Ontario Real Estate Licensing Exam Practice · Question
John has an existing mortgage on his home in Hamilton. A potential buyer, Emily, wants to take over John's mortgage with its current terms and conditions. What is this financial arrangement called?
Mortgage assumption occurs when a buyer takes over the seller's existing mortgage, subject to lender approval, and often benefiting from the existing interest r
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Question: John has an existing mortgage on his home in Hamilton. A potential buyer, Emily, wants to take over John's mortgage with its current terms and conditions. What is this financial arrangement called?
Answer options: ✅ Mortgage assumption
- Mortgage refinancing
- A blended mortgage
- A collateral mortgage
Correct answer: Mortgage assumption
Explanation: Mortgage assumption occurs when a buyer takes over the seller's existing mortgage, subject to lender approval, and often benefiting from the existing interest rate and terms.
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