Mortgage Offers Canada
Taking over a home Mortgage.
I have a friend, and due to some personal issues she is no longer to keep her home. It is a townhouse in Brampton, Ontario (Canada). I have offered to step in and just take over the mortgage payments and just transfer the home ownership in my name. I have never owned a home before and am not sure what the correct protocol would be in this situation. How do I go about doing something like this, and is this even a legal/smart thing to do. Any help would be greatly appreciated.
As stated above, this is perfectly legal. However, in contrast to other info stated above, it may or may not be a breach of contract on the part of your friend.
If she got the loan representing that she would owner-occupy the property, then there is probably an “Alienation Clause” in the Trust Deed or Mortgage. Find the paperwork with one of those two titles on it, and just read the thing. Also be sure to read any addenda to the Trust Deed or Mortgage.
However, if she got the loan as “non-owner occupied”, then it’s very likely that there is no “Alienation Clause” in the Trust Deed.
And what does an Alienation Clause say? It says that if your friend gives away all, or any part, of the ownership of the property for which she got the loan, then the bank can call the note due and payable right now.
Chances are she has an Alienation Clause, but that’s hardly a foregone conclusion at this point in time.
As for actual transfer of the ownership, consider some sort of quiet title action, such as a Quit Claim Deed, or its Canadian equivalent.
Remember that if you do things as you have outlined, that you will be on title, while your friend will still be on the loan. Transfer of title does not mean you are officially assuming the loan. It’s still hers on paper.
And yes, you should ABSOLUTELY talk with a real estate attorney, at least for a few minutes, about what you are contemplating here. I see so much wrong advice given in this forum. Talk with an expert before you make a move.
Good luck to you!
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