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Difference between revisions of "Mortgages and Financing a Home Purchase"
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Mortgages and Financing a Home Purchase (view source)
Revision as of 05:26, 17 February 2019
, 05:26, 17 February 2019→Why you might want a “portable mortgage”
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If the buyer can assume your mortgage, it’s very important to make sure you won’t still be responsible if the buyer later stops paying the mortgage. Your name stays on the mortgage and you are still responsible, unless your mortgage lets you apply to the lender to approve a buyer under [https://www.canlii.org/en/bc/laws/stat/rsbc-1996-c-377/latest/rsbc-1996-c-377.html#sec24_smooth section 24] of the ''Property Law Act''. Once the lender approves the buyer under this section, you are no longer responsible for paying the mortgage. | If the buyer can assume your mortgage, it’s very important to make sure you won’t still be responsible if the buyer later stops paying the mortgage. Your name stays on the mortgage and you are still responsible, unless your mortgage lets you apply to the lender to approve a buyer under [https://www.canlii.org/en/bc/laws/stat/rsbc-1996-c-377/latest/rsbc-1996-c-377.html#sec24_smooth section 24] of the ''Property Law Act''. Once the lender approves the buyer under this section, you are no longer responsible for paying the mortgage. | ||
==Why you might want a “portable mortgage”== | ===Why you might want a “portable mortgage”=== | ||
A '''portable mortgage''' is one you can transfer to a new property. It is useful if you get a very good mortgage rate for a long term and you move before the term ends, allowing you to transfer the mortgage to the new property without a penalty. You should clarify with the lender that all parts of the mortgage are transferable with the current amount still owing. | A '''portable mortgage''' is one you can transfer to a new property. It is useful if you get a very good mortgage rate for a long term and you move before the term ends, allowing you to transfer the mortgage to the new property without a penalty. You should clarify with the lender that all parts of the mortgage are transferable with the current amount still owing. | ||
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For expanded coverage of mortgages, including step-by-step guidance on getting a mortgage, see People’s Law School’s information on getting a mortgage at [https://www.peopleslawschool.ca/everyday-legal-problems/home-neighbours/mortgages/getting-mortgage peopleslawschool.ca]. | For expanded coverage of mortgages, including step-by-step guidance on getting a mortgage, see People’s Law School’s information on getting a mortgage at [https://www.peopleslawschool.ca/everyday-legal-problems/home-neighbours/mortgages/getting-mortgage peopleslawschool.ca]. | ||
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==Get help== | ==Get help== | ||
