EST CALGARY
HOMES
Assumable Example:
- Joe wants to sell his home for $495,000 and has an assumable $400,000 loan at 4.7% interest. Mark wants to buy Joe’s house. Mark has to put down $95,000 (plus closing fees) to take over Joe’s house and mortgage.
- This is a wonderful opportunity for Alberta residents who can't prove income, have low credit scores, bankruptcies, no credit etc. to become a homeowner.
Low-down/assumable mortgages are very rare nowadays, but they are out there. 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.
- Pro: Reduces monthly payments and saves money on closing costs.
With low-down / assumable mortgages in Calgary & Southern Alberta, even people with less-than-stellar credit can buy homes - as long as they're willing & able to pay the downpayment or CTM (cash to mortgage) asked for. Assumable mortgages can help bruised-credit borrowers reap the benefits of homeownership just like their more creditworthy cousins.
Find low-down payment/assumable properties by clicking here or call (403) 689-1199 or 830-5800 to ask a Vostner-Bell realty team member for current assumables.
W
Assumable Mortgages
Assumable Mortgage: A home buyer's ability to take over a seller’s mortgage when purchasing a home. Alberta is the only province in Canada that allows you to assume a mortgage without qualifying in many circumstances (in other provinces, assumable mortgages require the lender’s approval).
2008 UPDATE: Increasing mortgage fraud has resulted in most banks now requiring that home buyers must qualify to assume an exsisting mortgage. Although some properties may still state "No Qualifying," this is on condition of the bank/lender confirming the assumability of the property once the offer is made. There are no guarantees. Seller Assissted Financing programs are available from some lenders, so call your Vostner Bell representative for more information.
West Calgary Homes Calgary MLS listings Calgary condos for sale Calgary homes for sale about us Calgary Home Buyers Guide Calgary Mortgage Tips contact us mlsLink Calgary Assumables Calgary Home Sellers Guide
©2003-2008 Jason Bell, Tess Vostner-Bell & Associates All Rights Reserved
The Vostner-Bell Real Estate Group with MaxWell Realty
MaxWell Canyon Creek (403) 278-8899 or (403) 689-1199
3205 380 Canyon Meadows Drive SE Calgary, Alberta, Canada T2J 7C3
