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MORTGAGE OPTIONS AFTER A SEPARATION

Are you seeking guidance on managing your mortgage following a divorce or separation from a common-law partner?


Splitting assets can be a daunting task, especially when it comes to the home, which is likely the most valuable shared asset. To start the process, it's important to first get a Separation Agreement with the help of a lawyer. Once this is done, you can consult a Mortgage Broker for advice on your next steps to splitting the house especially if there is a mortgage involved.





When going through a separation, determining how to divide assets can be a complex and emotional process. One possible solution is selling the house, but this can be difficult if both partners do not agree to it. Selling the house may be a good choice if you need to pay off debts or move on to a new living situation. The separation agreement will specify the terms for dividing the house, which will state how you will be splitting the proceeds (50/50 unless stated otherwise). If there is a mortgage on the property, it is important to consult with a lender to understand any applicable penalties or fees for terminating the mortgage. Talking to a mortgage broker can help you consider all options and get expert advice.



In cases where one partner wishes to remain in the shared home, there are options available to divide the proceeds fairly. If the home has an existing mortgage, the partner who stays should consider refinancing the mortgage. This approach allows you to pay off the mortgage that was initially taken out by both partners and then secure a new mortgage under the name of just one borrower. This approach is important for two reasons. Firstly, it allows for additional funds to be directed towards spousal buyouts or debts incurred before or during the separation. Secondly, it allows for the liabilities of the other party to disappear, giving one partner sole ownership of the home. It's important to bear in mind that refinancing will lead to one person being solely responsible for monthly payments. Therefore, it's advisable to consult an expert to determine affordability and whether you can solely pay for the monthly payments.



When going through a separation, you may find yourself in need of a new place to call home. However, it's important to take into account that your income may have changed. Your expenses could also be higher due to child support or alimony payments. To strengthen your application for a new home, you may require a co-signer who can vouch for your reliability in making payments. It's important to remember that being a co-signer comes with certain responsibilities.



If you're going through a divorce, it's crucial to be aware of how it could impact your finances and credit score. To determine if you're eligible for a mortgage, it's recommended that you seek our assistance. Our team can provide personalized mortgage advice and assist you in rebuilding your credit. Reach out to one of our mortgage brokers today by booking a consultation.





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