Page number 39 of this guide
http://www.cic.gc.ca/english/pdf/kits/guides/EG7.pdf
a) Assets
List the total amount of unencumbered, transferable and available funds in your bank accounts, pensions, etc.
b) Liabilitiesut
Indicate the total amount (in Canadian dollars) of real property mortgages and any other personal debts.
c) Total funds available for settlement in Canada
With consideration to your total assets and liabilities, indicate the total amount (in Canadian dollars) of unencumbered, transferable and available funds that you have for settlement in Canada.
If they are considering to deduct property mortgage as liabilities then I think they will consider its evaluation as proof of fund at initial stage but while coming to Canada it must be in liquid form
I may be wrong but thats just my opinion.