Divorce or separation is hard enough to endure emotionally, but the financial breakup can become very stressful and complicated. You do have options, both in the period preceding a final agreement and once separation or divorce terms have been finalized. A spousal buyout mortgage can be an option which allows one spouse to remain in the home and allows the other to start fresh with the equity they are owed.
Your current mortgage lender may not necessarily be the best suited to your changing needs, and I have dozens of institutions and alternative lenders who can provide financing in these circumstances. In addition to the equity in the property there are other factors to consider, such as child or spousal support payments and joint debts to pay out. Call today and I can present the options relevant to your situation.
For the purposes of a buyout, in the right circumstances a client can borrow up to 95% of the property’s value.
A Worked Example
Susan and Peter both own their home but are going through a divorce. They have an estimated 10% equity in their home. The bank has indicated that they cannot refinance and must sell. Susan wants to keep the home and live in it with the children. They have agreed that Peter is entitled to $25,000 in equity to buy his new home.
A spousal buyout is the solution. Peter sells his share of the home to Susan for the appraised value, with the appraisal ordered by the mortgage broker. Peter receives $25,000 as a disbursement of the sale. The title of the home is transferred to Susan alone.
Find Out If You Qualify
Every separation is different and the numbers matter. Call me at 604-771-5192 to discuss your specific circumstances and I will present some options.