Assumable Mortgage
A mortgage that can be transferred from seller to buyer at sale, preserving the existing rate and terms — increasingly valuable when market rates are higher.
An assumable mortgage allows a qualified buyer to take over the seller's existing mortgage at sale, including its rate, term, and balance. When market rates are meaningfully higher than the seller's locked-in rate, assumption can save the buyer thousands over the remaining term. The buyer must qualify with the lender under current underwriting criteria, and the lender must approve the assumption. In practice, assumption is rare in Canada but has become more relevant in the 2024–2026 market where many borrowers hold 2020–2021 rates below 2.0%.