What a vendor take-back actually means

Instead of a bank lending you the money, the seller does. The builder registers a mortgage against the home and you pay them. It is a normal, long-standing arrangement, and it is the reason terms are available here that no bank will write.

A bank in Canada cannot amortize beyond 30 years. A builder financing their own inventory is not bound by that cap, because the mortgage is private and uninsured.

Who this actually suits

• Buyers with a solid down payment who do not fit a bank's income test
• Self-employed buyers whose notice of assessment understates what they earn
• Newcomers without enough Canadian credit history yet
• Buyers who want a longer closing to sell an existing home first

If a bank has already said yes to you on good terms, take the bank. I will tell you that plainly rather than steer you here.

Get the current list and terms

Tell me what you are looking for and I will send the available homes with the builder's current terms in writing, including the rate. I would rather you saw the real numbers than a headline.

Financing is offered by the builder and is subject to their credit approval. Terms shown are indicative, are set by the builder and may change. Ali Bolourchi is a real estate Broker and is not the lender. Get independent legal advice before signing any vendor take-back mortgage.

Separately worth knowing: any eligible new home in Ontario under $1,000,000 can qualify for up to $130,000 back in HST rebates, for every buyer and not only first-time buyers. That applies province-wide, not just to these homes. Work out your rebate here.