Divorce and Mortgage can be a nasty experience for you and your family.
The emotion, questions, knowns, and unknowns are not easy.
We work with clients to obtain the best possible mortgage based on the circumstances at hand.
We’ve seen this go a few different ways!
i) Bill and Mary agree to sell their matrimonial home for $500K which has an existing mortgage of $200K. They’ll each net $150K. Bill and Mary will use this sum to fund the deposit and down-payment of their new homes.
ii) Bill and Mary agree that Mary will remain in the home with the children, and Bill will be removed from title. Mary arranges a new 1st mortgage to remove Bill from title and pay him his equity share.
Unfortunately, obtaining a mortgage for a divorce may not be as simple as the mortgage obtained when you bought your matrimonial home.
For instance, the spouse that remains on title may not have sufficient income to service the mortgage. Alternatively, it may be a credit or debt service issue.
Not to worry.
We have relationships with mortgage lenders flexible income, credit, and debt service requirements. In addition, we can help you with a mortgage approval if your property is located in a rural location. Also, we work with lenders who can approve you simply based on home equity. Self-employed showing less income than you truly earn, we have a program for that. You have mortgage options!
You should know that we also surround ourselves with professional partners who may be able to bring additional value to your situation.
Click here to visit a Divorce Fact Sheet which was created by the Department of Justice Canada.
You’ll want to keep in mind that a mortgage lender will require a formal separation agreement or divorce decree, in addition to the other mortgage documents we will help you prepare.
We will be happy to provide you with additional information and support when you’re ready.
We love helping clients with their mortgage and divorce needs in Ontario and British Columbia!