Spousal buyout completed without selling the family home

The scenario

Consider a homeowner in the Halton region who, following a separation, wants to remain in the matrimonial home and buy out their former partner's share of the equity.

By the time a homeowner in this position reaches out, the loss of one household income has often put a conventional buyout out of reach on standard guidelines.

Why the banks say no

Traditional lenders decline applications like this because the debt servicing exceeds standard guidelines once one household income is removed from the picture.

What we do

In a situation like this, we would arrange an alternative mortgage refinance that provides the funds for the buyout, which in a file like this can be in the range of $200,000 to $215,000, while keeping the remaining spouse in the home.

The outcome

The property is transferred and the buyout is completed without the home being sold.

The exit strategy

The plan is to refinance with a traditional lender once income and credit support a conventional application.

Facing something similar? Learn more about refinancing options, or home equity loans.

This is an illustrative example based on the types of spousal buyout situations we regularly help with. It does not depict a specific client, and the names, location, and figures are representative rather than actual. Individual results vary and are subject to lender approval.