Do you know what an assumable mortgage is?
An assumable mortgage allows you to take over or assume someone else’s mortgage and their property. It also allows someone else to take over your mortgage and your property. The terms of the original mortgage must stay the same.
This is something you may consider if:
You’re a buyer and interest rates have gone up since you first got your mortgage you’re a seller and want to move to a less expensive home but want to avoid prepayment fees because you have several years left on your existing term Most fixed-rate mortgages can be assumed. Variable-rate mortgages and home equity lines of credit can’t. The lender must approve the buyer who wants to assume the mortgage. If approved, the buyer takes over the remaining mortgage payments to the lender. The buyer is also responsible for the terms and conditions set out in the mortgage contract. In some provinces, the seller may remain personally liable for the assumable mortgage after the sale of the property. If the buyer doesn’t make their mortgage payments, the lender may ask the seller to make the payments. Some lenders may release the seller from the responsibility if they approve the buyer for the mortgage.
To learn more about this option, get in touch today!
