Within the last few years it has become quite easy for Canadians to get a mortgage from a US bank to purchase a vacation home in Arizona. Several years ago this was unheard of. Now Canadians with good credit can get a US mortgage with 20-30% down. Interest rates are aproximately 6-7% and can be locked in for up to 30 years. Most of our clients, however, choose to finance their Phoenix homes through Canada. Canadian banks will not give you a regular mortgage for a US home, because they are unable to foreclose on that home if you fail to pay the mortgage. They will however, lend you money as a personal line of credit or through a home equity line of credit (HELOC) to purchase a vacation home. The benefits of financing in Canada and then paying cash for the home in Phoenix is financial security. You have locked in the exchange rate and your monthly payment. As the currency fluctuates (which we have seen in the extreme during the past month) your monthly payment does not change. If you took a US mortgage and was paying back your US mortgage with Canadian dollars, the monthly payment would effectively go up every month that the Canadian dollar went down. We can refer you to mortgage professionals in both Calgary and Edmonton. Please feel free to contact us for referrals.
Marc Brodeur
Realtor
www.ThePhoenixExperts.com
Marc@ThePhoenixExperts.com
1-800-300-0263
