These people are still going to make money on the sale if you assume their mortgage.
Here is an example with very easy math...
Say you bought a house last year for $100,000. With appreciation this year it is worth $150,000. Over the course of the year say you paid the mortgage down by $5000.
So now the house is worth $150,000 and the mortgage is only $95,000. When you assume the mortgage they would want $55,000 from you to assume the mortgage.
It is a bit risky to allow someone to assume your mortgage as you are technically still liable if they default. However sometimes it makes it easier to sell. For people who can't qualify for a mortgage assuming is sometimes their only option. However if the bank won't qualify them do you want to take the risk?
Alberta is the only province in Canada that allows assumable mortgages.
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