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.