Mortgages are loans to a person, secured by real estate. If the real estate is sold with a mortgage in place, the previous owner is still liable as the mortgage is in her/his name. The only difference in Alberta is that the lender on a conventional (non-CMHC insured) mortgage cannot go after the borrower's other assets in case of a default, just ruining her/his credit. CMHC loans are different, in that CMHC will insure the banks for default, and then pursue the original borrower. Thus, any assumed mortgage has risk for the seller ! In any province you can switch title and the mortgage stays on it, without qualification. Then the bank has the option to deem the mortgage in default. Some banks pursue this, especially if the rate is low, but some banks do not, especially if the rate is high and the payments are made !
