Document background
The Mortgage Loan Assumption Agreement is utilized when an existing borrower wishes to transfer their mortgage obligations to another party in Singapore. This document is particularly relevant in situations involving property sales where the buyer wishes to assume the existing mortgage, family transfers, or business restructuring. The agreement must comply with Singapore's strict banking and property laws, including MAS guidelines on total debt servicing ratios and loan-to-value limits. It provides comprehensive details about the original loan, the property, payment terms, and the responsibilities being transferred. The document ensures all parties understand their rights and obligations under Singapore law, and typically requires approval from the lending institution.
