Keeping the home after a separation is possible for some people. It takes a plan, legal advice and a lender willing to approve it on your own.
A separation is stressful enough without money questions on top of it. If you want to keep the home, the usual step is to buy out your former partner, which often means refinancing so that their name comes off the mortgage and the title. This guide explains the mortgage side in plain language. It is not legal advice, and a family lawyer should be your first call.
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1A buyout normally means one person pays the other for their share of the home, often by refinancing. The new mortgage pays out the old one and the departing partner, and the title is changed.
2The lender will approve the remaining owner on their own income, credit and debts. Support payments you receive or pay may be counted differently by different lenders, and documents are usually required.
3The agreement between you, usually a separation agreement or court order, sets the amount and terms. Get independent legal advice on that agreement before arranging financing.
4Costs may include a penalty to break the old mortgage, legal fees, an appraisal and lender or broker fees. Everything is subject to lender approval, and nothing here is a guarantee.
Get ready
What lenders will ask you for
Government photo ID
The separation agreement, domestic contract or court order, or a signed draft, if you have one
Your latest property tax bill, proof of home insurance and current mortgage statement
Income proof: pay stubs, notices of assessment, and any support payments received or paid
A list of your debts and monthly obligations, plus any other assets you hold
Your options
Which kind of lender fits you
Option 1
Refinance and buy out your partner
A new mortgage pays out the old one and your partner. Available when you qualify on your own.
Option 2
Add a co-signer or guarantor
A family member with income may help you qualify. They take on legal responsibility, so they should get their own advice.
Option 3
Alternative or private lender
May be used when you do not meet bank rules right away. Costs more, so plan to move to a bank once things settle.
Option 4
Sell the home
Sometimes the most practical option. A broker can explain the mortgage side, such as penalties and timing, while your lawyer guides the legal side.
Avoid these
Common mistakes
!Arranging the financing before the agreement is settled. The numbers can change, and the lender will need the final documents.
!Not getting independent legal advice. Each person should have their own lawyer, and the lawyer, not the mortgage broker, advises on rights and obligations.
!Forgetting the cost to break the old mortgage, plus legal and appraisal costs, when working out the budget.
!Underestimating the new payment on one income, including property tax, utilities and upkeep.
Take action
Your first steps
1Speak to a family lawyer first. They can explain your options and how the home is treated in your situation.
2Get an estimate of what the home is worth, and the balance and penalty on your mortgage.
3Gather your income proof, ID, tax bill, mortgage statement and the separation agreement or a draft.
4Start the intake so a broker can check whether you may qualify alone and compare lenders.
5Review the written costs and terms, and have your lawyer handle the title transfer and mortgage documents.
The intake
What your application will ask
Your online application goes one topic at a time and saves every answer and document as you go, so you can stop and come back. It never runs a credit check, and a licensed mortgage professional reviews it and follows up.
For spousal buyout borrowers
What is the home worth, where is it, and what is the balance, rate and renewal date of the current mortgage?
What is the amount you expect to pay to buy out the other person, and is the agreement signed, drafted or still being discussed?
What is your income, including any support you receive or pay, and your monthly debts?
Do you have a family lawyer, and is there a timeline you are working to?
Plus the basics everyone answers 13
Your full name, email, mobile number and the best time to call.
The city you live in, and whether you are a Canadian citizen, permanent resident, or other status.
Are you applying alone or with someone else? If with someone, their name and how you are related.
Your goal: buy, refinance, renew, take out equity, or consolidate debt?
The property type (house, condo, multi-unit) and the city it is in.
Will you live in it, rent it out, or both?
The purchase price or estimated value, and your target closing or renewal date.
Your down payment or available equity, and where it comes from (savings, RRSP/FHSA, a gift, sale of another property).
Your approximate yearly household income before tax.
Your monthly debt payments: car loans, credit cards, lines of credit, student loans, support payments.
Your own estimate of your credit score: excellent, good, fair, poor, or not sure.
In the last 7 years, any bankruptcy, consumer proposal, collections, or missed mortgage payments?
May the broker contact you? (A credit check is only ever run later, with your separate written consent.)
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Answers
Questions people ask
Can I keep the house after a separation?
Some people can, when they qualify to take over the mortgage on their own and can pay out the other person. A lawyer can explain your rights, and a broker can check the financing.
Do I need a lawyer?
Yes. Get independent legal advice on your agreement and on the transfer of title. A broker cannot give legal advice, and each person should have their own lawyer.
Can I remove my former partner from the mortgage?
Usually only by refinancing or by the lender agreeing to a release, since the lender approves who is responsible for the debt. The title is changed separately through a lawyer.
How do lenders treat support payments?
Policies differ. Some lenders count support you receive when it is documented, and most count support you pay as a debt. A broker can check this before you apply.
What does it cost?
Possibly a penalty to break the old mortgage, an appraisal, legal fees and lender and broker fees. Ask for every cost in writing.
Does starting the intake affect my credit?
No. It is only questions. A credit check, if needed, comes later and only with your permission.
General information, not mortgage, legal or tax advice. Lender rules change and every application is reviewed on its own facts. Your application and documents are stored privately and go only to a licensed mortgage professional at Top Mortgages Inc; they are never sold, and no credit check is run without your separate written consent.