What must a buyer do when assuming a mortgage?

When a buyer assumes a mortgage, adding their signature to the loan note is a critical step in the process. This action signifies the buyer's commitment to the terms of the existing mortgage and establishes their legal obligation to repay the loan. By signing the note, the buyer essentially agrees to be responsible for the debt, which is essential for lenders to have clarity on who is accountable for repayments.

Assuming a mortgage typically means that the buyer steps into the shoes of the original borrower, agreeing to continue making payments under the same conditions as outlined in the loan agreement. This can provide certain benefits, such as potentially favorable interest rates if the original loan terms are advantageous.

While it's possible that other actions, such as showing proof of income or having the original borrower removed, could be discussed during the assumption process, they are not required to finalize the assumption of the mortgage. Signing the loan note is the definitive step that formalizes the buyer's acceptance of the mortgage terms.