When a relationship ends and one person keeps the home, the mortgage has to be refinanced. Coming off title does not remove you from the mortgage. Only a new mortgage does that.
Up to 95%Of property value
Signed agreementRequired by lenders
Support paymentsCount both ways
Where you might be right now
- You are separating or divorcing and keeping the matrimonial home.
- You need to remove a former partner from the mortgage, not only from title.
- You need more than 80% of the property's value to complete the buyout.
- Support payments are involved and you need to know how lenders treat them.
- You are the departing party and need to know when your name actually comes off.
What decides a buyout file
- A standard refinance caps at 80% of value. Spousal buyout programs allow up to 95% where the funds purchase the other party's interest in the matrimonial home.
- The proceeds must go to the departing spouse and to joint debts identified in the agreement, not to general spending.
- Lenders need a signed, finalised separation agreement setting out the division of property and any support obligations.
- Support payments count as income for the recipient and as a liability for the payor. Both affect qualifying.
- Start the mortgage conversation while the agreement is being drafted, not after it is signed.
- We are mortgage agents and not lawyers. We work from the agreement your lawyer produces rather than advising on it.
Documents to gather
- Signed and finalised separation agreement
- Current mortgage statement and property tax bill
- Income confirmation for the person keeping the home
- Confirmation of any spousal or child support paid or received
- A current appraisal, which lenders will normally require on these files
- Government photo ID
How a buyout runs
- 01 Get the agreement finalised firstLenders will not proceed on a draft. This is the single most common delay on these files.
- 02 Confirm what one income supportsThe mortgage now has to qualify on one applicant, adjusted for support paid or received.
- 03 Appraisal and buyout calculationThe buyout figure comes from the agreed value in the agreement and the current mortgage balance.
- 04 Close and releaseYour lawyer pays out the former partner, discharges the old mortgage and registers the new one.
Agreement being drafted?
Start the application, or call 647-505-1096 and talk it through first.
Questions we get asked
- How much can I borrow for a spousal buyout?
- Spousal buyout programs allow up to 95% of the property's value where the funds are used to purchase the other party's interest. A standard refinance is limited to 80%.
- Do I need the separation agreement before applying?
- You need it signed and finalised before the mortgage can complete. We can start the work on a draft, but no lender will fund without the executed agreement.
- Am I off the mortgage once I am off title?
- No. Those are separate. Until the mortgage is refinanced or discharged, you remain liable to the lender regardless of what the title says or what the agreement says.
- How is support treated?
- Support received can often count as income with sufficient evidence and continuance. Support paid is treated as a liability and reduces what you qualify for. How lenders apply this varies.