OUTH CALGARY

  REAL ESTATE

Assumable Example:

• Joe wants to sell his home for $495,000 and has an assumable $350,000 loan at 5.5% interest. Mark wants to buy Joe’s house. Mark has to put down $145,000 (plus closing fees) to take over Joe’s house and mortgage.
  

Low-down/assumable mortgages are becoming very rare nowadays. A homeowner with an assumable loan can "hand off" the loan to a buyer instead of paying it off using proceeds from the home sale. This is of benefit to some homeowners who may be facing hefty penalties or closing costs if they try to pay off their mortgage early. If rates are low and you can get your choice of property by assuming the existing mortgage, by all means do so.

Find low-down payment/assumable properties by clicking here or call (403) 689-1199 to ask a Vostner-Bell realty team member for current assumables.

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Assumable Mortgages

Assumable Mortgage: A loan that allows a home buyer to take over a seller’s mortgage when purchasing a home.

2008 UPDATE: There have been some BIG CHANGES in recent months to Alberta's assumable mortgages. Most banks have closed the door on being able to assume a mortgage without qualifying. Seller Assisted Financing programs are available from some lenders as well as Rent-To-Own's, so call your Vostner Bell representative for more information.