@GeddyH
with most mortgages, there is a due on sale clause, so if there was a mortgage on the property before you transferred title, it would probably have to be paid off. if you have not informed the financial institution about the title transfer run to a lawyer. this could be serious.
if there wasn't a previous mortgage. fine. but as stated for your son to deduct the interest the installment loan must be secured by the property. if it is not the interest your son pays you would still be taxable to you. another thing, the interest rate you're charging must not be below the market rate, if so you would have additional interest income over and above what your son is paying.
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