Published May 5, 2025 • 5 Min Read
If you’ve owned your home in the U.S. for a few years, your property may have increased in value. In fact, depending on how long you’ve been there and where your property is, that increase may be significant. Add to this the strength of the U.S. dollar, you could be sitting on (or living in) some meaningful equity.
With these economic conditions working in your favour, you might be wondering how to refinance your U.S. house. There are two main ways to leverage the equity you’ve built up in your home — either by refinancing your U.S. home or taking out a Home Equity Line of Credit (HELOC). Both options allow you to pull U.S. funds out of your home and use them for a range of purposes.
How a Refinance works
Refinancing your U.S. home can help you access U.S. funds. The process involves using your home’s equity to take out a new, larger mortgage than your current one. You get the extra amount in cash, which you can use however you like.
How a HELOC works
A HELOC also lets you leverage the equity you’ve built in your home, but you can access it over time instead of as one lump sum. You’re given a set credit limit (at RBC Bank, your limit is up to 80% of the value of your home) and can withdraw funds as you want or need to use them. You only pay interest on what you borrow and as you repay your HELOC, those funds become available to you again.
4 ways to use funds from a U.S. HELOC
Tapping into the equity you’ve built in your U.S. home with a Home Equity Line of Credit can give you financial flexibility. Since HELOCs generally come with some of the lowest borrowing rates available compared to credit cards, personal loans or unsecured lines of credit, they allow you to cover financial obligations at a relatively low cost. And, with interest rates dropping faster than mortgage rates in the U.S., a HELOC (which typically comes with a variable rate) is a particularly attractive option for homeowners of U.S. property with built-up equity.
Here are four ways Canadians with U.S. property can use the equity from their homes:
1. Move money back to Canada
While the strength of the U.S. dollar compared to the Canadian Loonie may be a thorn in the sides of many snowbirds and Canadian travellers, it presents a valuable opportunity for U.S. homeowners with equity in their properties.
Consider this: If you tap into this equity, the money you pull from your U.S. home might go a long way back home. What can you do with that money? The list is long – and personal. You might help a child with university tuition, tackle those long-postponed home renovations, or pay down debt at higher interest rates. Others may see it as an opportunity to invest in the Canadian market, purchase a recreational property, or even top up their RRSP or TFSA. By moving funds back to Canada strategically, you’re making both your equity – and the exchange rate – work for you.
2. Manage U.S. expenses
As a Canadian, funding your cross-border lifestyle has likely come from exchanging money from Canada. The problem with that is that you have been hit with foreign exchange costs every time you’ve brought money down south.
By accessing U.S. cash via your U.S. property with a HELOC, you can bypass foreign exchange fees in order to cover day-to-day expenses such as homeowner fees, groceries, fuel expenses, home maintenance and more. Plus, you don’t have to worry about timing your exchange for when rates are better.
3. Preserve your Canadian credit
Renovate your U.S. home, buy a boat, pay for schooling or fulfill other goals for your life south of the border with the U.S. cash you can pull out of your home. By leaving your Canadian credit alone, you can avoid the cost of foreign exchange, simplify repayments and preserve it for any Canadian expenses that require attention. This is what you’ve worked for — it’s time to enjoy it.
4. Diversify your wealth plan
Pulling equity from your U.S. home can also give you capital to rebalance your overall financial picture. Are you heavily invested in U.S. real estate or U.S. dollars? If so, you could use the funds from your home to invest in Canadian assets, helping you spread out risk.
It’s also a great way to free up liquidity while retaining ownership of your U.S. property. In other words, you don’t need to sell your U.S. home to access U.S. funds, allowing you to maintain this valuable asset.
If you own property in the U.S., you may be sitting on more value than you realize. With home prices rising in the U.S. alongside a strong U.S. dollar, tapping into your home equity – through a refinance or a HELOC – can be a smart, strategic move. Whether you’re looking to support your life back in Canada, fund expenses in the U.S., preserve your Canadian credit or rebalance your overall financial picture, this equity can give you the flexibility to act on what matters most to you.
As always, it’s a good idea to explore your options with a cross-border mortgage advisor who understands the unique needs of Canadians with U.S. property. With the right guidance, your home equity can become a powerful tool to support your goals on both sides of the border.
Looking to free up U.S. cash?
Leveraging your U.S. home equity can provide you access to U.S. dollars without having to sell your U.S. property
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
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