I am getting Divorced - Spousal Buyout
Getting Divorced or Separating?
Going through a Divorce or Separating is stressful enough. Having to deal with selling a house certainly compounds that stress. Thankfully, we have a special Spousal Buyout Program that might work for you and remove the stress of having to sell your home!
Under the regular mortgage Refinance rules, you are only allowed to refinance up to 80% of the property's value. This leaves 20% of your equity tied up in the home. Normally, the only way to access that equity is to sell the property so you can split the equity with your ex-spouse or partner. Selling a house and moving is time consuming, stressful, and expensive. It also further disrupts your family and may involve your children having to change schools and lose their friends.
How Is This Program Different?
The Spousal Buyout Program is different because it falls under the mortgage Purchase rules which allows you to finance up to 95% of your home's value. Therefore, you may be able to keep your home and avoid moving while enabling you to pay your ex-spouse or partner their portion of the home's equity, and you help maintain some stability in an otherwise turbulent time.
To qualify for this program, you must have good credit and you must be able to afford the mortgage on your income alone. Both you and your ex-spouse or partner must currently be on the deed to the property. And, you will need a legal Separation Agreement and a Purchase Agreement prepared by your lawyers.
Calculate Mortgage Payments
We have a great Mortgage Qualifier Calculator that will help you determine if this program is an afforable option for you.
Important Program Features
In some cases we may be able to consolidate some debts to help with affordability, but these debts must be disclosed in the Separation Agreement.
You do not have to pay Land Transfer Tax again and we may be able to Port any existing high-ratio CMHC or Genworth insurance to try and help save you some money.
Please give your local Mortgage Managers broker a call to set up a personal meeting to discuss your mortgage options further.