
Build Long-term Investments
Rent for positive cash flow
Seperation
Qualifying For Mortgages After Divorce
You might be in the middle of the separation process and have already talked to your bank, only to be declined for a new mortgage. There are always good options to allow you to move ahead with real estate in a spousal separation.
It’s just a matter of finding a good mortgage brokerage that can take the time to go through your options as often there are many factors involved. You also need to find a mortgage broker who has experience working with a lawyer to walk through the division of assets or how spousal and child support can be dealt with when it comes to mortgage financing. Your lawyer will also request that you consult a mortgage lender to determine what you can qualify for in a new mortgage, but oftentimes banks or other brokerages don’t have the knowledge or expertise to give you a clear idea of what you can afford unless you have a separation agreement. It’s kind-of-like a “chicken-and-egg” scenario – you can’t get a mortgage approval until you have a separation agreement, but you can’t move forward with the separation agreement until have a mortgage approval or pre-approval. We know this is frustrating and that’s where we can help!
You may also find you’re having difficulty qualifying for a mortgage because there is only one income earner in your household. If you’re paying child or spousal support, lenders count this as a liability payment. These payments will impact your debt ratios and ability to qualify for a mortgage.
Getting Approved
We Can Help You!
We will work in partnership with you and your lawyer to determine what the best financial step would be when going through a separation, and how to handle the real estate you jointly own with your ex.
If you’re not interested in getting a separation agreement, and you would consider the separation straight-forward, we work with lenders that will allow a statutory declaration instead of a full separation agreement (if there’s no child or spousal support).
In many cases you may find yourself in a transitional type of mortgage as your borrowing profile is different now then it was with your ex. We almost always recommend continuing with real estate ownership in a separation, as it’s difficult to financially move from owning to renting, and then back to owning a property again. Although the task may be daunting, we make it easy, clear, and will provide you with a path to move forward with your real estate during a spousal separation.
Get a Free Consultation
Mortgage After Divorce
Real Stories

Graham was in the process of going through a separation and wanted to keep the matrimonial home. Since Graham and his ex-spouse purchased the home ten years ago, there was a lot of equity in the home and the spousal buy out was significant at $250,000. Graham also had an existing mortgage on the house and a vehicle loan. When he went to his bank, their only advice was to sell the home and start over. Graham knew that he could manage a higher mortgage and really wanted to keep the house.
That’s where The Mortgage Centre – skipthebank.ca helped! Because the separation was simple and only a division of the equity in the home, a separation agreement wasn’t even required. Each party agreed to the division of equity. The Mortgage Centre worked with Graham to put together a monthly budget, so he felt financially comfortable buying his ex-spouse out of the agreement and carrying the new house on his own!
Post Divorce Mortgage Resources
November 10, 2022
Separating or Going Through a Divorce? Here’s Suggestions on How to Handle the Largest Asset You Have – Your Home
A divorce or separation is an emotional time. One of the most challenging decisions when you’re going...
June 15, 2022
Reasons Why Working with the Right Mortgage Broker is Important
Who’s taking care of your biggest asset’s value – your home? With grumblings in the Toronto and...
August 26, 2016
Getting separated is never easy: learn how to move ahead with your living arrangements
Aside from the emotions involved with a separation, there are several things to consider and act upon...
July 9, 2015
Selling your house? Think there should be no issues in qualifying for another mortgage? Think again.
If you’re contemplating selling your house and buying another one and you don’t think that getting approved...
Ready to Talk?
We’ll help you get the mortgage
that’s perfect for you.

