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Old 01-16-2012, 06:04 PM   #7
ken0042
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Quote:
Originally Posted by Devils'Advocate View Post
#2) Yes, mortgages are assumable in Ontario. My co-workers asked about that. But why would someone want to assume a mortgage of 3.2% if the banks are now giving out 2.9%?
Does the buyer have to qualify there? How much equity do you have in your home?

When I bought my house I assumed the mortgage; and the reason why was that my credit sucked. If you have that kind of person looking at assuming the mortgage; an extra 0.3% isn't going to scare somebody who was just told the best they could get was 11.9%.

Also, if you have low equity if somebody assumes the mortgage they avoid CMHC costs. I don't have the numbers handy, but saving 2-3% off the top is better than gaining that 0.3%.
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