One part of your life is changing. Your home doesn't have to add to the stress.

Often, yes. A spousal buyout mortgage lets you buy out your ex's equity and take over the mortgage in your name alone. Under the insured spousal buyout program — offered by CMHC, Sagen and Canada Guaranty — this can be done at up to 95% LTV, so you may not need the 20% equity a conventional refinance requires. Qualification still depends on your income, credit, and the property. When it works, the home stays yours and your ex is removed from title and mortgage.

The insured spousal buyout program — offered by all three mortgage default insurers (CMHC, Sagen and Canada Guaranty) — allows insured financing at up to 95% of the home's appraised value for divorce and separation buyouts, compared with the 80% LTV cap on standard refinancing. The property must be owner-occupied and the buyout must stem from a legal separation or divorce. With CMHC specifically, the proceeds can only be used to buy out the other spouse's share, not to consolidate other debts. This program is widely underused and can help you avoid a forced sale.

The joint mortgage stays active until it is refinanced or the property is sold. Both spouses remain legally liable regardless of what a separation agreement says — the lender is not bound by private agreements. Missed payments on a joint mortgage affect both credit scores. To remove one spouse, the remaining spouse must refinance in their own name and qualify under current lending standards.

Many people can qualify on single income — but it requires assessment. The OSFI stress test applies at your contract rate plus 2% (minimum 5.25%). Regular spousal support and child support from a separation agreement counts as income with most lenders. If A-lender qualification falls short, some B-lenders apply more flexible income criteria (this varies by lender and file). A private mortgage can provide a bridge while you build toward institutional qualification.

Yes — with most lenders, documented spousal support and child support payments count as qualifying income. You typically need a signed separation agreement or court order and a 2–3 month payment history. Some lenders gross up the income amount. A broker ensures this income is presented correctly and maximizes what you qualify for.

With A-lender or B-lender financing, often 2–4 weeks from application to funding. If you have a court-ordered deadline, a private bridge mortgage can often fund in as little as 5–10 business days once your documentation is complete. The total process — including legal transfer of title and mortgage registration — commonly runs 3–5 weeks once all documents are in, though timelines vary by lender and file.

Credit drops during divorce are common. Some B-lenders consider scores from around 500, and private lenders weigh property equity more heavily than credit score — but criteria vary by lender. A broker can structure a short-term solution at your current credit level, with a plan aimed at moving back toward A-lender rates over roughly 12–18 months as your credit recovers. Your credit situation is a starting point, not necessarily a barrier.

Yes. Private lenders can fund against the matrimonial home before the divorce is finalized — secured by the property equity. This is common when court-ordered deadlines are in play or when one spouse needs to access equity for legal fees. Typical terms are 6–12 months, with refinancing to institutional financing once the divorce is settled.

Property transfers between spouses related to a divorce or separation may qualify for a land transfer tax exemption under Ontario law — provided the transfer is structured correctly under the Ontario Family Law Act or court order. Proper legal coordination is required. We work alongside your family law lawyer and real estate lawyer to ensure the structure is tax-efficient.

Typical requirements: signed separation agreement or divorce order, current appraisal (we arrange), 2 recent pay stubs or 2 years NOA if self-employed, government ID, current mortgage statement, property tax statement, and proof of spousal or child support income if applicable. A broker coordinates all documentation with your lender and legal team.

Typical costs: (1) Legal fees — $1,500–$3,000+ for independent counsel and title transfer, (2) Appraisal — $350–$600, (3) Mortgage penalty if breaking a closed mortgage — varies by lender and term remaining, (4) CMHC mortgage insurance premium if refinancing above 80% LTV, (5) Broker fee if using B-lender or private financing. Land transfer tax may be exempt with proper structuring. We itemize all costs before you proceed.

Under the Ontario Family Law Act, the matrimonial home has special status regardless of whose name is on title. Both spouses have equal possession rights, and neither can sell, mortgage, or transfer it without the other's written consent — or a court order. This means any mortgage restructuring during divorce requires both parties' involvement or a court-directed process.

Yes. The CRA's relationship breakdown exception lets you use the Home Buyers' Plan (HBP) as if you were a first-time buyer if you've lived separate and apart from your spouse or common-law partner for at least 90 consecutive days. You must be separated at the time of the withdrawal, or the separation must have started in the current calendar year or the four preceding years, and you generally need to dispose of the shared home within two years of the withdrawal (waived if you're buying out your ex's share). You can withdraw up to $60,000 tax-free from your RRSP.

No. The First Home Savings Account's qualifying-withdrawal rules, unlike the HBP, do not include a relationship breakdown exception. To make a tax-free FHSA withdrawal, you still need to meet the standard first-time buyer test — not having owned and lived in a home you or your spouse owned in the current year or the previous four years. The HBP's separation exception does not carry over to the FHSA.

No. If you've ever owned an eligible home anywhere in the world, you permanently lose eligibility for Ontario's first-time buyer Land Transfer Tax Refund (a maximum of $4,000, which fully covers the tax on homes priced up to about $368,000) — separation or divorce does not reset this. This is a different rule than the CRA's HBP relationship breakdown exception, which does allow you to requalify for RRSP withdrawal purposes.

A release of covenant is a formal document from your lender removing a departing spouse's legal liability for a mortgage. Until it's issued, both names stay legally responsible for the full debt — even if a separation agreement says otherwise — and that full balance counts against the remaining spouse's debt-to-income ratio on future borrowing. It's typically issued when the mortgage is refinanced solely into one spouse's name.