Are you going through a separation or divorce? You might not be aware that there are mortgage products designed to allow you to refinance up to 95% of your property in order to buyout your ex-spouse. To qualify for this program, you must have good credit and you must be able to afford the mortgage on your income alone. Please note the equalization payment can only go to the departing spouse and must be specified on the agreement.
Is a separation agreement required? Yes, in order to qualify you will need to provide the lender will a copy of the signed separation agreement.
Can we include debt consolidation in the new mortgage? Yes, consolidation of matrimonial debts is permitted provided they are listed as ‘joint’ on the credit bureau and as a payout on the separation agreement.
Do we both need to be on title? Yes, both you and your ex-spouse or partner must currently be on title to the property.
What is the maximum LTV? The maximum LTV is the lesser of 95% or the remaining mortgage + equity required to buy out other owner.
Will an appraisal be required? Yes. With this type of a mortgage a full appraisal of the property is necessary.
If you have any questions about the Spousal Buyout program or any other mortgage questions, please don’t hesitate to contact us. We’re here to help! Call us at (604) 313-3199 or email email@example.com