Take over the mortgage from the seller – yes or no?

What should you check when taking on a mortgage?

Many emotional aspects play a role in the question for or against mortgage assumption. If the property is simply perfect for you in all aspects such as location, size, aesthetics, etc., you are probably willing to make a lot of compromises. Nevertheless, you should carefully examine the facts and consequences: What exactly are the conditions of the financing to be taken over? Can you basically live with that? Specifically, it’s about these key figures:

• Interest rate: Is it higher or lower than the current market interest rate? What do these two scenarios mean for you?
• Term: How long does the fixed-rate mortgage last? Will you keep the property at least until the end of the term?
• Amortizations: Will you still have to pay mandatory amortizations?
• Lender: Can you live with the financial institution as your contractual partner?

You should be aware that as long as the contractual term has not expired, you have little opportunity to change these circumstances. However, a possible change or early termination of the contract, for example in the event of an early exit from the mortgage with cost consequences (prepayment penalty), could be an option. However, if the mortgage is terminated prematurely, clarifications would have to be made to check whether this is a sensible option.

Good to know: If you want to take over a fixed-rate mortgage from the previous owner of the house, the lender will check you in the same way as if you applied for new financing. This means that you must meet all portability criteria. Among other things, you must prove that you have enough income to be able to cover the mortgage and additional costs for your property.