Mortgage Glossary

Assuming a mortgage

Mortgage assumption can happen when a purchaser purchases a property that has an existing mortgage on it, and takes over the existing mortgage on the property. The purchaser assumes the mortgage from the seller and takes on all responsibilities for the mortgage.

When assuming a mortgage, most banks and lenders will require that purchaser and new borrower qualify for assuming the mortgage.

Although assuming a mortgage is not very common in Canada, a purchaser will likely assume a mortgage as the seller has a low interest rate mortgage, upon the consent of the seller allowing the purchaser to assume a mortgage.

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