Another Plus For Alberta

The fact that there are assumable houses in Edmonton, Alberta only adds to the already too-good-to-be-true stature of this Canadian province. While most elsewhere you have to qualify at the bank to get a mortgage when you buy a house, here you are often able to take over the existing mortgage. Don't just assume that you can assume the balance but if the person wanting to sell is agreeable, the person who wants to buy can sidestep the bank and assume the mortgage payments.

You have to consider though that the down payment needed on the real estate property could be substantial if the property owner has been diligent in paying down his mortgage. If you are not financing but want to assume, you will have to come up with the difference between what the buyer is asking and the amount left on the mortgage. Many times this amount can be onerous and you end up going to the bank for part of the financing anyway.

This is a great proposition for those who want to own real estate but because of previous dealings the bank wouldn't be interested in providing financing for them. Even though the real estate market is a solid investment, in Alberta especially, not having that relationship with the bank can hold you back severely and keep you from owning real estate. That is where the assumable mortgage is a godsend. As long as you take over the payments and keep them in good standing the bank should have no reason to question the transaction. You can own your own home and buy the property without the bank.

Rhonda Hoffman

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