property in and use the money for whatever they wanted to.
2) Hard money financing…financing at 16-20% with a 6 month to 5 year terms. (I said it was an option… not a good option, just an option)
The issue with option #1 is this usually defeats the purpose of purchasing an income property. If you do not have the property you cannot make an income. The problem with option number 2…well that is pretty evident…high rates and higher payments. Express Capital Mortgage Inc. is here to offer option #3.
US bank financing on investment properties is now available. Keep your Canadian money in Canada and use the US properties you currently own to your advantage. Leverage the equity out and go looking for a property which have values which continue to climb and produce an income at the same time. Terms for these products are similar to what Canadians are use to seeing and the rates terms are outstanding.
Now is the time to take advantage of an improving market, save yourself some money, and improve your US real estate portfolio all at the same time. Just ask us how.