You can use this option to offer your mortgage to a prospective buyer, who can take it over with the purchase of your home if he or she qualifies for an RBC Royal Bank mortgage. Allowing your buyer to assume your mortgage, particularly if it's a low-interest, longer-term mortgage, is a good tactic in a buyer's market, especially when mortgage rates are rising.

When there are more homes for sale than potential buyers, an attractive mortgage rate can help boost the appeal of your home and swing a sale in your favour. And if rates are on the rise, your low-rate mortgage gives your buyer built-in monthly savings until the end of your mortgage term.

Assumable mortgages are an option if:

• Your buyer assumes your mortgage, you can be relieved of all responsibility related to its fulfillment.
• Your buyer assumes only a portion of your mortgage, you may be required to pay a prepayment charge on the unassumed balance.
• Your buyer needs an amount that's higher or lower than your outstanding mortgage balance, here's what happens:
  • a higher amount is required, the buyer can apply to Add-on to the existing principal balance.
  • the buyer needs less than your outstanding mortgage balance, the amount required is transferred to the buyer and you pay off the difference. The balance that has not been assumed may be subject to prepayment charges. For example,
    
    Your current mortgage $80,000
    Your buyer assumes $60,000
    You must pay off $20,000¹⁴

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.