Keeping the home after a separation? You can buy out your ex with as little as 5% equity.
The Spousal Buyout Program treats your refinance as a purchase — so you can borrow up to 95% of the home's value, not the usual 80%, to pay out your former partner’s share.
Up to 95% LTVTreated as a purchaseOne income qualifiesSupport counts as incomeRemoves ex from title100% confidential
Separation is hard enough without losing the home on top of it. Here’s what most people are never told: a normal refinance caps out at 80% of your home’s value, which means if you don’t have a big equity cushion you simply can’t pull out enough to pay your ex their share. The Spousal Buyout Program changes that completely — it treats the buyout as a purchase, letting you finance up to 95% of the value. With a signed separation agreement and enough income to carry the home on your own, you can keep the house, remove your former partner from title and the mortgage, and move forward — often with little or no cash out of pocket.
What you get
Why Canadians choose Mortgage Squad Advisors.
Refinance up to 95% of the home’s value (vs. the standard 80% refinance ceiling)
The buyout is treated as a purchase under Sagen, Canada Guaranty, and CMHC programs
Pay out your former partner’s equity share and any joint debts named in the agreement
Remove your ex from both title and the mortgage in one transaction
Qualify on your own income — child and spousal support can count toward qualifying
Keeps the kids in their home and school during an already-disruptive time
Standard insured pricing — competitive A-lender rates, not a penalty product
B-lender or private fallback if credit was damaged during the separation
We coordinate directly with your family lawyer so the financing matches the agreement
All lender + broker fees disclosed in writing upfront
Maya · 24/7 AI advisor
Question about spousal buyout mortgage? Maya answers instantly in 50+ languages.
We need (or help your lawyer finalize the wording for) a signed separation agreement that states you’re keeping the home and the buyout amount. Send us the home value, the current mortgage balance, and your income. We confirm whether the 95% program fits and what you’ll qualify for — usually within 24 hours.
2
Structure the buyout
We size the new mortgage to pay out the existing mortgage and your ex’s agreed share (plus any joint debts the agreement assigns to the home). Insured 95% program where you need the reach; conventional refinance if you have more equity. If support income is involved, we package the proof lenders require.
3
Fund + fresh start
Your lawyer registers the new mortgage, pays out your former partner, and removes them from title. You walk away as the sole owner with one mortgage in your name. We set a review for your next renewal so you’re never stuck on a rate that no longer fits your single-income reality.
How can the spousal buyout program let me borrow 95% to buy out my ex?
Here is the core advantage almost no one explains clearly. A normal refinance in Canada is capped at 80% of your home’s value, so if your equity is thin you simply cannot pull out enough to pay your former partner their share. The Spousal Buyout Program sidesteps that ceiling entirely by treating the transaction as a purchase rather than a refinance. Because it is structured as a purchase, you qualify for high-ratio insured financing — up to 95% of the appraised value.
That 15-point difference is often what decides whether you keep the home or are forced to sell it. On an $800,000 home, 80% gets you to $640,000 of mortgage; 95% reaches $760,000 — a $120,000 swing that can be exactly what your ex’s share costs. With 100+ lenders and deep experience on these matrimonial files, we structure the deal so the program’s reach actually lands the buyout.
What do I need to qualify for a spousal buyout mortgage?
The non-negotiable document is a signed separation agreement. It must clearly state that you are retaining the home and specify the exact buyout amount being paid to the departing party. Lenders rely on it to confirm this is a genuine spousal buyout and not a disguised cash-out refinance — which is why the program lets you exceed the usual limits in the first place.
The home must be the matrimonial or principal residence, and the file needs both parties’ details for the title and mortgage discharge. Critically, the proceeds can only pay out the existing mortgage and your former partner’s agreed share — plus any joint debts the agreement assigns to the home. You cannot fold in unrelated debt or take extra cash under the 95% program. If your agreement is not yet finalized, we coordinate with your family lawyer on the wording lenders require, confidentially and without judgment.
How does a spousal buyout work step by step?
First, the lender orders an appraisal to establish current market value — the 95% is always calculated against that appraised figure, not the number written into your agreement, so we flag any gap early. Second, we pull the buyout figure straight from the signed separation agreement and size a new mortgage to cover your existing balance plus your ex’s agreed share.
Third, the new mortgage is approved and registered in your name alone. Your lawyer uses the funds to pay out the old mortgage, pay your former partner their share, and remove them from both title and the mortgage in a single transaction. You walk away as sole owner. A clean insured file typically funds in two to four weeks, much like a purchase. The most common delay is agreement wording — which is exactly why we get involved with your lawyer before it is signed, so the legal and financing sides line up the first time.
Can I qualify on one income after separation?
