Financing Options for Your Current Mortgage

Assumable Mortgages

Say you took out your current mortgage when interest rates were much lower. A buyer may find your property more attractive if he or she can take over, or "assume" your mortgage.

Or suppose you're buying a smaller property and still have several years remaining on your mortgage term. The assumability option can help you get rid of your mortgage without a prepayment charge.

How does an assumable mortgage work?

If your buyer meets the lender's credit criteria, he or she will take responsibility for paying your mortgage balance with the same interest rate and expiry date.
If your buyer needs more funds than your current mortgage offers, they can finance (once qualified) the amount at current rates and at a term that matches the expiry date of the existing mortgage. From the balances and interest rates of the two loans, the lender will calculate a "weighted" interest rate for the full financed amount.
A buyer can only assume your mortgage if you choose not to take it with you to your new home. Learn more about portable mortgages.

IMPORTANT:

In most jurisdictions, a buyer assuming your mortgage relieves you of all further responsibility for the loan. In some provinces, however, your name might remain on the mortgage documentation until it is fully paid. This means that if your buyer defaults on payments, you could be held responsible. Contact your lender to find out if and how you can be relieved of any legal obligations when a buyer assumes your mortgage.



	Paying Off Your Mortgage Early

	Portable Mortgages

	Assumable Mortgages



	Talk to a Mortgage Specialist



	Mortgage Centre

	Community Corner

Privacy & Security | Legal | Accessibility