# How does 'Assumption of Mortgage' work for heirs?

> An assumption allow the heir to take over the existing mortgage debt and legal title of the property.

Category: Legal
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/legal/how-does-assumption-of-mortgage-work-for-heirs

## Answer
An assumption allow the heir to take over the existing mortgage debt and legal title of the property. Lenders typically still require the heir to 'qualify' for the debt under current B-20 rules, though some lenders allow a 'simple' assumption with no qualification if there is significant equity. If not qualifying, a full refinance is required. Heirs should check if the mortgage is 'transferable' in the original commitment document.

## Related guide
- https://ratellow.com/guides/estate-inheritance-mortgage

## Sources
- FCAC Consumer Rights: Death of a Borrower — https://www.canada.ca/en/financial-consumer-agency/services/industry/laws-regulations/guideline-existing-mortgage-loans-exceptional-circumstances.html#toc6
- B-20 Underwriting: Title Changes — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.2.2