Home Ownership by Country
Vendor Take-Back Mortgage
What is a ‘Vendor Take-Back Mortgage’
A vendor take-back mortgage is a type of mortgage in which the seller offers to lend funds to the buyer to help facilitate the purchase of the property. The take-back mortgage often represents a secondary lien on the property, as most buyers will have a primary source of funding other than the seller.
Explaining ‘Vendor Take-Back Mortgage’
In most cases, the take-back mortgage is offered at a rate below market value. This makes the option more attractive for the buyer, which can translate into a fast sale for the seller because another source of financing is being offered. Take-back mortgages often allow buyers to purchase property valued above their traditional financing limits.
Vendor Take Back Mortgage FAQ
What is vendor take back financing?
What is a buy back mortgage?
Is owner financing a bad idea?
What is a vendor take back note?
Why are seller carry back loans dangerous for sellers?
- Residential mortgage lending in metropolitan Toronto: a case study of the resale market – onlinelibrary.wiley.com [PDF]
- Housing finance in early 20th century suburban Toronto – www.erudit.org [PDF]
- Local strategies in resale home financing in the Toronto housing market – journals.sagepub.com [PDF]
- The Contract for Deed as a Mortgage: The Case for the Restatement Approach – heinonline.org [PDF]
- Substitution or complementary effects between banking and stock markets: Evidence from financial openness in Taiwan – www.sciencedirect.com [PDF]
- Vendors and Purchasers-Damages-Real Estate Purchaser Entitled to Increased Mortgage Interest Costs as Damages from Seller Who Breaches Sales Contract – heinonline.org [PDF]
- A Financial Revolution in Agriculture – heinonline.org [PDF]