Dear REIN members,

I am working with RRSP lenders to set up second mortgage on the rental properties. The term is 5 years. They asked what if they want to be out of the mortgage earlier than the maturity date? My thoughts are:

1)I want to work with the lender who wants to leave the loan in the property for at least the 5 year term.

2)However, I still need to address their questions: want to be out earlier than the maturity date.

Would like to hear some suggestions from experienced investors?
--Will you say absolutely no withdraw in the contract during the term?
--Will you say"go find a replacement, and bear all the cost associated with it, legal fee and administration fee?
--Will you say"If I find a replacement for you, the replacement could be the investor or third party, they will buy your loan at 20% off?"
--How many days required for this typle of notice? 90 days?

I do not want to scare the private lender off, but their questions need to be addressed in the contract.

Thanks for your thoughts,

Angela