The Canadian Dollar / US Dollar Exchange rate has taken a beating lately (from the Canadian perspective). At this moment in time, the Loonie is worth 0.9421 U.S. dollars.
This is off from a high of about $1.08 in November of 2007.
Here is a 3 month chart:
While the drop around the beginning of August looks precipitous, let’s keep it in perspective with historical exchange rates:
Even at $0.94, the Canadian dollar is still strong against the greenback (or the US dollar is weak, depending on your perspective).
Consider locking in exchange rates
None-the-less, when one is looking at the tens to hundreds of thousands of dollars a real estate transaction entails, a few cents in the exchange rate either way can have a pretty significant impact. Canadians contemplating buying US property would be well advised to keep an eye on exchange rates.
One thing our northernly neighbors may want to consider is “locking in” the current exchange rate. Globex Foreign Exchange, based in Edmonton, Alberta, offers “forward contracts” that allow you to do just that. They also offer better exchange rates than banks due to lower markups. For information, give Snow An at Globex a call. Her contact info is here (at the bottom of the article).