Canada Mortgage Professionals Practice Exam 2026 - Free Mortgage Licensing Questions and Study Guide

A transfer mortgage refers to the ability to move an existing mortgage from one property to another without incurring penalties or needing to pay off the current mortgage. Option B describes a renewal with a different lender, which can be a part of transferring a mortgage or refinancing, but it does not capture the essence of what a transfer mortgage typically involves.

In this context, a transfer mortgage usually enables a homeowner to retain their existing mortgage terms and conditions while shifting the mortgage to a new property. This aspect is crucial for homeowners who might have favorable mortgage rates or conditions that they want to maintain when purchasing a new home.

The other options do not accurately reflect the concept of a transfer mortgage: additional borrowing doesn't pertain to the transferring aspect, a loan for purchasing a property refers more to a new mortgage rather than an existing one, and stating that a mortgage cannot be modified implies a lack of flexibility that does not align with the function of transferring a mortgage. A transfer mortgage inherently involves preserving the existing mortgage benefits while changing the collateral to a different property.