Joel DyckReal Broker SK Ltd.
Saskatoon · From the topic map

Why do sub-3% assumable mortgages matter?

A sub-3 percent assumable mortgage matters because it can add real value for a buyer who inherits a rate well below what a new CMHC-insured mortgage would cost today, and most Canadian fixed rate mortgages are assumable in principle with lender approval.

The saving is only as valuable as the time left on the mortgage. A low rate with four years remaining is worth far more to a buyer than the same rate with fourteen months left, since Canadian mortgages compound semi annually and the benefit ends when the term does.

For a seller, a rate that low widens the pool of interested buyers rather than raising the benchmark price for the street, since a buyer's lender still has to approve the assumption and qualify them under normal underwriting.

Treat the assumable rate as one selling feature to arrange early with the lender, not as a number that changes the home's appraised value. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

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