{"id":94336,"date":"2025-05-30T11:52:21","date_gmt":"2025-05-30T15:52:21","guid":{"rendered":"https:\/\/www.rbcroyalbank.com\/en-ca\/?post_type=rbc_my_money_matter&p=94336"},"modified":"2025-10-31T08:45:44","modified_gmt":"2025-10-31T12:45:44","slug":"cash-out-refinancing-equity-options-for-your-u-s-home","status":"publish","type":"rbc_my_money_matter","link":"https:\/\/www.rbcroyalbank.com\/en-ca\/my-money-matters\/goals-aspirations\/travel-and-cross-border\/living-in-the-us\/cash-out-refinancing-equity-options-for-your-u-s-home\/","title":{"rendered":"Cash-Out Refinancing: Equity Options for Your U.S. Home"},"content":{"rendered":"\n
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For Canadians who own property in the U.S., refinancing can be a smart way to put your home equity to work. Whether you’re looking to lower your mortgage payments, lock in a better rate or access U.S. funds, a cash-out refinance can help you make the most of current market conditions \u2014 especially with the U.S. dollar holding strong against the Canadian Loonie. The USD may stretch your purchasing power, both in Canada and the U.S., and create new financial flexibility for you.<\/p>\n\n\n\n

Why refinance your mortgage?<\/h2>\n\n\n\n

There are several potential advantages that come with refinancing your U.S. home<\/a>.<\/p>\n\n\n\n

1. You\u2019ll get a lump sum of U.S. cash<\/h3>\n\n\n\n

A cash-out refinance lets you tap into your home\u2019s equity and receive a lump sum in U.S. dollars. This may be a strategic way to access funds at a very<\/em> favourable exchange rate. That money can go a long way when brought back to Canada. You can use it to pay down debt, invest or cover large expenses. Or, you can keep the cash in the U.S. and fund your cross-border lifestyle without having to convert Canadian dollars at a less-than-ideal rate.<\/p>\n\n\n\n

2. You benefit from the increased value of your home<\/h3>\n\n\n\n

If you bought your home several years ago, it has likely increased in value. Refinancing allows you to take advantage of that appreciation today. Even if property values in your area haven\u2019t risen considerably, currency shifts may have worked in your favour. For example, if you purchased your home when the U.S. and Canadian dollars were closer to par, your home may have increased in value purely as a result of the exchange rate.<\/p>\n\n\n\n

3. You can reset your mortgage rate or term<\/h3>\n\n\n\n

If you originally locked in your U.S. mortgage when rates were higher, refinancing today could mean securing a lower rate \u2014 helping you pay less interest over the life of your mortgage and\/or reduce your monthly payment.  Even if rates haven\u2019t dropped, refinancing gives you the opportunity to extend your term, which in turn lowers your payment, freeing up cash flow.<\/p>\n\n\n\n

4. You can simplify your finances<\/h3>\n\n\n\n

Refinancing gives you an opportunity to reassess how your U.S. property fits into your overall financial plan. For example, a cash-out refinance might help you cover large expenses \u2013 like tuition, travel or healthcare \u2014 without tapping into Canadian funds. It\u2019s also a chance to think about longer-term strategies like estate planning or debt consolidation and how your U.S. home can help you meet certain goals.<\/p>\n\n\n\n

Two types of refinancing<\/h2>\n\n\n\n

Refinancing simply means replacing your existing mortgage with a new one. There are two main types of refinancing:<\/p>\n\n\n\n