Mortgages and Related Security… How Are You Liable? (Part 5 of 9)

Podcast Episode 5: “Mortgage Basics 5/9 – The Chain of Responsibility.”

A continuation of how mortgages work in Alberta including discussions of conventional mortgages, high ratio (CMHC) mortgages, personal guarantees, enforceability, assumptions and foreclosures. Also includes 10 very useful true and false questions and an explanation of the court process around a foreclosure.

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C.        Alberta Mortgage Law

More principles of mortgage law specific to Alberta:

ii)         High Ratio Mortgages

If the mortgage is an NHA high-ratio mortgage, the borrower remains personally liable to the lender for any deficiency.  This personal liability continues even if the borrower sells the property to a third party who assumes the mortgage and also attaches to the new purchaser and so on down the chain of title no matter how many times the property is subsequently resold so long as the mortgage is assumed by each new purchaser.

iii)        Mortgages Granted by Corporations

If the mortgage is granted by a corporation as opposed to an individual, the mortgage lender is not restricted to recovery of the land but can sue the corporation for the deficiency.


Contact Barry McGuire now. Alberta real estate needs an Alberta lawyer.

“Mortgage” image courtesy of used under Creative Commons Attribution-Sharealike 3.0.