💔 Separation & Divorce Mortgage Solutions in Toronto & the GTA

One of the most common solutions in Canada is the Spousal Buyout Program. This allows one spouse to refinance the home and buy out the other’s interest in the property.

• Requires a legal separation agreement outlining asset division.
  

• Allows up to 95% loan-to-value (LTV) (only 5% down/equity required to keep the home).
  

• The buyout funds can only be used to pay out the spouse (not other debts).
  

• All debts and support obligations must be disclosed during approval.
  

💡 This program can make it possible to keep the family home without selling, even with minimal equity.

Lenders require specific documentation when dealing with separation or divorce mortgages. Common items include:

• Separation agreement or divorce decree (signed and legally binding).
  

• Property appraisal (to establish current market value for buyouts).
  

• Income verification (T4s, pay stubs, NOAs, or business statements if self-employed).
  

• Support obligations (child/spousal support payments are factored into affordability).
  

• Credit report (to determine qualification and rates).
  

👉 The earlier you prepare your documents, the smoother the process will be.

If one spouse keeps the home, refinancing is often required to:

• Pay out the other spouse’s equity.
  

• Restructure the mortgage into one name only.
  

• Adjust monthly payments to reflect a single income.
  

We’ll work with you to determine the best lender and product, balancing interest rates with cash flow flexibility.

If selling the marital home is the chosen route, both spouses may be looking to purchase new homes separately. Key considerations include:

• Down payment sources: Sale proceeds, savings, or gifted funds.
  

• Income qualification: Support income may count toward your affordability (varies by lender).
  

• Credit history: If debts were shared, credit scores may need rebuilding.
  

• Stress test rules: You’ll still need to qualify under the same federal guidelines.
  

Child and spousal support can significantly affect mortgage qualification:

• If you pay support: The payments are treated as a liability and reduce borrowing power.
  

• If you receive support: Some lenders will count it as income if it’s court-ordered and has a history of payments.
  

👉 This is why lender selection is crucial — some are far more flexible with support income than others.

Separation can cause financial strain. Missed payments, joint debts, or high credit utilization may lower scores at the worst possible time. Options include:

• Debt consolidation through refinancing.
  

• Alternative or B-lenders for clients with bruised credit.
  

• Private lending solutions for short-term relief while rebuilding credit.
  

💡 We’ll create a roadmap — from immediate solutions to long-term financial recovery.

• Banks often struggle with separation files because they have rigid policies. A broker can:
  
  • Access spousal buyout programs across multiple lenders.
    
  • Work with lenders that count support income toward qualification.
    
  • Provide options even if your credit was impacted by the separation.
    
  • Offer confidential advice tailored to your financial situation.

• ✅ Confidential, Compassionate Support: We understand this is more than just numbers.
  

• ✅ Spousal Buyout Expertise: Keep the family home with as little as 5% equity.
  

• ✅ Flexible Lender Network: Banks, B-lenders, and private financing options.
  

• ✅ Local GTA Market Knowledge: Toronto, Mississauga, Oakville, Burlington, Hamilton.
  

• ✅ Step-by-Step Guidance: From appraisal to final approval, we’ll walk you through the process.