hestermere Lake
REAL ESTATE
Assumable Example:
- Jim wants to sell his home for $595,000 and has an assumable $500,000 loan at 4.5% interest. Michael wants to buy Jim’s house. Michael only has to put down $95,000 (plus closing fees) to take over Jim’s house and mortgage. Alberta regulations allow for Michael to take over the mortgage without qualifying in most instances (assuming the seller agrees)
- 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.
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 Chestermere & Southern Alberta, even people with less-than-stellar credit can buy homes - as long as they're 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 to ask a Vostner-Bell realty group member for current assumables.
©2003-2008 Jason Bell, Tess Vostner-Bell & Associates All Rights Reserved
MaxWell Canyon Creek (403) 278-8899 or (403) 689-1199 3205 380 Canyon Meadows Drive SE Calgary, Alberta, Canada T2J 7C3
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 Assissted Financing programs are available from some lenders, so call your Vostner Bell representative for more information.