Trusted mortgage services
Keeping your home after a separation
Buying out your former spouse's share is a big decision at a hard time. We explain your options calmly, work alongside your lawyer or mediator and find a lender that fits your new situation.
- 5-yr fixed
- 4.69%
- 5-yr variable
- 3.70%
Updated Oct 8 · on approved credit · Compare to bank rates
How a spousal buyout works
When a relationship ends, deciding what happens to the home is often one of the hardest parts. If you want to stay, the usual way is to buy out your former spouse's share. That normally means refinancing the home into your own name: the new mortgage pays off the existing one and pays your former spouse their share of the equity, as set out in your separation agreement or a court order.
A standard refinance goes up to 80% of the home's value, and you have to qualify on your own income, including the stress test. Some lenders also offer spousal buyout programs that can lend more than the usual 80%, with mortgage insurance, when there's a signed separation agreement. Programs and limits change, so ask us what's available now. We work alongside your lawyer or mediator, because timing matters: the agreement, the approval and the transfer all have to line up.
What lenders look for
A signed agreement
A signed separation agreement or a court order that says who keeps the home and what the other spouse is paid. Lenders need it before they fund a buyout.
Income in your name
You qualify on your own income. Support you receive can count, depending on the lender, and support you pay is treated as a debt.
Enough equity
The new mortgage has to cover what you owe now, your former spouse's share and the costs, within the lender's limit for your situation.
How it works
From separation agreement to new mortgage
Talk to us early
Before the terms are final, we estimate what you could qualify for on your own, so you negotiate with real numbers.
Compare the options
Taking over the existing mortgage, a standard refinance or a spousal buyout program, including any penalty for breaking your current mortgage.
Apply with the agreement
Once the separation agreement is signed, or a court order is in place, we send it to the lender with your income and support documents.
Complete the transfer
Your lawyer or notary pays out the old mortgage, pays your former spouse their share and registers the home in your name.
Frequently asked questions
You have questions — we have answers!
Spousal Buyout Mortgages in BC
Do I need a separation agreement to buy out my spouse?
In practice, yes. Lenders want a signed separation agreement or a court order before they fund a buyout, because it sets out who keeps the home, what the other spouse is paid and any support. It also matters for property transfer tax. If you are still working out the terms, talk to us early: we can estimate what you would qualify for, so the agreement reflects what is possible.
Can support payments count as income?
Often, depending on the lender. Child or spousal support you receive can usually count as income when it is set out in your separation agreement or a court order and you can show it is being paid, for example with bank statements. Some lenders want to see a history of payments first. Support you pay counts as a debt, which lowers what you can borrow. We look at both sides before the agreement is signed.
Can I take over our existing mortgage instead?
Sometimes. Some lenders let one spouse take over, or assume, the existing mortgage and remove the other borrower, as long as the spouse keeping the home qualifies alone. That keeps your current rate and term and can avoid a prepayment penalty. If you need to borrow more to pay out your former spouse's share, that usually means a refinance, and breaking the mortgage before the term ends may mean a penalty. We check your contract and price both.
How much can I borrow for a spousal buyout?
With a standard refinance, up to 80% of the home's value. If your home is worth $800,000 with $300,000 owing and your agreement gives your former spouse half the equity, that's $250,000, so the new mortgage would be about $550,000 plus costs, within the $640,000 limit, if your income qualifies. Your income often limits the amount more than your equity does. Some lenders' spousal buyout programs can go higher with mortgage insurance, so ask us what's available now.
Is there property transfer tax when the home moves into my name?
There may not be. In BC, a transfer between spouses or former spouses under a written separation agreement or a court order may be exempt from property transfer tax. The exemption has conditions, so confirm with your lawyer or notary before the transfer is registered, and make sure they have the agreement or order they need.
Will I count as a first-time buyer again?
Possibly. After a separation, you may count as a first-time buyer for some programs, even if you owned a home before. That matters most if your former spouse keeps the home and you are buying a place of your own. Each program has its own test and conditions, so ask us which ones you could use before you start looking, and we will work them into your budget.
Today's rates
Our rates vs the banks'
We shop 50+ lenders, so the rate you're offered isn't limited to one bank's rate sheet. Updated Oct 8.
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Our job is to find you a competitive rate and terms that fit. Your rate qualification depends on certain factors, such as credit score and home equity, as per Canadian regulations. Get your details fast — there's no cost and no obligation.
- Current variable mortgage rate
- 3.70%
- Current prime rate
- 4.45%
| Term | Bank posted | Our rates | Action |
|---|---|---|---|
| 6 Months | 7.89% | 4.79% | Get this rate: 6 Months |
| 1 year fixed | 5.49% | 4.64% | Get this rate: 1 year fixed |
| 2 year fixed | 5.44% | 4.44% | Get this rate: 2 year fixed |
| 3 year fixed | 6.05% | 4.54% | Get this rate: 3 year fixed |
| 4 year fixed | 6.01% | 4.39% | Get this rate: 4 year fixed |
| 5 year fixed | 6.19% | 4.69% | Get this rate: 5 year fixed |
| 7 year fixed | 6.41% | 4.79% | Get this rate: 7 year fixed |
| 10 year fixed | 6.81% | 4.79% | Get this rate: 10 year fixed |
| 5 year variable | No bank rate | 3.70% | Get this rate: 5 year variable |
Bank posted rates are the big banks' posted rates published by the Bank of Canada (1, 3 and 5 years) and by Dominion Lending Centres (other terms). Some conditions may apply. Rates may vary from province to province. Rates subject to change without notice. Rates change often and depend on your down payment, credit and property; on approved credit (O.A.C.). E.&O.E.
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Contact info
Call, email or send us a message. We negotiate with over 50 lenders to find the right mortgage for you.
- Our location525 W 8th Ave #800, Vancouver, BC V5Z 1C6
- Phone number778-838-8005
- Email addressinfo@coastalblue.ca