The idea is straightforward: someone else takes over the mortgage and the property, and you walk away from both. It does happen. It requires more than the two of you agreeing.
The lender decides
An assumption requires the lender's approval. They will assess the incoming person much as they would a new borrower — income, credit, and whether the loan still makes sense to them.
Whether your mortgage is assumable at all depends on its terms. Some are, some are not, and being in arrears makes any lender considerably more cautious.
The part that catches people out
Even where an assumption is permitted, you are not automatically released. Without a formal release, you can remain liable — meaning if the new person stops paying, the lender may still look to you.
This is the single most important sentence on this page. People hand over a property believing they are free of it, and discover years later that they were not. If you are pursuing an assumption, the release is the thing to insist on, in writing.
Where it comes up
Separations, most often — one partner taking on the home. Family arrangements. Occasionally a buyer who finds an existing rate attractive.
In a separation, the cleaner route is usually a refinance in the remaining partner's name alone, because it definitively removes the departing person. It requires them to qualify on their own, which is exactly why it sometimes cannot be done — and why people reach for an assumption instead.
If you are already in arrears
Assumption becomes harder. A lender looking at a defaulted file is unlikely to be enthusiastic about transferring it to someone else unless that person is clearly strong.
Which is worth knowing early, because time spent pursuing an assumption that was never realistic is time not spent on a sale that would have worked.
How to find out
Ask your lender directly whether the mortgage is assumable and what they would require. Then get legal advice on the release specifically — do not rely on anyone's assurance that you are "off the mortgage" without a document that says so.
Questions people ask
General information about the Alberta foreclosure process — not legal or financial advice, and nothing here guarantees an outcome. Every file is different.