Assumable Mortgages

An assumable mortgage allows home buyers to take over("assume") a seller’s mortgage when purchasing a home.  Alberta is the only province in Canada that allows you to assume a mortgage.  Generally, assumable mortgages do not require qualifying, or the approval of the lender.  

How an Assumable Mortgage Works 

A home seller wants to sell their home for $300,000 and has an assumable 270,000 mortgage at 5.5% interest.  A home buyer  wants to buy this house.  The buyer only has to have $30,000 "cash to mortgage" (CTM - the amount the buyer will need to purchase the home), to take over this house and mortgage and become a Calgary home owner! 

A homeowner with an assumable mortgage passes the responsiblity for these loan payments to a buyer instead of paying it off using proceeds from the home sale.  This  benefits homeowners who would otherwise pay large penalties to their financial instution if they try to pay off their mortgage early.  Assumable Mortgages are a great opportunity for Calgary home buyers who have had changing employment, or can't prove income, have low credit scores or no credit, bankruptcies etc, or have an existing mortgage and wish to buy investment real estate to become home owners or investment real estate owners.

Low-down / assumable mortgage opportunities are hard to find, but are still available.   With low-down / assumable mortgages in Alberta, everyone can become a home owner, as long as they're able to pay the down payment (CTM).  Assumable mortgages allow buyers who would otherwise not be able to own a home build equity and enjoy all the other benefits of homeownership.