Variable closed:	1.65%
1 year closed:	1.64%
3 year closed:	1.59%
5 year closed:	1.69%
10 year closed:	2.84%

Mortgage Super Brokers > Library & Listings > Glossary > Definition: Assumption Clause

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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

Assumption Clause

Synonyms:	acquirement clause, fine print, stipulation, take over, transfer
Filed Under:	legal-contracts, mortgages, real-estate
Tags:	clause, contract, legal, mortgage, realty

Definition of assumption clause

assumption clause: 1. A provision in a mortgage contract that enables the buyer to assume or take responsibility for the existing mortgage loan from the seller.

Related Terms and Acronyms:

assignment The transfer of a mortgage from one person to another.
assumability The ability of a mortgage to be taken over from the original borrower by a new borrower.
assumable A loan or obligation that can be taken over by a new borrower.
assumable mortgage A mortgage that can be taken over or "assumed" by the buyer when a home is sold.
contract An agreement between two or more parties that can be enforced by law.
mortgage acceleration clause A provision of a loan agreement that lets a lender demand payment of the full balance under specified circumstances, such as sale of the property, default or refinancing. Not commonly used in Canada and/or Canadian lenders.
mortgage assumption Taking over the payment and responsibility for an existing property loan.

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