Canadian Financial, Real Estate and Mortgage Glossary

Assumption Fee

Definition of assumption fee

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.
• closing costs   The miscellaneous expenses involved in closing a real estate transaction that are over and above the purchase price. Some of the closing costs include title insurance, appraisal fee.
• lender   The bank or mortgage company offering the loan.
• mortgage assumption   Taking over the payment and responsibility for an existing property loan.
• origination fee   The fee a lender charges to process a loan. It usually includes the cost to prepare loan documents, check a borrower's credit history, inspect the property and sometimes conduct an appraisal. CanEquity will in most cases use a lender who doesn't charge this fee or we will cover the cost in full.
• pre-paid expenses   also called prepaid items or prepaids -- Recurring costs such as taxes, insurance and interest that are paid at closing and which cannot be financed.