In Alberta we've been blessed for a longtime time with being able to assume properties without qualifying for the mortgage.

For the past two years I've seen banks gradually tighten up their lending policies and require buyers to qualify for some assumable mortgages. In essence where we take over the existing mortgage, but still need to prove our repayment ability and that our credit is in good shape.

Last June TD announced that they would cease allowing their mortgages to be assumed, and they have. A few other lenders followed suit; Rezmor and Scotia bank for example.

February 26th 2008, RBC joined up stating that they too would require full qualifying.

I have successfully used Agreement Of Sales in Alberta and Ontario when the market is favorable. Of course, there are many unique strategies to use as well as, rent-to-own and agreement of sale to name a couple.

If you currently have deals tied up with RBC that are assumable, I believe that they will still honor them if they came in with conditions removed before 2/28.
 
This post has been included in Alberta Information Edmonton Region, AB Information

4 Comments on Last of the Wild and Free Alberta Assumables ?

MAR
12
2008
 What valuable info for your area! That is certainly an interesting and creative way to get a buyer into a home. I have not had any experience with assumable loans, I think they went away in our area a long time ago. Nice post.
5:07pm • #1
MAR
14
2008
867,338 Points 68 Featured Posts Outside Blog

I do a lot of owner financing, mortgage assumptions and lease options and I think this is a big mistake by the banks! The banks need to realize they have a borrower in the home that already can't pay, so you are losing interest every month if it starts to go to foreclosure.

But, if you have someone assume the loan even if they start to get in trouble in a year, the bank has made a years worth of interest that they wouldn't have before. That is if they have to foreclose, the new buyer may just do the same thing and have someone assume the loan and in 30 years you have gotten all your money and the interest also.

The banks are not thinking outside the box, instead they are foreclosing on properties and taking .60 on the dollar!
12:09am • #2
MAR
16
2008
165,233 Points Outside Blog
Todd- you couldn't be more correct. It is such a great way for young people or financially strapped people to get into the market. I think banks will have to reconsider this move as our affordability gets tighter and tighter.
8:06pm • #3
165,233 Points Outside Blog
Holly - Thanks for the comment!
8:18pm • #4

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Todd & Danielle Millar

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