# Does the 'Due on Sale' clause prevent all assumptions?

> Most conventional (uninsured) mortgages have a 'Due on Sale' clause.

Category: Strategy
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/strategy/does-the-due-on-sale-clause-prevent-all-assumptions

## Answer
### Strategic Proof

- Insured: Assumable by law (subject to credit).
- Uninsured: At lender discretion (often denied to force a new higher-rate loan).
- Release of Covenant: Crucial to ensure the SELLER is not liable if the buyer defaults later.

## Related guide
- https://ratellow.com/guides/assumable-mortgages-2026

## Sources
- Final Capital Adequacy Requirements Guideline (2026) — https://www.osfi-bsif.gc.ca/en/news/backgrounder-final-capital-adequacy-requirements-guideline-2026
- BANKOFCANADA — https://www.bankofcanada.ca/2025/07/staff-analytical-note-2025-21/#Introduction