RRSP Mortgage - Personal Guarantee

[BlueRibbonPartnerships]

In addition to having the RRSP mortgage registered on title, is it legal to give a personal guarantee that covers the principle and accumulated interest?



Thanks in advance for your time

Peter

 

[GarthChapman]

Hi Peter,

You can indeed ask for a personal guarantee along with a mortgage. If the loan goes bad the Lender will usually choose the foreclosure route as it is generally preferrable to going after the Borrower under the personal guarantee. As I understand things, at least in Alberta, they cannot ride both horses (meaning to act on both avenues of realizing on the debt).

You may find you get more expert attention on this question if you post it in Ask An Expert - Legal.

Hope that helps a bit,