What Is a Vendor Take-Back Mortgage? | Outsmart The Banks Today!

A VTB mortgage lets a seller finance part of a home's price in Canada, with the loan secured on title to help bridge financing gaps.
If a primary lender is involved, written approval is usually needed, and the seller's loan typically ranks second for repayment if the buyer defaults.
For a $800K purchase, a buyer might use $200K down, $480K from a lender, and $120K from the seller over time in repayment.
Sellers need enough equity and flexibility to receive some proceeds later, while buyers should confirm down payment rules, legal terms, and total affordability.
Interest-only VTB loans can lower payments during the term, but the full balance remains due at the end, so buyers need a repayment plan.