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Click
here for an assumable Canadian mortgage
Author:
Mariam Durrani
Web Site: http://www.1st-choice-loans.com
Assumable Canadian mortgage: a plus for the buyer
An
assumable Canadian mortgage is a loan that lets the homebuyer take over
the seller’s Canadian mortgage when purchasing the property. This
means, with assumable Canadian mortgages, the buyer can take over the
same interest rate of the old mortgage but tailor the terms a
bit, and the seller may still be liable for the loan.
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If your a buyer,
consider an assumable Canadian mortgage if the seller’s old mortgage
has a lower interest rate than the current rate. The seller
should be cautious in handing over their loan to the buyer
because depending on the state and terms of the mortgage the
seller may still be liable for the loan. If for some reason the
property is lost the mortgage holder will come after both the
seller and the buyer until the loan is paid off.
From the
buyer’s perspective this can be a great deal, especially if
they have poor credit and may not get such a good deal in the
case of applying for a new loan. However, remember that you will
still need to 'qualify' for an assumption Canadian mortgage. So if the
application won’t be a problem make sure to consider the
assumption fee and terms of the existing loan before making a
decision. Thereafter just do the calculations to see if assuming
a mortgage would be financially better than getting a new one.
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