The purchasing of a home is probably the largest and most expensive financial transaction people will ever undertake. Unless you are lucky enough to be independently wealthy then when we decide to purchase a home, some type of financing is usually involved. The most common type of financing for a home is a bank issued mortgage. There is another type of mortgage available though that few people are aware of. The assumable mortgage. This type of mortgage allows the buyer of a home to take over the mortgage already attached to the property by the seller. This is often an easier method for a lot of buyers and only requires the original mortgage lenders approval.
You can also find more in-depth information on Assumable Mortgages by Clicking Here.
Assumable Mortgage Listings
| All Listings | $100,000 - $200,000 | $200,000 - $300,000 |
| $300,000 - $400,000 | $400,000 - $500,000 | $500,000 - $600,000 |
This 2 Bedroom 2 Bath Condo Maybe Assumed With Qualifying...
- Price:
- $179,900
- City:
- Edmonton
- Beds:
- 2
- Baths:
- 2
- Type:
- Condo / Townhouse
- MLS® #:
- E3286017
- Provider:
- Kevin O'neill Realty Executives Polaris
This 2 Bedroom 2 Bath Condo Maybe Assumed With Qualifying It Features New Laminate Flooring, Window Coverings...
**available** Ownership Of This 1,180 Sq. Ft. Attached...
- Price:
- $194,900
- City:
- Edmonton
- Beds:
- 3
- Baths:
- 1
- Type:
- Single Family
- MLS® #:
- E3279917
- Provider:
- Darlene Reid Rock Point Realty
**available** Ownership Of This 1,180 Sq. Ft. Attached Home Can Be A Reality With A Low Assumable Mortgage!...
On Whyte Avenue,14 Blocks From The University Of Alberta...
- Price:
- $207,999
- City:
- Edmonton
- Beds:
- 2
- Baths:
- 1
- Type:
- Condo / Townhouse
- MLS® #:
- E3280811
- Provider:
- Tim Gartner Realty Executives Synergy
On Whyte Avenue,14 Blocks From The University Of Alberta ,close To Mill Creek Ravine! Buy This Freshly...
Excellent Starter In Grovenor. Big Garage 2 Plus 2...
- Price:
- $259,500
- City:
- Edmonton
- Beds:
- 4
- Baths:
- 2
- Type:
- Single Family
- MLS® #:
- E3286355
- Provider:
- Hugh Moncrieff Royal Lepage Noralta Real Estate
Excellent Starter In Grovenor. Big Garage 2 Plus 2 Bedrooms. 2nd Floor Master Bedroom With Ensuite. Very...
Priced To Sell! One Of A Kind, Top Floor, Corner Unit!...
- Price:
- $259,995
- City:
- Edmonton
- Beds:
- 2
- Baths:
- 2
- Type:
- Condo / Townhouse
- MLS® #:
- E3280261
- Provider:
- Jeet Sran Re/max Accord
Priced To Sell! One Of A Kind, Top Floor, Corner Unit! This Spacious 2 Bed 2 Bath Features A Fantastic...
This 1180 Sq. Ft. Character Home Has Had Lots Of Upgrades...
- Price:
- $280,000
- City:
- Edmonton
- Beds:
- 3
- Baths:
- 1
- Type:
- Single Family
- MLS® #:
- E3269919
- Provider:
- Clarence Boyer Professional Realty Group
This 1180 Sq. Ft. Character Home Has Had Lots Of Upgrades Since It Was Built Including Recent High E...
Charming Two Storey Unit In New Development. Attached...
- Price:
- $304,900
- City:
- Edmonton
- Beds:
- 3
- Baths:
- 3
- Type:
- Condo / Townhouse
- MLS® #:
- E3283648
- Provider:
- Glen Teghtmeyer Re/max Real Estate
Charming Two Storey Unit In New Development. Attached Garage And Low Condo Fees. Five Major Appliances...
This Charming 3 Bedroom, 2.5 Bathroom Home Has A Great...
- Price:
- $310,900
- City:
- Leduc
- Beds:
- 3
- Baths:
- 3
- Type:
- Single Family
- MLS® #:
- E3282348
- Provider:
- Michelle Leduc One Percent Realty
This Charming 3 Bedroom, 2.5 Bathroom Home Has A Great Layout And Is Ready For A Family! The Cozy Living...
