Spousal Buyout Mortgage?
If you happen to be going through, or considering a divorce or separation, you might not be aware that there are mortgage products designed to allow you to refinance your property in order to buyout your ex-spouse.
For most couples, their property is their largest asset and where the majority of their equity has been saved. In the case of a separation, it is possible to structure a new mortgage that allows you to purchase the property from your ex-spouse for up to 95% of the property’s value. Alternatively, if your ex-spouse wants to keep the property, they can buy you out using the same program.
Here are some common questions about the spousal buyout program:
- Is a finalized separation agreement required?
- Can the net proceeds be used for home renovations or to pay out loans?
- What is the maximum amount that can be withdrawn?
- What is the maximum permitted LTV?
- Do all parties have to be on title?
- Do the parties have to be a married or common law couple?
- Is a full appraisal required?
If you have any questions about how a spousal buyout mortgage works, contact Amy Wilson for all your mortgage needs. Be assured that our communication will be held in the strictest of confidence.
Thank-you Michael from DLC for this article