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Debra
Debra, Lawyer
Category: Canada Law
Satisfied Customers: 98396
Experience:  Lawyer
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We live in Alberta. We purchased a home son outright as s

Customer Question

We live in Alberta. We purchased a home for our son outright as his credit was not good and put a mortgage against the property. He has remarried and his credit is still not good and we have been asked to disharge the mortgage on the property so that the property can be put in his wife's name so that they can get a larger home. We have no issue with discharging the mortgage, but at a later date once everything has been finalized and final payment from the bank has been made can we put ourselves back on the property as a mortgage holder in the 2nd position?
Submitted: 1 year ago.
Category: Canada Law
Expert:  Debra replied 1 year ago.

Do your son and spouse agree with this?

Have they asked the bank if they will consent?

Customer: replied 1 year ago.
No they have not asked. Is it possible to do a caveat, promissory note or mortgage in the 2nd position?
Customer: replied 1 year ago.
They were told that the property had to be put in her name so that she could get the loan. The property has doubled when we purchased it and with the new home on the land it will double if not triple again.
Expert:  Debra replied 1 year ago.

If they both agree then they need permission from the bank. Some banks won't allow it unfortunately.

If they do then a second mortgage is best. A caveat is not good enough.

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