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Home CONTACT ME Meet Steven Porter Homes For Sale Neighbourhood Sales Activity Report Free Home Tips Free Brochures Home Services Centre Local Community Resources Frequently Asked Questions eMail Us	Tip: What Every Seller Should Know About Owner Financing Even though interest rates currently make high ratio, CMHC insured mortgage loans more available to more buyers, seller or VTB (vendor-take-back) financing is still a very good option for both buyers and sellers. It can be a "win/win" situation for both buyers and sellers. That’s why real estate transactions involving seller financing of some sort can be attractive (more attractive in some situations than others). Here’s how "seller financing" works. It's usually in the form of an open or closed, second mortgage offered by a seller. The loan is normally a short-term with a "balloon" payment at the end. The buyer makes fixed-rate monthly payments paying off the balance ant the end of the term, usually 3 to 5 years. One very common seller financing arrangement is for 15% of the purchase price, with the buyer putting down 10% cash and arranging conventional financing for 75% of the home’s purchase price. What seller financing can do for a seller. It can speed up the sale of your home or real estate property. It can help you get a better price. Provides you with a regular income. In the event of an income or second property, it helps reduce capital gains taxes by spreading your profit over several years (especially advantageous in substantial financing). It can provide a higher rate of return than on other investments. After your home is sold, you have the option of selling your second mortgage to another lender, or mortgage broker In this case you would receive the interest profits upon the sale (usually reduced by a discount paid to the purchaser of the mortgage). Potential risks to watch out for. Possible buyer default on the loan. Lapsed or slow monthly payments. In the event of "Power of Sale" or foreclosure you are paid out for your mortgage out of the balance of the sales proceeds only after the first mortgagor has been paid. Precautions. Get a 10% deposit with the offer to purchase the home. Check a buyer’s credit rating carefully. Refuse to make your loan assumable. Structure your loan so that it can (if you wish) be sold to another lender. Have your lawyer draft the mortgage documents Talk to us about financing options that can help you sell your real estate property faster and for more money. Please call or e-mail us with your real estate needs.		"HomeALERT" Receive New MLS Listings by E-mail "Informed Home Buyer-Seller" eNewsletter, Subscribe FREE RELOCATING? Essential, Selling, Tips "Careful Moving" Checklist Free, Home Buyers Guide Free, Home Sellers Guide Refer family or friends to Steven For "Sale By Owner" centre Putting on a Better Garage sale Free Vacation Checklist REALTORS®, refer your clients here
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	Steven Porter ABR Salesperson/Accredited Buyer Representative Direct: 905-875-2582, Office: 905-338-9000 e-Mail: steven@stevenporter.ca RE/MAX Aboutowne Realty RE/MAX.com RE/MAX O/A MLS.ca OMDREB
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