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Whether you use it in the U.S. or Canada, pulling cash from the equity in your U.S. home can increase your cash flow and help you avoid some foreign exchange pitfalls.

If you’ve owned a 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 located, it may have increased significantly! If that’s the case, you have the opportunity to leverage the equity you’ve built up and take cash out of your home — cash that you can use to fund your cross-border lifestyle, or finance other goals you have for yourself and your family.

3 Ways to Use Funds from a HELOC or Refinance

Tapping into the equity you’ve built in your U.S. home can give you new financial flexibility. With either a lump sum of cash (through a refinance) or easy access to U.S. funds whenever you need them (through a HELOC), you have an opportunity to cover off important financial obligations at a relatively low cost.

Here are three ways Canadians with U.S. property tend to use the equity from their homes:

1. Move Money Back to Canada

With the U.S. dollar strong compared to the Canadian Loonie, the money you pull out of your U.S. home may go a long way back home. Whether you have a child preparing for College or University, renovations to take care of in your Canadian home, or lingering debt you’d like to erase once and for all, U.S. funds can help you cover off your Canadian obligations.

2. Manage U.S. Expenses

As a Canadian, funding your cross-border lifestyle has likely come from bringing money from Canada. The problem with that is that you have been hit with foreign exchange costs every time you’ve brought money down.

By accessing U.S. cash via your U.S. property, 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.

RBC Bank is RBC Bank (Georgia), National Association (“RBC Bank”), a wholly owned U.S. banking subsidiary of Royal Bank of Canada, and is a member of the U.S. Federal Deposit Insurance Corporation (“FDIC”). U.S. deposit accounts are insured by the FDIC up to the maximum amount permissible by law. U.S. banking products and services are offered and provided by RBC Bank. Canadian banking products and services are offered and provided by Royal Bank of Canada. U.S. deposit accounts are not insured by the Canada Deposit Insurance Corporation (“CDIC”). RBC Bank, Equal Housing Lender.equal housing lender