Friday, March 07, 2008

Last of the Wild and Free Alberta Assumables ?

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.

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