Separation Mortgages

How to manage home ownership after a separation.



Ending a relationship is challenging, securing a mortgage after separation doesn’t have to be.


At Thrive Mortgage Co., we may not provide relationship advice, but we can help ensure your home financing stays on track during a separation.

Whether you are in a common-law relationship or married, having a clear plan for home ownership post-separation can make the process far simpler and less stressful.


Refinancing the Marital Home
In many cases, the marital home is jointly owned and represents one of the most valuable assets to manage after a separation, particularly in high-value real estate markets. While selling the property and splitting the proceeds may seem straightforward, it isn’t always the best option. Consulting a solicitor before making decisions about the family home is often a wise step.


Taking Sole Ownership
If you choose to buy out your partner and take full ownership of the property, the Thrive Mortgage Team can guide you through the process. With a separation mortgage, you can buy out your partner, retain the equity you’ve built in the home, and maintain stability for yourself and your family.


Home Financing After Separation Guide / FAQ:

  • Should I have a separation agreement?

    Yes.

     

    Lenders will need a separation agreement to establish whether any alimony payments need to be made. These details will be needed in understanding the affordability of any mortgage being offered. If no alimony or support is payable and assets do not need to be divided, it is possible to seek an exception with a statutory declaration, which needs to be signed with a lawyer.


  • Do I need to have executed the separation agreement?

    No. You can provide a separation agreement that has been accepted but not yet completed. However, a condition of the sale will be that the separation agreements terms are executed before the closing date.

  • Can I apply alone?

    Yes, just get in touch with us, and we can help you to identify how much you are able to qualify for. If you are expecting to receive child support or alimony payments, these can be counted as qualifying income. Conversely, any outgoing child support or alimony will also need to be considered when applying. 

  • Does my divorce need to be finalized before refinancing?

    No. In Canada, you are required to have a 12 month separation period prior to being able to apply for divorce. You can apply for a mortgage during this separation period. 

  • What documentation is needed to demonstrate the division of assets?

    Your separation agreement should outline any division of assets. Any assets being used for a down payment must have three months of supporting bank statements. Any assets being received as part of the separation agreement must be confirmed as being deposited in your account.

  • Should my partner and I have different brokers?

    No. We understand that this can be a potentially tricky time to communicate with your ex. By handling both sides of the financing, we can remove the need for additional complications of dealing with multiple parties while also maintaining privacy. 

     

    When managing both sides of the sale, we can ensure that closing dates line up and happen on time.

     

    If one or both of you should need bridge financing, we can make sure that a solution is available with the marital home as collateral. It can be challenging to negotiate a large bridge loan with two different lenders.

     

    We will always ensure that your ex has no visibility or knowledge of the details of your financing agreement and vice versa.