Quote:
Originally Posted by moncton golden flames
isn't a mortgage essentially a 'rent to own' scenario? you don't own the house until it's paid for, the bank does, right?
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Yes and no. In Alberta the answer is no and has been for quite some time. Historically and in some jurisdictions you could certainly draw some pretty close comparisons.
In deed title systems, the bank would often 'hold the deed' meaning they literally had physical possession and control of the piece of paper that denotes ownership of the land. In contrast, in Alberta and other land registry jurisdictions you own the land, the government holds all the deeds and the bank has a 'secured interest' in your property that is not ownership, and which they cannot convert into an ownership interest without some legal process such as a foreclosure or quit claim. This is in contrast to the deed system where the bank has de facto ownership by virtue of having possession of the deed.
With respect to the previous statements about assumptions and rent-to-own arrangements. For a buyer they can be great, for a seller they can be risky. Assumptions have more or less disappeared in my experience and I don't think I'd hold my breath looking for a house with an assumable mortgage. Rent-to-own's are tricky and a Seller really needs to have a good contract in place.