diff --git a/src/wallet/rpcwallet.cpp b/src/wallet/rpcwallet.cpp
index 497a4120e5..891d650ad3 100644
--- a/src/wallet/rpcwallet.cpp
+++ b/src/wallet/rpcwallet.cpp
@@ -2647,6 +2647,7 @@ static UniValue createwallet(const JSONRPCRequest& request)
 
     DatabaseOptions options;
     DatabaseStatus status;
+    options.require_create = true;
     options.create_flags = flags;
     options.create_passphrase = passphrase;
     bilingual_str error;
diff --git a/src/wallet/wallet.cpp b/src/wallet/wallet.cpp
index 1751cbf5bc..0d07904924 100644
--- a/src/wallet/wallet.cpp
+++ b/src/wallet/wallet.cpp
@@ -253,13 +253,6 @@ std::shared_ptr<CWallet> CreateWallet(interfaces::Chain& chain, const std::strin
         wallet_creation_flags |= WALLET_FLAG_BLANK_WALLET;
     }
 
-    // Check the wallet file location
-    if (fs::symlink_status(fs::absolute(name.empty() ? "wallet.dat" : name, GetWalletDir())).type() != fs::file_not_found) {
-        error = strprintf(Untranslated("Wallet %s already exists."), name);
-        status = DatabaseStatus::FAILED_CREATE;
-        return nullptr;
-    }
-
     // Wallet::Verify will check if we're trying to create a wallet with a duplicate name.
     std::unique_ptr<WalletDatabase> database = MakeWalletDatabase(name, options, status, error);
     if (!database) {
diff --git a/test/functional/wallet_multiwallet.py b/test/functional/wallet_multiwallet.py
index 168d6be42c..d64d3dcb49 100755
--- a/test/functional/wallet_multiwallet.py
+++ b/test/functional/wallet_multiwallet.py
@@ -273,7 +273,8 @@ class MultiWalletTest(BitcoinTestFramework):
         self.log.info("Test dynamic wallet creation.")
 
         # Fail to create a wallet if it already exists.
-        assert_raises_rpc_error(-4, "Wallet w2 already exists.", self.nodes[0].createwallet, 'w2')
+        path = os.path.join(self.options.tmpdir, "node0", "regtest", "wallets", "w2")
+        assert_raises_rpc_error(-4, "Failed to create database path '{}'. Database already exists.".format(path), self.nodes[0].createwallet, 'w2')
 
         # Successfully create a wallet with a new name
         loadwallet_name = self.nodes[0].createwallet('w9')