Assumable Mortgage - Pros and Cons

[johnve03]

Hi folks,


Appreciate if you can tell me the pros and cons of letting somebody to assume the mortgage

Is it true that I can be off the liabilities, after the new buyer have paid the mortgages for 1 year

 

[MonteDobson]

I assume you are selling a property with an assumable mortgage. 1st step would be to check with your lender to see if it is assumable by qualifying or not? Also check with an experienced AB lawyer (ie. Barry Mcguire @ Ritchie Mill) to see if you could be on the hook or not. He had a great presentation on this subject 2 weeks ago at the Calgary conference and I believe that yes you can be off the hook (depending on if it is personal or corporate), but your credit rating could be severely damaged if the mortgage were in default.

Best to check with an experienced lawyer and mortgage broker!!