Separation Mortgages

How to manage home ownership after a separation.



Breaking up is tough — finding a mortgage once you’re separated doesn’t need to be.


At Thrive Mortgage Co we can’t give you relationship advice, but we can help you get your home financing on track.

 

Regardless of whether you are in a common-law relationship or married, having a plan for home ownership after separation can significantly simplify the process.

 

We can help you to refinance your marital home

The marital home is, in many cases, owned jointly by both partners. It’s likely that the home will be the most valuable asset that needs to be dealt with after a separation, especially in areas with high property values.

 

Selling the property and splitting the sale price might seem like the most straightforward option, but it may not be the best for you. It may even be a good idea to speak to a solicitor before moving forward with any decision related to the family home.

 

Taking ownership

If you’ve decided to buy out your partner and take sole ownership of the property, the Thrive Mortgage Team can help.

 

We can help to support your sole ownership transition with a separation mortgage. You will be able to buy out your partner, retain the value you’ve built in the property, and keep some stability for you and your family.

 

Click here to begin, or take a look below at our guide to home financing for separation and divorce.


Home Financing After Separation Guide / FAQ:

  • Should I have a separation agreement?

    Yes.

     

    Lenders will need a separation agreement to establish whether any alimony payments need to be made. These details will be needed in understanding the affordability of any mortgage being offered. If no alimony or support is payable and assets do not need to be divided, it is possible to seek an exception with a statutory declaration, which needs to be signed with a lawyer.


  • Do I need to have executed the separation agreement?

    No. You can provide a separation agreement that has been accepted but not yet completed. However, a condition of the sale will be that the separation agreements terms are executed before the closing date.

  • Can I apply alone?

    Yes, just get in touch with us, and we can help you to identify how much you are able to qualify for. If you are expecting to receive child support or alimony payments, these can be counted as qualifying income. Conversely, any outgoing child support or alimony will also need to be considered when applying. 

  • Does my divorce need to be finalized before refinancing?

    No. In Canada, you are required to have a 12 month separation period prior to being able to apply for divorce. You can apply for a mortgage during this separation period. 

  • What documentation is needed to demonstrate the division of assets?

    Your separation agreement should outline any division of assets. Any assets being used for a down payment must have three months of supporting bank statements. Any assets being received as part of the separation agreement must be confirmed as being deposited in your account.

  • Should my partner and I have different brokers?

    No. We understand that this can be a potentially tricky time to communicate with your ex. By handling both sides of the financing, we can remove the need for additional complications of dealing with multiple parties while also maintaining privacy. 

     

    When managing both sides of the sale, we can ensure that closing dates line up and happen on time.

     

    If one or both of you should need bridge financing, we can make sure that a solution is available with the marital home as collateral. It can be challenging to negotiate a large bridge loan with two different lenders.

     

    We will always ensure that your ex has no visibility or knowledge of the details of your financing agreement and vice versa.

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