One income instead of two
The mortgage was approved on two incomes. Now one person has to carry it, and the bank's debt ratios no longer work.
A spousal buyout mortgage lets one partner stay in the family home and pay the other their share of the equity, without selling. We arrange buyouts through the standard insured program and, when that program says no, through alternative and private lenders across Ontario.
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When a relationship ends, the family home is usually the largest asset a couple shares, and it is often where most of their savings live. Selling is one way to divide it. A spousal buyout mortgage is the other: the partner who wants to stay takes out a new mortgage large enough to pay off the existing one and pay the departing partner their agreed share of the equity. Title then moves into the staying partner's name alone.
For many families, especially those with children in local schools, keeping the home brings stability at a time when very little else feels stable. It also avoids real estate commissions, moving costs, and the pressure of selling on someone else's timeline.
For married couples, Ontario's Family Law Act gives the matrimonial home special treatment. Both spouses generally have an equal right to live in it regardless of whose name is on title, and neither spouse can mortgage it without the other's consent or a court order. That is why a signed separation agreement, or at minimum clear written consent, sits at the centre of almost every spousal buyout.
Common law couples are treated differently under Ontario property law, so the numbers in your buyout may be worked out another way. Your family lawyer settles what each person is owed. Our job is to find the financing that makes that agreement possible.
Most people only hear about the insured program through their bank. It is a good option when you fit it. When you don't, there is still a path.
Backed by mortgage default insurance, this program treats the buyout much like a purchase, so it can lend up to 95% of the home's value.
B lenders, private lenders and mortgage investment corporations focus on the equity in the home and the full picture of your finances.
These are the situations we see most often from people who were told a buyout was not possible.
The mortgage was approved on two incomes. Now one person has to carry it, and the bank's debt ratios no longer work.
Missed payments, maxed cards, or collections during the breakup are common. Alternative lenders look past a score that dropped for reasons that are now behind you.
Business owners who write off expenses often show less income on paper than they really earn. That gap matters more when you qualify alone.
Some lenders count child or spousal support you receive, and some will not. Knowing which lender does can change the whole outcome.
Lines of credit, car loans and credit cards in both names often need to be paid out so each person can move on cleanly.
Siblings, friends, or a parent on title. The insured program rarely helps here, but an equity based refinance often can.
There is rarely one right answer. We compare these approaches across our lender network and show you the cost of each before you decide.
One new first mortgage replaces the old one and funds the buyout. Often the cleanest option when you have solid equity but don't meet bank rules. Learn more about B lenders.
If your current mortgage has a low rate or a large penalty to break, a second mortgage behind it can fund just the buyout amount, provided your current lender allows it.
A private mortgage for one or two years can close the buyout quickly while you rebuild credit or income history, then refinance to a lower rate lender.
Fold the buyout and your high interest balances into one payment. See the impact with our debt consolidation savings calculator.
We learn what you own, what you owe, and what you hope to keep. Nothing is shared with your former partner.
We estimate your maximum buyout amount across bank, B and private lenders so your lawyer has real numbers.
Your separation agreement is finalized and the lender orders a full appraisal of the home.
The lawyers pay out the old mortgage, pay your former partner, and transfer title into your name.
Getting these together early keeps your buyout moving. Don't worry if something is missing; we'll tell you what matters most for your situation.
Settlements stall when the buyout number can't be financed. We give your clients a fast, realistic read on what they can borrow, including options beyond the bank, so negotiations rest on numbers that will actually close.
We keep you informed at each stage and work directly with the closing lawyer on payout and transfer. Referrals are welcome, and a quick call is often enough for us to tell you whether a buyout is realistic.
Want a rough sense of your equity first? Try our home equity calculator, or read about bad credit mortgages if your score has dropped.
It is a new mortgage that lets one partner keep the home after separation by paying off the existing mortgage and paying the other partner their agreed share of the equity. Once it closes, the staying partner owns the home alone.
The standard insured program requires a signed, final separation agreement that sets out the buyout amount. Some alternative and private lenders can begin with a draft agreement and confirmation from your lawyer, but both owners on title will need to consent, and a final agreement is still expected before or at closing.
Often, yes. Bank lenders require you to qualify alone under standard debt ratios and the stress test. Alternative and private lenders place more weight on the equity in the home, which can make a buyout possible even when your income alone falls short of bank rules.
Under the insured program, up to 95% of the appraised value, subject to qualifying and insured mortgage limits. Alternative lenders usually lend a lower share of the value, commonly up to around 80%, and private lenders vary. The amount you actually need depends on your existing mortgage and the equity share set out in your agreement.
Under the insured program, only joint debts named in the separation agreement may be paid, and rules differ between insurers and lenders. Alternative lenders are generally more flexible and can often include joint and personal debts in the same refinance.
Yes. Common law partners can use a buyout mortgage, though Ontario's property division rules for unmarried couples differ, so your lawyer will confirm the amount owed. For siblings, friends or other joint owners, an equity based refinance through an alternative or private lender is usually the most practical route.
Alternative lender approvals can come in as little as 24 hours once we have your documents. Closing usually depends on the appraisal and on both lawyers completing the payout and title transfer, which commonly takes two to four weeks.
No. Your application and financial details are confidential. Your former partner's involvement is limited to what the lawyers need for the transfer of title, such as signing the documents that remove them from ownership.
A free, confidential conversation is the best first step. We'll tell you what you can likely borrow and which lenders fit your situation, with no obligation.
All mortgage products are subject to lender approval, property appraisal and credit review. LendToday does not provide legal advice; the division of property on separation should be settled with a family lawyer.