Definition: When the buyer of your property takes over your existing mortgage including the amount owing, the balance of the remaining term, the existing rate and payment amount; they have assumed your mortgage.
Options:
- Here are two reasons to consider letting someone assume your mortgage:
- If you have a good interest rate on your mortgage, and want to sell your home for as much as possible, it may attract potential purchasers
- If someone assumes your entire mortgage, your lender should not charge you any penalty
- Not every lender offers this option
- The buyer must first qualify with your lender to assume your mortgage
- You might want to keep your mortgage and so porting it to your new home as discussed earlier may be a better option for you
