RBC Bank and Canadian Travelers Share Advice for Optimizing Snowbird Season

RALEIGH, N.C. (November 18, 2015) – RBC Bank, the leading provider of banking solutions for Canadians visiting or staying longer-term in the United States, recently polled its Canadian clients to find out how they are preparing for snowbird season in the U.S., what activities they will enjoy and how they are preparing their finances.

According to the Canadian Farmers’ Almanac, most Canadian provinces will experience unseasonably cold conditions this winter. When temperatures drop in Canada, tourism flourishes in popular hotspots like Florida, Arizona and California. In fact, 3.8 million Canadians traveled to Florida in 2014, a 2.4 percent increase over 2013.

Here’s what snowbirds are saying:

· Hit the Greens: More than 40 percent of survey respondents said that one of their favorite activities in the U.S. was golfing. According to Travelandleisure.com, 45 out of the top 100 golf courses in the country are located in Florida, California and Arizona, so there are plenty of options for snowbirds looking to take up a new hobby this winter or hone their ability to ace the ball.

· Shop ‘Till You Drop: Shopping ranked as the most popular activity, with 67 percent of respondents saying they would hit the shops as soon as they cross the border. Many snowbirds may not realize that when they use their Canadian credit card in the U.S., they will pay 3-5 percent in fees on every purchase. Getting a U.S.-based credit card can help travelers avoid foreign exchange and foreign transaction fees while shopping in the U.S. Learn more.

· Find New Adventures: Florida and California remain the most popular destinations for Canadian snowbirds, but 15 percent of respondents are headed to Arizona this winter. Texas is another popular new destination, with a thriving community of “Winter Texans” who welcome snowbirds to the Rio Grande Valley area each year. Read the Winter Texan Times to learn about upcoming events and activities in the area, such as bird watching.

· Find a New Home: There was an even split between clients who rented and owned their U.S. vacation home. With the Canadian dollar (CAD) at its weakest point in 11 years, it is now extremely expensive to exchange currency and buy a home with all-cash. In fact, more than one-third of survey respondents cited the currency exchange issue as their primary reason for not purchasing a U.S. home, opting instead to continue renting. Many Canadians are unaware that taking out a U.S. mortgage can be a cost-effective alternative to buying with all-cash. By applying for an adjustable rate mortgage with a fixed term, these buyers can avoid the cost of currency exchange in a large amount now and potentially pay off their mortgage if the Canadian dollar improves.

The rapidly evolving U.S. housing market has made RBC Bank’s cross-border mortgage options more relevant than ever before for Canadians traveling across the border this year.

“Our U.S. mortgages are specifically tailored to meet the needs of Canadians in the U.S.,” said Alain Forget, director of business development at RBC Bank. “It may come as a surprise, but now is actually a great time to buy in the U.S. because houses are still relatively less expensive than they are in Canada, and buyers can lock in a great mortgage rate while diversifying their investment portfolio – something they can’t do with a rental. Plus, financing can help lessen the impact of today’s foreign exchange on Canadian buyers. Concerns over the Canadian-U.S. currency exchange rate and potential costs may cause buyers to consider putting off a home purchase. With the CAD at its weakest point in 11 years, financing a U.S. property is a cost effective alternative for Canadian clients, helping to lessen the one-time impact of foreign exchange if they pay cash. A major benefit to financing real estate in the U.S. with RBC Bank is that there are no pre-payment penalties, so Canadians can repay their mortgage in full if the CAD improves.”

RBC Bank helps Canadians spend time in the U.S. by offering tailored mortgage solutions and making it easier for clients to access, manage and transfer funds when they make the trip down south. To learn more about the U.S. mortgage process, visit RBC Bank’s Advice Center.

About RBC Bank
RBC Bank (Georgia), N.A., a wholly-owned subsidiary of the Royal Bank of Canada, provides U.S. banking solutions to RBC consumer clients with a cross-border lifestyle, including snowbirds, expats, student, businesses and more. RBC Bank pioneered cross border banking and has been serving clients who visit, shop, study or relocate in the U.S. for more than ten years. Today, the Bank provides everyday banking, business banking and real estate lending solutions in all 50 states. For more information, visit www.rbcbank.com.

Equal Housing Lender. Member FDIC.

About RBC Royal Bank

Royal Bank of Canada is Canada’s largest bank, and one of the largest banks in the world, based on market capitalization. We are one of North America’s leading diversified financial services companies, and provide personal and commercial banking, wealth management, insurance, investor services and capital markets products and services on a global basis. We employ approximately 79,000 full- and part-time employees who serve more than 16 million personal, business, public sector and institutional clients through offices in Canada, the U.S. and 38 other countries. For more information, please visit rbc.com.

RBC supports a broad range of community initiatives through donations, sponsorships and employee volunteer activities. In 2014, we contributed more than $111 million to causes worldwide, including donations and community investments of more than $76 million and $35 million in sponsorships.

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