This is the real test, because the home now has to be carried by you alone. Lenders apply the standard debt-service ratios and the mortgage stress test to your income, so the question is whether your single income supports the new payment. The encouraging part: court-ordered or agreement-based child and spousal support you receive can count as qualifying income — typically with the separation agreement plus proof you have actually been receiving it, usually for three to six months, and evidence it will continue.
Existing debts matter too. Car loans, lines of credit, and especially support you pay out reduce how much mortgage you can carry, since lenders treat payable support as a monthly obligation. We model your full ratios before you commit and, where it is tight, steer you toward the lenders that treat support income and obligations most favourably. No surprises at the finish line.
What if my credit took a hit during the separation?
It happens constantly — joint accounts mishandled by an ex, missed payments during the chaos, a temporary income gap while everything was in flux. If your credit no longer clears the insured program’s bar, the home does not have to be lost over a rough patch. Alternative B-lenders and private lenders can fund the buyout on an equity basis, looking at the property and the agreement rather than a bruised score.
The key is not just getting funded today, but having a mapped exit. We pair the short-term solution with a deliberate plan to repair credit and refinance back to A-lender pricing once you stabilize, usually at the next renewal. That is where complex-file expertise earns its keep: anyone can place an easy deal, but landing a buyout when credit, income, and timing are all strained is what we do. Confidential, fees disclosed in writing, and available in 50+ languages.
FAQ
Common questions, answered.
Don’t see yours? Ask Maya — instant answer, any time.
What exactly is the Spousal Buyout Program?
It’s a default-insured program (offered through Sagen, Canada Guaranty, and CMHC) that lets one partner refinance the matrimonial home up to 95% of its value specifically to buy out the other partner’s interest. The key is that it’s treated as a purchase rather than a refinance, which is why you get the 95% reach instead of the normal 80% refinance limit. It exists precisely so families don’t have to sell the home just to divide its equity.
Do I really need a signed separation agreement?
Yes — it’s mandatory for the 95% program. The agreement must clearly state that you are retaining the property and specify the buyout amount. Lenders use it to confirm the funds are going to a legitimate spousal buyout, not a cash-out refinance in disguise. If you don’t have one yet, we’ll coordinate with your family lawyer on the wording lenders need before you finalize it.
Can I use the funds for anything other than the buyout?
Under the 95% program, no — the proceeds can only pay out the existing mortgage and the other party’s share of equity (plus any joint debts the separation agreement assigns to be paid from the home). You can’t use it to consolidate unrelated debt or take extra cash. If you need broader access, we’d look at a conventional 80% refinance instead and compare the two.
Can I qualify on just my income now?
That’s the real test. The home now has to be carried by you alone, so lenders apply the standard debt-service ratios and stress test to your income. The good news: court-ordered or agreement-based child and spousal support you receive can count as qualifying income, usually with proof you’ve been receiving it for 3-6 months and that it will continue. We’ll model your ratios before you commit so there are no surprises.
Does support I pay hurt my qualifying?
It can. If you’re the one paying child or spousal support, lenders treat those payments as a monthly obligation that reduces how much mortgage you can carry — similar to a loan payment. We factor it in from the start and, where it’s tight, look at the structures (or lenders) that treat support most favourably.
What if my credit took a hit during the separation?
Very common — joint accounts, missed payments during the chaos, a temporary income gap. If your credit no longer qualifies for the insured program, B-lenders and private lenders can still fund the buyout on an equity basis, and we map your exit back to A-lender pricing once things stabilize. The home doesn’t have to be lost over a rough credit patch.
Can I buy out my ex if we’re not legally married?
Yes — common-law and unmarried co-owners can use the program too. What matters to lenders is the ownership and the agreement dividing it, not the marital label. A cohabitation or separation agreement specifying the buyout serves the same purpose as a married couple’s.
How is the home’s value determined?
The lender orders an appraisal to establish current market value, and the 95% is calculated against that figure. Sometimes the value in your separation agreement differs from the appraisal — we’ll flag that early because the financing is based on the appraised number, and a gap can affect how much you can actually pull out.
What does it cost compared with a normal refinance?
Because the 95% program is insured, you pay a default-insurance premium (added to the mortgage), but in exchange you get competitive A-lender interest rates — it’s not a high-rate product. For many people the insured premium is far cheaper than the alternative of selling the home, paying realtor commissions, and re-entering the market as a single buyer at today’s prices.
How long does the whole process take?
Once you have a signed agreement and we have your documents, a clean insured file typically funds in 2-4 weeks — similar to a purchase. The most common delay is the separation agreement wording, which is why we get involved with your lawyer early so the financing and the legal side line up the first time.
