Vendor Take Back Mortgage is financing provided by the Seller to the Purchaser. There are many reasons why this can attractive to both parties.

For example, the qualifications of the buyer may be less strict. Should the Buyer default on the mortgage, the Vendor can take back their property and retain the interest earned from the mortgage but also the potential appreciation the property made from the time of the sale to the time they took the property back.

A VTB is a registered mortgage on the property just like any other mortgage you would receive from a bank or lender. It can be a first, a second or even a third position mortgage.

Here are some of the pre-worded clauses found in WEBFORMS related to a Vendor Take Back Mortgage: