Need Mortgage Advice from CP Oracle

[Ayrahb]

I own an acreage (nothing commercial) in the Vulcan county with a half-finished house and a few other buildings on it.

There is no mortagage on it right now, but I am looking to "re-mortgage" the property for up to 50% of the value. Is this at all possible, because a couple of banks kept pushing a home equity line of credit on me (which I don't want for the reasons below)?

Is there a way to ensure that a mortgage can be transferred to/assumed by someone with poor credit? Maybe some type of additional insurance in case of default or something. The person I would like to get the property called Approved Mortgage and they quoted him a rate of 15%.

[ken0042]

When I bought I assumed the mortgage. From what I recall, any mortgage in Alberta is assumable; but keep the following in mind:

- The bank has the right to call in the mortgage after it has been assumed. Usually this doesn't happen; especially if the market goes up.
- Banks are also watching for mortgage fraud. I'm not saying what you are doing is fraudulant; but it could raise a red flag- new mortgage, then it gets assumed right after.

[Red]

Banks don't like giving mortgages on land without a house on it.

[Ayrahb]

My idea is definitely to help this person get the mortgage by using legal means. That is why I describe the situation to the banks right off the bat. No money is worth prison time, IMO.

Just to clarify, the 3000 sq.ft. "unfinished house" is only needing siding and drywall25.

I guess it's 15% interest for him...

Thanks, folks.

[Sample00]

Originally Posted by Red

Banks don't like giving mortgages on land without a house on it.

the home needs to be livable in order for the banks to put a mortgage on the property.

If the home is not livable in its present state. Banks will typically go the route of a personal loan/LOC etc, in which case you are looking at 50% max. unless of course its the ATB, and they might look at 75%.
either way, those loans/LOC are not assumable.
Alberta is the only province in which you can assume a mortgage.