Document background
The Mortgage Assumption Agreement is a crucial document in Singapore's property financing landscape, used when a party wishes to take over an existing mortgage from the current borrower. This agreement becomes necessary in various scenarios, such as property transfers between family members, business restructuring, or when a buyer prefers to assume an existing mortgage rather than obtain new financing. The agreement must comply with Singapore's strict property and banking regulations, including MAS guidelines, and may require additional considerations for HDB properties or when CPF funds are involved. The document outlines the terms of assumption, releases the original borrower from obligations, and establishes the assuming borrower's responsibilities while maintaining the lender's security interests.
