In mortgage finance, an assumption approval clause is a clause included in some mortgage agreements which prohibits the transfer of an assumable mortgage from a home buyer to a home seller without the mortgagee’s approval.
The exact terms and conditions set out in the clause may vary. Typically assumption approval clauses require that the property buyer be approved by the lender before being able to assume a mortgage from the property’s seller. In order to be approved, they must meet the mortgagee’s affordability requirements.
As a general rule, Swiss mortgage agreements include assumption approval clauses and mortgages from Swiss providers cannot be transferred without the provider’s approval.
Swiss mortgage comparison