Keeping the mortgage under the vendor`s name

[JBagorio]

Hi All,



Is it possible in a given purchase of a rental property to transfer title to buyers name, but keeps the mortgage under the vendors name? Given the willingness and trust of the vendor`Would the bank allow this? Any tax implications?



Please share your thoughts. Thanks!



Jason

 

[Thomas Beyer]

[quote user=JNB]Would the bank allow this? Some do, most do not unless you qualify i.e. apply as if new mortgage app.

 

[JBagorio]

Thomas, We are doing this with the intention of keeping the good rate the property is on, and the vendor concern of possibly paying the penalty.

 

[Thomas Beyer]

You could do an Agreement for Sale (AfS) and line up purchase date with mortgage expiry date.

 

[johnsu]

Hi Jason,



in theory banks wont allow it. I've heard in situations where in Alberta, you can easily change title ownership without banks permission but you run risk of bank finding out and foreclosing. I heard banks don't check until financing. This is a hear say of real estate investing so take what you want.



Another thing I realized as a risk is if the vendor doesn't make mortgage payments and keeps your payments for personal use. this will then potentially cause I foreclosure also.

 

[JBagorio]

Thanks Johnsu,

After more research I did find out that this option will not work. The banks will not allow this like you said. We desiderata on assuming the mortgage instead. Thank you all for your help!

Jason