Going Through a Divorce or Separation?

Rita Cousins Senior Mortgage Advisor • November 13, 2020

Learn what comes next
for your home

Whether you are going through a divorce or ending
a common law relationship, separation is never easy… especially when most individuals feel as though they have no choice but to sell their home and split the equity. Fortunately, there is another way.


The Spousal Buy-Out Program is backed by all three of Canada’s mortgage insurance providers (Canada Mortgage and Housing Corporation, Genworth Financial and Canada Guaranty) and was designed to allow one party to refinance the shared home up to 95 percent of its appraised value!


With your needs in mind, this program will not only allow you to bring on a cosigner to assist with the buyout, but it can also be used to pay additional debts noted in the separation agreement. However, it is important to note that both you and your ex-partner must currently be on the deed to the property in order to qualify.

If you are separating from your spouse or partner and would really like to hold onto your shared home, there are a few things you will need:

An Appraisal

This may have been obtained with the Equalization of Assets, but some lenders require these to be ordered by a third party. It must also have been produced within 90 days (less with some lenders) to ensure accuracy.

A SIGNED SEPARATION AGREEMENT

The lender must be provided a signed copy of the separation agreement, which outlines the allocation
of assets

AN AGREEMENT OF PURCHASE AND SALE

A standard agreement of sale indicating the new ownership.

EMPLOYMENT LETTER OR RECENT PAY STUB

This is required so the lender can verify your ability to manage your mortgage payments

DEBT PAYOUT LIST

This is a one-time optional feature that allows you to buy out the other owner’s share of equity and/or to pay off joint debt as explicitly noted in the separation agreement.

If you are going through a separation, contact me today to learn more about the spousal buyout program and how it could help you!

By Andy Schildhorn October 2, 2025
The Township of Langley Traffic Cameras for up to date traffic information. Click here
By Matthew Claxton | Langley Advance Times October 1, 2025
Langley's growth may slow down as a result of changing immigration rules, but it is still expected to have more than 280,000 residents by 2051, according to recent Metro Vancouver growth estimates. The report, by the Metro Vancouver Regional District's regional planning committee, was released earlier this month and has three growth scenarios – low, medium, and high.  As of 2024, Metro Vancouver estimated Langley City had 35,316 residents, and the Township had 162,926, for a total of 198,242. 👉 More Details Here
By BCREA September 30, 2025
On September 14, 2025, the federal government launched the Build Canada Homes agency, first announced in May’s Speech from the Throne. The agency’s goals largely centre on non-market affordable housing, with a mandate to grow the proportion of housing that is for low- and middle-income households; create the conditions for high-capacity non-market housing; and generate long-term, predictable demand for factory-built housing. The agency also intends to focus on cost-efficient construction methods, including factory-built, modular, and mass timber housing, and will prioritize using Canadian building materials such as lumber and aluminum. 👉 More Details Here
More Posts