What to know about vendor take-back mortgages
Consider a VTB. But is this strategy allowed in Canada? The short answer: Yes—but with conditions.
A VTB mortgage involves the seller financing part of the home purchase by lending money directly to the buyer. The buyer still obtains a primary mortgage from a lender, but the seller’s loan is registered in second position behind the main mortgage.
Most A-lenders (like big banks and credit unions) are very conservative and rarely allow secondary financing unless the borrower has a very strong profile and the total loan-to-value (LTV) remains within acceptable limits.
- canadianmortgagetrends – https://www.canadianmortgagetrends.com/2025/03/when-can-a-seller-lend-you-money-what-to-know-about-vendor-take-back-mortgages/es/