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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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50% - Moderately

Assumption Fee


Synonyms:take over, transfer cost, update fee
Filed Under: legal-contracts, mortgages, real-estate
Tags: contract, legal, mortgage, realty
 

Definition of assumption fee

assumption fee
1. Lenders will charge a fee to update mortgage records when a buyer assumes an existing mortgage 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.
  • 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.

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