Assumable Mortgages in Calgary

Did you know that Alberta is the only Canadian province to allow assumable mortgages? That makes assumable mortgages a popular choice Calgary. In part one of our series on assumable mortgages in Calgary, we will look at how Assumable Mortgages work.

How does an Assumable Mortgage work?

Let’s assume a Calgary property owner is selling their Kensington condo for $398,000. This condo owner still has $353,000 left in to pay in their existing assumable mortgage loan.

An interested buyer comes along and would like to buy the condo. In Calgary, thanks to Alberta real estate regulations, the interested buyer only needs $45,000, the difference between the existing mortgage and the asking price on the condo.

After that, they assume the previous owners’ mortgage and become Calgary condos owners! Next time we will look at the benefits to assuming a mortgage.

Refinancing your mortgage can save the average Calgary home owner thousands of dollars over the life of their mortgage. How? By lowering the interest rate or decreasing the term, Calgarians can reduce their mortgage payments right away. Calgary house owners may choose to refinance their mortgage in order to pay bills, invest, travel, or fix up their house.

Getting a lower interest rate
Refinancing to get a lower mortgage rate is a good idea as long as you keep some pointers in mind. Make sure that if you refinance your Calgary mortgage, the refinancing fees will be paid off in the savings you receive from the lower interest rate.