We don\u2019t see much of this or at all these days because the interest rates are at their lowest. When they do go up, why wouldn\u2019t you want to assume the sellers rate at 3.75%. By assuming their mortgage and financing the rest to make up the selling price and you could potentially save a lot of money over the rest of their term.<\/p>\n
Quick note: <\/strong> Got this from my client today: “Okay, some very heavy conversations with brokers and banks here this morning. One thing is for sure is apparently variable mortgages are not assumable!”<\/p>\n 2. Balance of sale<\/strong> **\u201dlends\u201d:<\/strong> The vendor doesn\u2019t really hand over the money, it\u2019s just that you don\u2019t give him the amount until a later date.<\/p>\n Great benefits:<\/strong><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row custom_padding=”0|0px|0|0px|false|false” _builder_version=”3.19.18″ link_option_url=”https:\/\/www.montreal-realestate.ca\/english\/customized-property-search\/” global_module=”8669″][et_pb_column type=”4_4″][et_pb_image global_parent=”8669″ src=”https:\/\/www.montreal-realestate.ca\/english\/wp-content\/uploads\/2019\/03\/Do-a-customized-property-search.jpg” _builder_version=”3.19.18″]<\/p>\n<\/p>\n [\/et_pb_image][et_pb_text global_parent=”8669″ _builder_version=”3.17″]<\/p>\n<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Most of us assume that when it comes time to buying a building, whether it be a house or a million dollar structure, that there are only two ways to do it: Pay cash or get a mortgage. Well I\u2019m here to tell you that there are many, many other ways to do creative financing. […]<\/p>\n","protected":false},"author":2,"featured_media":8850,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"Most of us assume that when it comes time to buying a building, whether it be a house or a million dollar structure, that there are only two ways to do it: Pay cash or get a mortgage. Well I\u2019m here to tell you that there are many, many other ways to do creative financing.\r\n\r\nThe two easiest ways are standard text in our real estate purchase forms:\r\n\r\n#1. Assuming another\u2019s mortgage<\/strong>\r\nWe don\u2019t see much of this or at all these days because the interest rates are at their lowest. When they do go up, why wouldn\u2019t you want to assume the sellers rate at 3.75%. By assuming their mortgage and financing the rest to make up the selling price and you could potentially save a lot of money over the rest of their term.\r\n\r\nQuick note: <\/strong> Got this from my client today: \"Okay, some very heavy conversations with brokers and banks here this morning. One thing is for sure is apparently variable mortgages are not assumable!\"\r\n\r\n#2. Balance of sale<\/strong>\r\nThis is a great tool if you believe that you can increase the value of the building within a few\r\n\r\n
This is a great tool if you believe that you can increase the value of the building within a few\u00a0years or know that you will be able to pay it off when the term is due. The way it works is that the seller **\u201clends\u201d you a certain amount of money at an agreed upon rate for a limited time (usually 1-2 years). You pay them the interest either monthly, quarterly or annually for the time period on the total amount borrowed from them and at the end of the term or sooner, you pay the full amount back. This works if you are low on cash or wanting to keep your cash. After the 1-2 years renovating or re-renting (apartments) and increasing the value of the building, you refinance and pay the vendor back.<\/span><\/p>\n\n
![\"pic](\"https:\/\/www.montreal-realestate.ca\/english\/wp-content\/uploads\/2010\/02\/pic-for-Feb8.10.jpg\" "\\"pic")
<\/a>\r\n\r\n