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The Mortgage Assumption Letter is a crucial document in Canadian real estate transactions where a buyer wishes to take over the existing mortgage of a seller. This document is typically used when interest rates have increased significantly since the original mortgage was obtained, making it advantageous for the buyer to assume the existing mortgage rather than obtaining a new one. The letter, governed by Canadian federal banking laws and provincial property legislation, provides formal approval from the lending institution and outlines all relevant details of the assumption, including the remaining balance, interest rate, and any conditions that must be met. The Mortgage Assumption Letter must comply with requirements set forth by the Bank Act, provincial property laws, and, where applicable, the National Housing Act for insured mortgages. It serves as the official record of the lender's consent to transfer the mortgage obligations and specifies any additional requirements or conditions for the assumption to take effect.

1. Lender Information: Full legal name and contact details of the lending institution

2. Date: Current date of the letter

3. Recipient Information: Full names and addresses of both the assuming borrower and current borrower

4. Mortgage Reference: Original mortgage details including registration number, date, and property address

5. Assumption Approval: Clear statement of approval for the mortgage assumption

6. Current Mortgage Balance: Statement of the outstanding principal, interest rate, and remaining amortization period

7. Assumption Terms: Key terms and conditions of the assumption, including the effective date

8. Required Actions: List of steps the parties need to take to complete the assumption

9. Closing Statement: Contact information for questions and next steps

10. Authorized Signature: Signature block for authorized bank representative