What happens to mortgages if Alberta separates?

If Alberta becomes independent, your mortgage contract likely stays binding — but the banking system around it becomes murky.

Separatist groups say Canadian banks would simply apply for licenses to operate in an independent Alberta, making the transition seamless. Mortgage contracts are private agreements, they argue, not voided by a change in country status.

But economists and finance experts see complications. James Thompson, an associate finance professor at the University of Waterloo, says an independent Alberta would need to establish its own central bank and create a regulator equivalent to the Office of the Superintendent of Financial Institutions — the body that currently enforces mortgage stress tests.

The bigger puzzle: the Canada Mortgage and Housing Corporation. CMHC insures mortgages when borrowers put down less than 20 percent. An independent Alberta would either need to negotiate continued access to CMHC or build a provincial insurance equivalent from scratch. "Neither one of those is quick, and neither is really guaranteed," said Jeff Adamson, co-founder of Calgary-based fintech company Neo Financial.

Separatist advocate Keith Wilson suggests an Alberta Continuity Act would temporarily maintain federal banking laws until the province could write its own legislation. He also says an Alberta Housing and Mortgage Corporation could replace CMHC.

CBC reached out to Canada's six major banks — CIBC, BMO, Scotiabank, National Bank, TD, and RBC — but none commented. The Canadian Bankers Association declined to speculate.

The unknowns around currency, trade, and treaty obligations add another layer of complexity that separatists and economists haven't fully resolved.