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Divorce and Separation Mortgage

Steering Your Mortgage Through a Separation or Divorce
Your Options After Divorce and Separation
You need to call your current mortgage lenders and find out what the exact balance owing is on the home. Furthermore find out any possible debts registered to the home. It is also imperative to request all of the details on your mortgage. Such as the current rate, product ( variable or fixed ), term ( 1 -5 years ), amortization, remaining term ( how much time is left ) , real estate fees if you sell ( average of 5% of the sale price ). Request most important which is the mortgage penalty if you are breaking the mortgage. Your bank may not have the spousal buy out product! You may need to call a broker. She can place you with a lender that allows you to borrow more than 80% of the value of the home.
Refinancing Your Home
One of you may wish to purchase the other partner’s share of the home. Especially if children are involved and stability is paramount.

If you choose this route, be aware of the costs that may be associated with it. Legal fees and a potential discharge fee from your lender. In addition, it is incumbent upon the partner keeping the home to prove they can manage the mortgage payments. This requires:

  • An up-to-date record of mortgage payments;
  • A sound credit history and a positive credit score;
  • Solid income – if you will be receiving alimony and/or child support, this can boost your income; the Wilson team can help you assess your finances as a lender will; and
  • Agreement between the spouses that one will sell to the other

Every lender is different on how they will utilize and calculate support, child tax credits and alimony. So its important to work with an experienced mortgage broker who knows which lender will work with your situation. Once you decide on this option and pursue it, get written confirmation that your name is no longer on both the mortgage AND the title. This is to ensure that you are no longer legally liable for payments.

Get in Touch with Canada’s Divorce and Separation Mortgage Experts
The Wilson Mortgage team is here to help you make this option possible. There are various ways to use alimony, child tax credits and child support to appeal to lenders. Give us a call and we’ll help you work out the details.

There is no doubt that a separation or divorce is one of the hardest steps you’ll ever take. It’s sad, hurtful and emotionally charged. During such a stressful time, it’s important that you have the support of professionals you can trust. The Wilson team is here to give you honest, useful information and advice on Divorce and Separation Mortgage solutions.

For more information contact The Wilson Team or call 613-695-9250

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