What is Assumable Mortgage in Canadian mortgages?
A mortgage that can be transferred from seller to buyer, with the buyer taking over the existing rate and terms. Rare but valuable when existing rate is below current market rates.
Assumable Mortgage example
Worked example
Seller has $350K mortgage at 2.1% (2021). Buyer assumes it, saving vs current 5.5% rates. Lender approval required.