A high Canadian dollar and sagging U.S. real estate prices are making the dream of owning a sunny vacation home south of the border a lot more realistic for Canadians.

Currently, about 11 per cent of all international home buyers in the U.S. are Canadians, and there are plenty of reasons to believe this number may increase in the future.

A recent RE/MAX report on recreational property says many Canadians are capitalizing on market conditions in major American centres, particularly those known for their warm climates such as Florida, Arizona, Texas, California and Las Vegas.

If you are considering venturing into real estate in the U.S., however, there are some things you should know before you take the leap.

It is advisable to pay for your property in the U.S. with cash because of the requirements of U.S. banks for a non-resident to get a mortgage. For one thing, banks in the U.S. require a down payment of 35 to 40 per cent for non residents, much higher than what they demand for residents. As well, they require that you set up a bank account with enough money to cover mortgage payments, insurance and property taxes for at least six months.

Also, because you are a non-resident and therefore do not have a credit rating, you will have to obtain one from an official credit agency as well as provide the bank with copies of your statements from your bank here in Canada.

There are a couple of advantages to having a mortgage in the U.S. compared to Canada.

South of the border you can get a fixed mortgage rate up to 30 years compared to only 10 years in Canada, Dawson explains. As well, most U.S. mortgages don't have early payment penalties.

The U.S. real estate market is open to Canadians.