Buying an RTM Home from Canada as an American

Buying a Ready-to-Move home (RTM) from Canada if the potential home buyer lives in America might seem out of place, but in fact it is super beneficial especially in today’s economy.

Over the last few years, North America has seen a shift in dollars. Around 2008, the Canadian dollar (CAD) and the US dollar (USD) was 1 to 1 meaning for every 1 USD was 1 CAD . It was great for Canadians shopping in the States, but not so great for Americans.

Starting in 2015 , the Canadian dollar got weaker and weaker against the US dollar. In 2021, the average exchange rate was, for every 1 US dollar, 1.25 Canadian . This means, it is no longer great for Canadians, but fantastic for Americans.

As an easy example, let’s say you, as an American, go to Canada as a tourist for a day trip or weekend trip, etc. You pay for everything with your credit card. If you were looking at all the receipts, it would equal (pretend numbers) $400 dollars. However, since that total is Canadian dollars, when you look at your American credit statement, it will say $320 in USD.

Buying a home is no different.

Let’s look at a home example. A home in Canada could be worth $300,000 CAD and this would equal $240,000 USD at the $1.25 exchange rate.

Further, there have been moments over the years where the exchange rate has risen to almost $1.40. If this is the exchange rate when you purchase your home, that same $300,000 CAD home would then equal $214,285.71 USD.

Of course, there could be a moment in the future where the exchange rate gets closer to 1:1, but our clients are also able to lock in the exchange rate as well if they feel like the rate is going against their favor moving forward or if they believe the exchange rate is too good of a deal to pass!

In addition to locking in the exchange rate, the Pioneer Homes RTM home builder team helps our clients remain stress-free on this issue by price locking.

Once the final contract is signed, we lock in the final price in Canadian dollars. However, clients are able to pay the bill based on the current exchange rates at time of invoicing if they don’t lock in an exchange rate. Payments are set within the contract based on progress points throughout the project.

But, the savings on the price of a home isn’t the only thing Americans can take advantage of! Though you might have to pay Canadian taxes during your vacation, when you buy a new RTM home with Pioneer Homes, Americans are exempt from paying our taxes (PST and GST).

An extra added benefit!

In terms of legality, there is nothing extra Americans have to worry about!

**Please note, each American state has its own tax rules. Please schedule a free call with the Pioneer Homes team to chat about your options.**

It might seem like there are a lot of moving parts when it comes to getting an RTM house from Canada, but the Pioneer Homes RTM home building team makes sure you don’t have any of the headache.

While your RTM house is in Canada, Pioneer Homes builds all homes up to the current building code based on where it is going. All plans and houses are reviewed, inspected and approved by a certified third party agency to ensure compliance with the required building codes.

Future homeowners also don’t have to worry about the moving process as the Pioneer Homes team works with our trusted transport partners. We will also handle all the border and customs paperwork to make sure your RTM house is delivered on time.

Once the RTM house is established at the final destination, if a client ever needs to use the warranty and make repairs on the home, we work with trade organizations in the States to help resolve any concerns and to renew your home! We don’t forget about your home when it crosses the border – we have your back!

If you are ready to start your RTM home process , schedule a free call with us !

We service parts of North Dakota and Minnesota in the States! Or feel free to send us an email !

*Legal Disclosure: We are not financial advisors and the information presented in this article is a combination of data found online. If you have further investment questions and or concerns, please consult a licensed professional.