Peterborough , Ontario · Member since 2015 · 111 posts · 15 votes
Hi all
I am wondering if seller financing works the same in Canada, mainly Ontario. I have a dinner few properties in mind, "not even sure if the sellers will be interested". Just looking for anyone experience in Ontario...
I am wondering if seller financing works the same in Canada, mainly Ontario. I have a dinner few properties in mind, "not even sure if the sellers will be interested". Just looking for anyone experience in Ontario...
Thank for any help!
Lee
Yes, a vendor carry is possible in Canada (Ontario or any other province). A more detailed answer will depend on several factors:
Are you looking for the vendor to carry the entire mortgage, or just a portion;
Are you looking at residential (1-4 unit) or commercial (5+ unit {multifamily}, office, etc);
How much are you bringing to the deal?
In the case of a 100% vendor carry, this is a mortgage and note between you and the vendor. I would have the papers drawn-up / vetted by an experienced real estate attorney just the same. A full vendor carry is like a blue lobster - they exist, but are few and far between.
If you are buying a residential property and are using a conventional lender, they may not be crazy about vendor financing (the underwriters mostly service Dick & Jane and do not see such things very often .... and do not like different). Those who allow it, will likely still expect you to bring 20% to the table. If you are buying commercial, the lender will be familiar with vendor financing and will likely allow 10-15%+, provided you bring a 10 - 15%+ downpayment.
Lee Jackson
Did this deal ever go through? Have you done any others. We found an opportunity and are looking into some type of seller financing. Just looking to see what others have done.
Hi there @Kristina Schmitt
Unfortunately, I was too late. Someone else bought the property.
I have made other offers on some potential seller financed deals. They all fell through as the numbers did not meet my requirements.
I also had another offer in, the seller was doing a lease option style of seller financing called "Agreement of Sale"... also fell through. Seller ended up wanting to keep the buildings, as his interest rate / tenants were great. He was offering 4.5% on a 5yr lease/mortgage, and even a potential second as a downpayment @ 7% interest only. It met my requirements too.
So, needless to say, I am always looking for potential buys.
It is never going to hurt to ask. make an offer that works for you. remember, with seller financing, pretty much everything is negotiable....