LEARN WHAT COMES NEXT FOR YOUR HOME
Whether you are going through a divorce or ending
a common law relationship, separation is never easy…
especially when most individuals feel as though they
have no choice but to sell their home and split the
equity. Fortunately, there is another way.
The Spousal Buy-Out Program is backed by all three
of Canada’s mortgage insurance providers (Canada
Mortgage and Housing Corporation, Genworth Financial
and Canada Guaranty) and was designed to allow one
party to refinance the shared home up to 95 percent of
its appraised value!
With your needs in mind, this program will not only allow
you to bring on a cosigner to assist with the buyout, but
it can also be used to pay additional debts noted in the
separation agreement. However, it is important to note
that both you and your ex-partner must currently be on
the deed to the property in order to qualify.
If you are separating from your spouse or partner and
would really like to hold onto your shared home, there
are a few things you will need:
An Appraisal
This may have been obtained with the Equalization of
Assets, but some lenders require these to be ordered by
a third party. It must also have been produced within 90
days (less with some lenders) to ensure accuracy.
A Signed Separation Agreement
The lender must be provided a signed copy of the
separation agreement, which outlines the allocation
of assets.
An Agreement of Purchase and Sale
A standard agreement of sale indicating the new
ownership.
An Employment Letter or Recent Pay Stub
This is required so the lender can verify your ability to
manage your mortgage payments.
Debt Payout List
This is a one-time optional feature that allows you to
buy out the other owner’s share of equity and/or to
pay off joint debt as explicitly noted in the separation
agreement.