Gorgeous And Spacious 2 Bedroom, 2 Bathroom Condo In...
- Price:
- $319,900
- City:
- Edmonton
- Beds:
- 2
- Baths:
- 2
- Type:
- Condo / Townhouse
- MLS® #:
- E3284809
- Provider:
- Troy Stenson Re/max River City
Gorgeous And Spacious 2 Bedroom, 2 Bathroom Condo In Lewis Estates. This 1265 Sq Ft Unit Features A View...
Beautifully Maintained Fully Developed Bi-level Features...
- Price:
- $337,500
- City:
- Edmonton
- Beds:
- 3
- Baths:
- 3
- Type:
- Single Family
- MLS® #:
- E3278725
- Provider:
- Carla Landry Re/max Real Estate
Beautifully Maintained Fully Developed Bi-level Features All The Benefits Of A Fantastic And Comfortable...
*visit The "realtor Website" For More Information On...
- Price:
- $379,000
- City:
- St. Albert
- Beds:
- 6
- Baths:
- 2
- Type:
- Single Family
- MLS® #:
- C3492771
- Provider:
- Scott Bollinger Commonsense Network
*visit The "realtor Website" For More Information On This Listing* Well Maintained 6 Bedroom, 2 Bath...
Large 2 Storey Completely Remodeled Inside. Lovely...
- Price:
- $385,000
- City:
- Edmonton
- Beds:
- 5
- Baths:
- 3
- Type:
- Single Family
- MLS® #:
- E3280474
- Provider:
- George Hyatt Ranger Realty Company Ltd
Large 2 Storey Completely Remodeled Inside. Lovely Kitchen And Bathrooms With Jacuzzi. Main Floor Is...
If mortgage rates have increased since the original mortgage was issue then the benefit of this strategy is to the buyer. The buyer does not have to contend with an increased cost of borrowing due to interest rates that have risen dramatically over the last few years. They are able to take advantage of the original buyers’ low interest rates. The only disadvantage of an assumable mortgage is the possibility that the cost of the home might not be completely covered by the remaining mortgage value, leading the buyer to have to secure additional funding.
An example of the situation is if the buyer finds an home which is being sold for $200,000, but the sellers mortgage only has an assumable value of $100,000 then the buyer will have to make a down payment and acquire personal financing for the remaining $100,000. To put this simply the buyer can only assume a mortgage worth 100,000 and will have to take a second mortgage on the property to cover the other 100,000 at the current interest rate which is undoubtedly higher. It should also be noted that the lender on an assumable mortgage usually reserves to right to alter the terms of the agreement to accommodate the credit risk of the buyer and the current housing market environment.
While this type of mortgage has many advantages to the buyer there is a flip side. The seller has a unique risk involved with the transaction. In many cases an assumable mortgage may still be held as a liability of the seller after the transfer of ownership has taken place. Let’s assume that the house is valued at $300,000 and the assumable amount of the mortgage is $150,000. After 6 months of assuming the mortgage the buyer defaults on the agreement only paying $50,000. The mortgage lender is only able to recover through litigation $30,000 from the buyer. The original holder of the mortgage, the seller, can be held liable for the remaining $70,000! There is a way for the seller to protect themselves however. They need to release their liability in writing at the time of the transaction, making sure that a notarized and registered copy is provided to the buyer, the lender and retained for their own purposes. Another copy, it is recommended be placed with the seller lawyer, should it be necessary to have it brought forth as evidence in a legal proceeding.
There are many variables involved with assumable mortgages. Make sure you speak with a REALTOR® before proceeding.
Contact Us Today. We can help you with all of your future Real Estate needs.
The information provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.The Terms of Use Agreement shall not impose a financial obligation on the Registrant or create any representation agreement between the Registrant and the Participant.
All information provided is deemed reliable but is not guaranteed accurate, and should be independently verified.
Disclaimer: Information herein deemed reliable but not guaranteed by the EREB.
Terms of Use
Listing information last updated on February 6th, 2012 at 1:00am.