- Joined
- Aug 30, 2007
- Messages
- 190
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 actually heard that as of 2/28/08 ALL Alberta lenders were required to follow suit- can anyone verify that?
But, we all knew that was coming. It has been discussed at the REIN meetings as well.
So, my question now is what other buying strategies are you finding useful in this market?
I have successfully used Agreement Of Sales in Alberta and Ontario when the market is favorable. Conventional mortgages where I qualify and JV set-ups where my partners qualify for the mortgage.
Of course, we have access to many unique strategies in REIN; perfect tenant strategy, rent-to-own, etc..
Let`s hear your insights on what is working (and what`s not) for you in Edmonton and other parts of Alberta.
PS: 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.
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 actually heard that as of 2/28/08 ALL Alberta lenders were required to follow suit- can anyone verify that?
But, we all knew that was coming. It has been discussed at the REIN meetings as well.
So, my question now is what other buying strategies are you finding useful in this market?
I have successfully used Agreement Of Sales in Alberta and Ontario when the market is favorable. Conventional mortgages where I qualify and JV set-ups where my partners qualify for the mortgage.
Of course, we have access to many unique strategies in REIN; perfect tenant strategy, rent-to-own, etc..
Let`s hear your insights on what is working (and what`s not) for you in Edmonton and other parts of Alberta.
PS: 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.