Is received a call today from one of my preferred lenders.  He wanted to let me know that it has just become more difficult for Canadians or other foreign nationals to finance a second home in the US. 

This will undoubtedly impact the number of Canadians interested in purchasing a vacation or retirement home in Arizona.  There is still financing available, but it is more limited and the interest rate is higher. It's more important than ever for Canadians to contact a Real Estate professional and/or Lending professional in the US prior to making plans to purchase.

Many Canadians are still paying cash for their home purchases so this information from a currency broker in Canada could not have come at a better time:

Whether you are buying a $200,000 USD vacation home or a $16,000,000 USD estate, as a Canadian buyer purchasing a home in the U.S. you will be affected by the volatility of the foreign exchange rate.  At some point, you will need to convert your home currency into U.S. funds to purchase the U.S. property.  In order to maximize your purchasing power, it's important to plan ahead and buy your USD funds at the "right time" instead of the last minute.

To get the best rates when it comes to obtaining a mortgage, you will most likely use a mortgage broker.  Similarly, a currency broker will work with you to ensure that you are getting the very best rate for your currency exchange and help reduce your exposure to the volatility of the exchange market.  A foreign exchange company, such as Globex Foreign Exchange, will not only help you save money, they are also able to securely transfer your funds to a specified beneficiary and/or Escrow company and provide you with extremely personalized service.

So, how can foreign exchange risk really affect you?  Consider a property in Chandler that is $300,000.00 USD with a 30-day close.  While the price of this property will remain the same in US dollars for the 30-day period, the $300,000.00 USD equivalent in Canadian dollars will be increasing or decreasing along with the changes in the exchange rate.  If you had planned ahead of time and purchased the $300,000.00 USD at the beginning of June 2008 at a rate of 1.0012, it would have cost you $300,360.00 CAD.  If you had waited two weeks later to purchase the same exact amount of US funds at a rate of 1.0225, it would have cost you $306,750.00 CAD.  In this case, the cost of not planning ahead of time is $6,390.00 CAD-a substantial difference.  Since most currencies can fluctuate close to 1% a day, the currency market is an important aspect that Canadian buyers should consider to protect themselves not only from currency risk, but to potentially save a significant amount of money.

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Visit www.AmySellsAZ.com and www.PhoenixRealEstateBlog.com for timely Chandler, Arizona real estate information Amy Jones specializes in residential, vacation homes & cabins, as well as retirement communities in the communities of Ahwatukee, Chandler, Fountain Hills, Gilbert, Maricopa, Mesa, Paradise Valley, Queen Creek, Scottsdale, Sun Lakes, Tempe and the White Mountains communities of Pinetop/Lakes & Show Low.