Going through a divorce or separation is emotionally challenging. I'm here to help you navigate the financial side with sensitivity and expertise, ensuring you can move forward with confidence.
Buyout Options
Keep your home
Remove Ex-Spouse
Refinance easily
Single Income
Qualify on your own
Confidential
Private & secure
100%
Confidential Service
When separating or divorcing in Canada, you have several mortgage options. I'll help you determine the best path forward for your unique situation.
Keep the family home by buying out your ex-spouse's share of the equity. Refinance the mortgage in your name only.
Sell the property and divide the equity proceeds as per your separation agreement. Both parties start fresh.
One partner moves out but both remain on the mortgage temporarily. Useful during separation period before finalizing divorce.
Canadian lenders typically require a formal separation agreement outlining property division before approving a buyout or refinance. I'll guide you through the financial requirements and work with your lawyer to ensure smooth processing.
Here's what you need to qualify for a divorce/separation mortgage buyout in Canada.
Employment Income
Minimum 2 years at current employer or in same field
Spousal Support (Alimony)
Can be used if it's court-ordered and guaranteed for 3+ years
Child Support
Most lenders accept 50-100% of child support as income
GDS/TDS Ratios
Max 39% GDS, 44% TDS (housing costs + all debts)
Separation Agreement
Signed agreement outlining property division
Divorce Decree (if applicable)
Court order finalizing divorce
Home Appraisal
Current market value assessment ($300-500)
Income Verification
Pay stubs, T4s, NOA, support payment agreements
Credit Report
Minimum 600 credit score (ideally 650+)
Minimum 20% Equity
Refinance up to 80% of home value (avoid CMHC insurance)
5-19.99% Equity
Refinance possible with CMHC insurance (adds 2.8-4% premium)
Less than 5% Equity
May need to sell or wait to build more equity
680+ Credit Score
Best rates from A-lenders (major banks)
600-679 Credit Score
Still qualify but may pay slightly higher rates
Below 600 Credit Score
Alternative B-lenders or private lenders available
Here's how I'll guide you through the divorce/separation mortgage process in Canada.
We'll discuss your situation confidentially. I'll review your separation agreement, income, credit, and home equity to determine your options.
I'll pre-qualify you with multiple lenders and provide a checklist of required documents (separation agreement, income docs, appraisal, etc.).
Order a professional appraisal to determine your home's current market value. This is crucial for calculating buyout amounts and loan-to-value ratios.
Submit your full application to the best lender for your situation. I'll manage the entire process and keep you updated every step of the way.
Your lawyer reviews the mortgage documents and handles the title transfer. Funds are released to buy out your ex-spouse, and the mortgage is registered in your name only.
Total Timeline
3-5 Weeks on Average
Answers to the most frequently asked questions about divorce and separation mortgages in Canada.
Understanding the Canadian tax and legal implications of divorce mortgage transactions.
If the home was your principal residence, transferring ownership to one spouse is generally tax-free in Canada. No capital gains tax applies on your primary home. However, consult with a tax professional to ensure proper documentation.
Canada Revenue Agency allows property transfers between spouses at "adjusted cost base" (what you originally paid), deferring capital gains tax. This is beneficial if you bought the home for less than its current value.
Most provinces exempt land transfer tax for property transfers between spouses due to separation/divorce. Ontario, BC, and other provinces offer this exemption with proper documentation (Form 5 in Ontario).
Spousal support (alimony) payments are tax-deductible for the payer and taxable income for the recipient in Canada. Child support is neither deductible nor taxable.
A legally binding separation agreement is essential for mortgage refinancing. It should outline property division, spousal/child support, and custody. Both parties should have independent legal advice (ILA certificates may be required).
In most Canadian provinces, both spouses have equal rights to the matrimonial home, regardless of whose name is on title. Your separation agreement must address these rights before a buyout can proceed.
If your ex-spouse remains on the mortgage, missed payments will affect both credit scores. Ensure the refinance or buyout removes them completely, or include mortgage payment responsibilities clearly in your separation agreement.
Update your home insurance policy to reflect the new sole owner. If you were relying on your ex-spouse's life insurance to cover the mortgage, consider obtaining your own mortgage life insurance or term life policy.
While I can guide you through the mortgage financing process, it's crucial to work with a family lawyer for your separation agreement and a tax accountant for tax implications. This ensures your interests are fully protected and you maximize your financial benefits. I'm happy to coordinate with your legal and tax professionals throughout the process.
Going through separation is difficult enough. Let me handle the mortgage complexities with sensitivity and expertise.
Your situation is handled with complete discretion and privacy. I understand the sensitive nature of divorce.
I'm here to guide you through this transition with empathy, patience, and understanding.
I shop multiple lenders to find the best rates and terms for your unique situation.
I'm paid by the lender, not by you. My services are completely free with no hidden fees.
I respond within 24 hours and keep you informed every step of the way.
I work directly with your family lawyer to ensure seamless processing and proper documentation.
"I understand how overwhelming this process can feel. My goal is to make the financial side as smooth and stress-free as possible, so you can focus on your future. Whether you're keeping the family home or starting fresh, I'm here to help you every step of the way."
MBR Mortgage
Licensed Mortgage Agent
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