Assuming a Mortgage

Carola Signer • February 3, 2023

Assumability of a mortgage is a mortgage feature that allows a buyer to “take over” the original mortgage secured by the seller when buying their property. To assume a mortgage, all mortgage terms must remain the same, and the buyer has to qualify for the mortgage to the lender’s satisfaction. Typically, fixed-rate mortgages are able to be assumed, while variable-rate mortgages and lines of credit are not assumable. 


For example, let’s say you purchased a home for $500k with a $300k mortgage and $200k that you saved for a downpayment on a 5-year fixed at 2.5%. A year later, you needed to sell your property because you took a job in a new city. You could sell your property and allow the buyer to assume your mortgage. If interest rates are now sitting at 5% and the property is now worth $550k, and you paid the mortgage down to $250k, the advantage to the buyer would be that they could assume your mortgage for the next 4 years at half the interest rate. Of course, they would have to qualify for the mortgage and come up with $300k to complete the purchase. 


Advantages of assuming a mortgage


As outlined in the above scenario, assumable mortgages are an attractive option if interest rates have gone up and the seller has a lower interest rate than what is currently available in the market. If the mortgage is assumed, the buyer will benefit from a lower interest rate. Also, the seller could avoid paying a prepayment penalty for breaking the mortgage midway through the term. Potentially, there is a chance to save on legal costs as well. 


Drawbacks of assuming a mortgage


For the buyer, when you’re assuming a mortgage, all the terms and conditions of the mortgage must remain the same, and you have to qualify for the mortgage. You’ll be scrutinized the same way you would for a new mortgage, and you’ll be required to pay the difference between the property value and the mortgage amount from your resources to complete the sale. Secondary financing is not an option with a mortgage assumption. 


For the seller, one of the significant issues faced is when someone assumes your mortgage, should they default on the payments; depending on which province you’re in and the terms and conditions of the mortgage assumption, there’s a chance the lender can still hold you liable for the mortgage. This means even if someone assumes your mortgage, you could still be on the hook for payments should they stop making payments or default on the mortgage. 


While it is possible to assume a mortgage, the truth is that mortgage assumptions are pretty uncommon in Canada.

RECENT POSTS 

Wait! Are You Really Ready to Buy That Home?

By Carola Singer • December 24, 2025
So, you’re thinking about buying a home. You’ve got Pinterest boards full of kitchen inspo, you’re casually scrolling listings at midnight, and your friends are talking about interest rates like they’re the weather. But before you dive headfirst into house hunting— wait . Let’s talk about what “ready” really means when it comes to one of the biggest purchases of your life. Because being ready to own a home is about way more than just having a down payment (although that’s part of it). Here are the real signs you're ready—or not quite yet—to take the plunge into homeownership: 1. You're Financially Stable (and Not Just on Payday) Homeownership isn’t a one-time cost. Sure, there’s the down payment, but don’t forget about: Closing costs Property taxes Maintenance & repairs Insurance Monthly mortgage payments If your budget is stretched thin every month or you don’t have an emergency fund, pressing pause might be smart. Owning a home can be more expensive than renting in the short term—and those unexpected costs will show up. 2. You’ve Got a Steady Income and Job Security Lenders like to see consistency. That doesn’t mean you need to be at the same job forever—but a reliable, documented income (ideally for at least 2 years) goes a long way in qualifying for a mortgage. Thinking of switching jobs or going self-employed? That might affect your eligibility, so timing is everything. 3. You Know Your Credit Score—and You’ve Worked On It Your credit score tells lenders how risky (or trustworthy) you are. A higher score opens more doors (literally), while a lower score may mean higher rates—or a declined application. Pro tip: Pull your credit report before applying. Fix errors, pay down balances, and avoid taking on new debt if you’re planning to buy soon. 4. You’re Ready to Stay Put (At Least for a Bit) Buying a home isn’t just a financial decision—it’s a lifestyle one. If you’re still figuring out your long-term plans, buying might not make sense just yet. Generally, staying in your home for at least 3–5 years helps balance the upfront costs and gives your investment time to grow. If you’re more of a “see where life takes me” person right now, that’s totally fine—renting can offer the flexibility you need. 5. You’re Not Just Buying Because Everyone Else Is This one’s big. You’re not behind. You’re not failing. And buying a home just because it seems like the “adult” thing to do is a fast way to end up with buyer’s remorse. Are you buying because it fits your goals? Because you’re ready to settle, invest in your future, and take care of a space that’s all yours? If the answer is yes—you’re in the right headspace. So… Are You Ready? If you’re nodding along to most of these, amazing! You might be more ready than you think. If you’re realizing there are a few things to get in order, that’s okay too. It’s way better to prepare well than to rush into something you're not ready for. Wherever you’re at, I’d love to help you take the next step—whether that’s getting pre-approved, making a plan, or just asking questions without pressure. Let’s make sure your homebuying journey starts strong. Connect anytime—I’m here when you’re ready.

Is Refinancing Your Mortgage a Good Way to Consolidate Debt?

By Carola Singer • December 17, 2025
If you're a homeowner juggling multiple debts, you're not alone. Credit cards, car loans, lines of credit—it can feel like you’re paying out in every direction with no end in sight. But what if there was a smarter way to handle it? Good news: there is. And it starts with your home. Use the Equity You’ve Built to Lighten the Load Every mortgage payment you make, every bit your home appreciates—you're building equity. And that equity can be a powerful financial tool. Instead of letting high-interest debts drain your income, you can leverage your home’s equity to combine and simplify what you owe into one manageable, lower-interest payment. What Does That Look Like? This strategy is called debt consolidation , and there are a few ways to do it: Refinance your existing mortgage Access a Home Equity Line of Credit (HELOC) Take out a second mortgage Each option has its own pros and cons, and the right one depends on your situation. That’s where I come in—we’ll look at the numbers together and choose the best path forward. What Can You Consolidate? You can roll most types of consumer debt into your mortgage, including: Credit cards Personal loans Payday loans Car loans Unsecured lines of credit Student loans These types of debts often come with sky-high interest rates. When you consolidate them into a mortgage—secured by your home—you can typically access much lower rates, freeing up cash flow and reducing financial stress. Why This Works Debt consolidation through your mortgage offers: Lower interest rates (often significantly lower than credit cards or payday loans) One simple monthly payment Potential for faster repayment Improved cash flow And if your mortgage allows prepayment privileges—like lump-sum payments or increased monthly payments—those features can help you pay everything off even faster. Smart Strategy, Not Just a Quick Fix This isn’t just about lowering your monthly bills (although that’s a major perk). It’s about restructuring your finances in a way that’s sustainable, efficient, and empowering. Instead of feeling like you're constantly catching up, you can create a plan to move forward with confidence—and even start saving again. Here’s What the Process Looks Like: Review your current debts and cash flow Assess how much equity you’ve built in your home Explore consolidation options that fit your goals Create a personalized plan to streamline your payments and reduce overall costs Ready to Regain Control? If your debts are holding you back and you're ready to use the equity you've worked hard to build, let's talk. There’s no pressure—just a practical conversation about your options and how to move toward a more flexible, debt-free future. Reach out today. I’m here to help you make the most of what you already have.