PILLAR 01 · WEALTH FOUNDATIONS Evergreen Education EP 088

Vendor Take-Back Mortgage (VTB): How to Buy Real Estate With $0 Down | Money Strategy 5/6

A solo episode with Dalia Barsoum, Principal Broker, Streetwise Mortgages

LISTEN ON ▶ YouTube

6 min · December 30, 2025 · 44 views

WHAT YOU'LL LEARN

What a vendor take-back mortgage (VTB) is and why it works best in slow markets with motivated sellers
How to structure a VTB in first or second position behind traditional or private financing
The "gap fill" strategy: combining 10% buyer funds with a 10% seller VTB to meet 20% down payment requirements
How to set up a $0 down deal using a 70% private first mortgage and a 30% seller VTB
Why every term in a VTB—including interest and balloon payments—is fully negotiable
The critical importance of planning a refinance or value-add exit strategy before the VTB term expires
The risks of VTB financing and why you should consult a mortgage advisor who understands creative strategies upfront

Show Notes

Timestamps 7

Questions Answered 5

Mentioned In This Episode 1

In this episode, Dalia Barsoum breaks down the Vendor Take-Back Mortgage (VTB) — a creative financing strategy where the seller becomes the lender. She explains how VTBs work in both first and second position, why they are especially powerful in slow markets with motivated sellers, and how Canadian investors can use them to acquire residential and commercial properties with less of their own capital.

Dalia walks through three specific deal structures: filling a down payment gap with a 10% buyer / 10% seller split, a 90% VTB in first position, and a $0 down setup combining a private first mortgage with a 30% seller VTB. She also covers the negotiable nature of terms like interest and balloon payments, and delivers a critical warning: a VTB is temporary financing that requires a solid exit strategy through refinance or value-add before the term ends.

00:00:06 Introduction: Strategy #5 — The Vendor Take-Back Mortgage → 00:00:14 What Is a VTB? The Seller Becomes the Lender → 00:01:24 Example #1: Filling the Down Payment Gap (10% + 10%) → 00:03:13 Example #2: The 90% Seller VTB in First Position → 00:03:48 Example #3: The $0 Down Deal (Private + VTB) → 00:04:30 The Exit Strategy: Negotiating Terms & Balloon Payments → 00:05:29 The Risks: Why You Need a Refinance Plan →

What is a vendor take-back mortgage?

A vendor take-back mortgage is when the property seller loans the buyer money to purchase the property. As Dalia Barsoum explains, the seller can provide a large or small mortgage in either first or second position, making it a flexible creative financing tool.

How can I buy real estate with $0 down using a VTB?

According to the transcript, one structure involves obtaining a private first mortgage for 70% of the purchase price and negotiating a vendor take-back mortgage with the seller for the remaining 30%, allowing you to enter the deal with zero personal capital.

What are the risks of a vendor take-back mortgage?

The primary risk is that a VTB is temporary financing that typically lasts from six months to two years and must eventually be paid off. If you do not have a solid exit strategy—such as a refinance or value-add plan—you could lose the property when the seller refuses to renew and no other lender will take their position.

Can a VTB be in first or second position?

Yes. The transcript states that a seller can give you a mortgage in first position or in second position, depending on what you negotiate and how motivated the seller is.

Are VTB terms negotiable?

Yes. Dalia notes that everything is negotiable, including the interest rate and whether you make a balloon payment at the end of the term instead of monthly interest payments.

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