Canadian Buyers should plan ahead when purchasing homes in Arizona

Following is an article written by Snow An, Globex Foreign Exchange.  She offers some great advice for Canadians who are purchasing a home anywhere in the United States.

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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.

 

In addition to these fluctuations, most financial institutions charge a premium of 2-4% or more on the exchange rate, which can easily cost you thousands more than if you were exchanging your funds using a wholesale currency dealer.  Your dedicated currency broker will work closely with you to save you money on these premiums and actively contact you via e-mail or phone to keep you updated on market trends and rate fluctuations that are moving in your favor.

 

As far as security, Globex Foreign Exchange is interested in protecting your financial interest.  All our clients’ funds are insured up to $2 million and as we are not in the business of currency speculations, company and client funds are kept insulated from each other at all times.  Our clients’ funds are securely and efficiently transferred using the SWIFT network—the same secure and reliable system used by the major banks.

 

Outstanding customer service is one of our core values and we fully appreciate our relationships with our clients, as our business grows by referrals.  Your currency broker will work with you to educate you about the market so that you can make your own knowledgeable decisions and alongside your real estate agent to ensure a smooth transaction from beginning to end.

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Globex Foreign Exchange is a Canadian company that is one of the world’s leading foreign exchange brokers with 23 locations worldwide.  We have been in business for over ten years and are headquartered in Edmonton, Alberta and deal with most major currencies.  Please visit www.globexfx.com for more information about our company and how our services can benefit you.

 

For more information and answers to any questions—big or small—you may have, you can contact our dedicated currency trader at Globex Foreign Exchange directly at:

 

Snow An

100, 10336 Jasper Avenue

Edmonton, AB T5J 1Y7

P. 877-423-2217 Toll Free

P. 780-423-2217 Local

san@globexfx.com

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