Divorce and your mortgage options
Going through a divorce and worried your ex might get your house? Not sure how to keep the house and afford the payments? We can help you with a new gameplan!
Keep your kids in the same school and house they love
You can "buyout" your spouse the NO EXTRA CASH
PAY NO REALTOR FEES
NO downpayments required
Had a few mortgage clients lately being told wrong information from their banks and mortgage brokers and then being told to sell their homes. THIS IS NOT TRUE and selling doesn’t have to be the option.
In 2013, the government changed the guidelines for lenders in Canada to allow a maximum refinance of only 80% of the value of your home – so how does this affect clients who are being divorced and splitting their home?
This is where inexperienced brokers and banks are incorrect in their advice to divorcing couples specifically. If they don’t understand your FULL situation, you will be getting their “assumed” version of mortgage qualification and think you need a "refinance". Not necessarily the case.
There are three ways to split the equity in your house when going through a divorce:
1) You buy the house from your ex-spouse 2) Your ex-spouse buys the house from you 3) You sell the house outright and split the proceeds
We have a exclusive program and exemption from the government insurers to treat these divorce mortgages and "buyouts" as purchases; and thereby allowing us to approve divorce mortgage clients under the same requirements as if they were purchasing the home from the previous spouse. AWESOME!~ and you don’t have to pay property transfer tax or Realtor fees like a new purchase either!
The special program, we are able to use the home equity, they receive in the separation, as the down payment. As a result of this unique program, for divorce mortgages in Canada we are able to use as little as 5% down payment in the form of home equity for the home buyout, and get a 95% of the value of your home for the buyout! This can save you having to SELL your house to access the equity!!!
If you want to keep the house while going through a divorce, here are TOP 3 things must follow:
Keep paying the mortgage and any other bills that need to be paid every month. Even if your ex-spouse decides not to pay this will only hurt your chances of buying the house from your ex-spouse. A mortgage in arrears can mean a decline for a new mortgage.
Joint debts, separate all the ones that you can and close any joint credit cards or lines of credit so that they can’t be used without your knowledge. If there are joint balances, CONTACT your lender/creditor right away to advise of your situation. If you are not sure, get a copy of your credit report from Equifax. It will list your cards.
Establish your own credit and bank accounts.
I am a FREE resource, fully licensed mortgage expert that specializes in couples going through a separation and divorce. Please call me for a free one-on-one consultation to help you plan your next steps.