Separation & Divorce Mortgages

Navigating home ownership after separation requires clear, actionable steps. This guide combines practical advice and resources to support your journey. For personalized assistance, remember we're just an email away.

1. Assess Your Living Situation Post-Separation

- Evaluate Your Options: Consider whether to stay in your current home or move. Here’s a helpful starting point for you.

- Discuss with Your Ex-Partner: Clarify intentions and reach a mutual agreement.

Determine the current home value. Consider getting a Qualified CMA from a divorce-specialized realtor or appraiser.

Summarize all debts as of the agreed-upon date.
Confirm any specific repayments for initial investments or downpayments.
Decide who will cover property, mortgage, and home-related expenses until the sale or buyout is complete.

2. Keep the Property and Refinance:

- List Potential New Properties: Assess your budget, using budget worksheets and our dedicated calculators here.

- Get Pre-Approved: Ensure you're pre-approved before house hunting.

- Legal Agreement with Your Ex-Partner: Have a written and notarized agreement.

- Hire a Real Estate Agent: Get a current market analysis. Consider divorce-certified realtors for specialized assistance.

Need a recommendation? Get in touch with our team.

- Legal Arrangements for Existing Residence: If keeping the residence, decide who remains on the title and complete necessary legal arrangements.

- Complete Buyout: Ensure full completion of the buyout process if receiving proceeds.

- Sale Agreement: Confirm if there’s an existing sale in place.

3. Staying and Refinancing: What You Need to Know

Complete Buyout Details: Refer to the steps in Section 1 regarding your buyout.
Legal Documentation: Complete any necessary legal documentation for the buyout.
Apply for a Mortgage: Consider using a co-signor or using some of the proceeds or savings to pay down the mortgage for qualification.

4. Explore Solutions with Flow Mortgage Co

Discuss Financing Options: Inquire about financing or refinancing options that allow access to up to 95% of your home's equity.
Consider Longer Amortization: A 35-year amortization can improve affordability on a single income.
Support Payments and Qualification: Understand how support payments can impact your qualification scenarios.
Inquire About Financing Options: Explore both equity and non-income financing options.

5. Finalize Your Decision and Take Action

Make a Final Decision: Based on your research and discussions, decide on your living situation.
Legal and Financial Steps: Implement your decision through necessary legal and financial steps.
Document Agreements: Ensure all agreements with your ex-partner are legally documented.

By methodically following these steps, you can confidently navigate through the decision-making process and establish your individual property ownership post-separation.

Feeling overwhelmed with your home ownership decisions post-separation? We get it, and we're here to help. Our team has been there, guiding many through these exact challenges. Reach out for a chat — we're ready to support you with personalized advice and practical solutions. Let's tackle this together.

FAQs for Home Financing After Separation

Do I need to have executed the separation agreement?

No, an accepted but not yet completed agreement is acceptable. However, the agreement must be executed before the closing date as a condition of sale.

Should I have a separation agreement?

Yes, lenders will need a separation agreement to understand the affordability of a mortgage. If there is no alimony or support and assets don't need to be divided, a statutory declaration signed by a lawyer can be used as an exception.

Should my partner and I have different brokers?

No, we can handle both sides of the financing to remove communication difficulties with your ex and maintain privacy. We ensure that closing dates align and that bridge financing is available if needed. Your ex will have no knowledge of the details of your financing agreement and vice versa.

Does my divorce need to be finalized before refinancing?

No, in Canada, a 12-month separation period is required before applying for divorce. You can apply for a mortgage during this period.

Can I apply alone?

Yes, we can help you determine your qualification amount. Child support and alimony can be considered as qualifying income, but outgoing payments must also be considered.

What documentation is needed to demonstrate the division of assets?

Your separation agreement should outline asset division. Three months of bank statements are needed for assets used as a down payment. Deposits of assets received as part of the agreement must be confirmed.