Spousal buyout vs refinance —
how to keep the home
after a separation.
A standard refinance caps at 80% of your home’s value — often not enough. The insured Spousal Buyout Program lets you borrow up to 95%, purpose-built to buy out your ex.
What separates the
two options.
The deciding factor is almost always how much you need to borrow relative to 80% of your home’s value.
80% vs 95% — that's the decision
A regular refinance caps borrowing at 80% of appraised value. The Spousal Buyout Program raises that ceiling to 95% — purpose-built for separations where equity is limited and 80% simply doesn't cover the mortgage plus the buyout.
A refinance vs a purchase
The buyout program is insured: the insurer treats the transaction as a purchase (you're buying your ex's share), not a refinance. That's what unlocks the higher borrowing limit — and often a lower rate than an uninsured refinance.
Separation agreement required
The buyout program requires a signed separation agreement — or court order — spelling out who keeps the home, what's owed, and the division of assets. A standard refinance doesn't strictly require one, though legal clarity is always wise.
Both require solo qualification
Whichever route fits, the household has gone from two incomes to one. You must qualify for the full new mortgage — and pass the stress test — on your income alone. Checking this early prevents a rushed decision under emotional pressure.
How to choose
the right path.
Three steps — starting with the number
that decides everything.
Understand your situation
Know your home's appraised value, current mortgage balance, and the equity share owed to your ex. A simple calculation — 80% of value minus the balance — tells you which path is available to you.
Compare on the factors that matter
Maximum borrowing, rate, insurance premium, and total cost differ between the two options. We run both side by side so you choose based on real numbers, not assumptions — including the insured premium on the buyout path.
Get pre-approved for the right product
Once you know your path, we shop 100+ lenders for the best rate on that specific product. We coordinate timing with your separation agreement and lawyer so nothing delays the transfer.
Which is right
for you?
Tap any situation below to see how we approach it.
Regular refinanceLots of equity, modest mortgage
Lots of equity, modest mortgage
If 80% of the home's appraised value comfortably covers your mortgage plus your ex's share, a standard refinance is the simplest, cleanest route — standard rules, no separation-agreement requirement beyond what's prudent.
Run my numbersSpousal Buyout ProgramLimited equity — you need to borrow more than 80%
Limited equity — you need to borrow more than 80%
Borrow up to 95% of the home's value specifically to buy out your partner. Often the only way to keep a home a regular refinance can't stretch to cover. The insurer treats it as a purchase — which is what unlocks the higher limit.
Check if I qualifyCheck early — either wayYou're not sure you can qualify on one income
You're not sure you can qualify on one income
Both paths require qualifying on your own income. Get a realistic assessment before timelines force a decision — options like a co-signer or adjusted amortization may help. This is the part that catches people off guard.
Get an honest assessmentStart the agreement in parallelYour separation agreement isn't signed yet
Your separation agreement isn't signed yet
The buyout program requires a signed separation agreement specifying the terms. Get that in place with your lawyer — we'll prep the financing in parallel so nothing delays closing once the document is ready.
Start the finance prepLet us model bothYou want to compare the true cost of each path
You want to compare the true cost of each path
The insured buyout program carries a premium added to the mortgage, but its rate is often lower than an uninsured refinance. Whether the lower rate offsets the premium depends on your balance and term — we model both paths before you decide.
Model both optionsRegular refinance (only option)Your home is valued above $1.5M
Your home is valued above $1.5M
The insured Spousal Buyout Program requires the home be valued under $1.5M — that's the insured purchase cap. Above that threshold, a conventional refinance (up to 80%) is your route. Private or B-lender seconds can sometimes bridge a gap.
Explore my optionsRegular refinance
vs Spousal Buyout Program.
Eight factors that decide which product is right — and how each one differs.
- You have substantial equity (80% covers mortgage + their share)
- You want the simplest path with standard rules
- You qualify comfortably on your own income
- You don't need to stretch past the 80% limit
- 80% isn't enough to cover the mortgage + your ex's share
- There's limited equity in the home
- You have a signed separation agreement
- You want to keep the home and can carry it solo
| Factor | Regular Refinance | Spousal Buyout Program |
|---|---|---|
| Maximum borrowing | 80% of appraised value | Up to 95% of appraised value |
| Treated as | A refinance | A purchase (insured) |
| Separation agreement required? | Not necessarily | Yes (or a court order) — must specify the buyout terms |
| Use of funds | Flexible (within refinance rules) | Buyout (some insurers also allow joint debts in the agreement) |
| Default insurance | Not insured (conventional) | Insured by a mortgage insurer (e.g. Sagen) |
| Qualify on | Your income alone | Your income alone |
| Best when | Lots of equity | Limited equity, need >80% |
| Rate | Uninsured refinance pricing | Often lower insured pricing |
Common questions,
clear answers.
Borrowing limits, separation agreements, qualifying solo, and insured rates — answered plainly.
What's the difference between a spousal buyout and a regular refinance?
A regular refinance lets you borrow up to 80% of your home's appraised value to pay out your ex, with standard rules. The Spousal Buyout Program is an insured program that lets you borrow up to 95% — specifically to buy out a former partner — because it treats the transaction as a purchase. The buyout program is the answer when 80% isn't enough to cover your mortgage plus your ex's share, which is common when equity is limited.
How much can I borrow to buy out my spouse?
Through a regular refinance, up to 80% of the home's appraised value. Through the insured Spousal Buyout Program, up to 95% (5% of the first $500,000 plus 10% of the rest as minimum equity, on homes valued under $1.5 million). The higher limit of the buyout program is often what makes keeping the home possible when there isn't much equity. In both cases the funds for the buyout must cover your existing mortgage and your ex's share of the equity, and you must qualify on your own income.
Do I need a separation agreement for a spousal buyout?
Yes, or an equivalent document such as a court order. The Spousal Buyout Program requires written proof that clearly sets out the buyout terms — who keeps the home, what's owed to whom, and the division of assets and debts. The funds go to buying out the other party (some insurers also allow joint debts specified in the agreement), not to general cash-out. A regular refinance doesn't strictly require one, but legal clarity is always wise.
Can I keep the house after a separation on one income?
Often yes — but you must qualify for the new mortgage on your own income and pass the stress test solo, since the home is moving from two incomes to one. This is the key thing to check early. If it's tight, options like a co-signer or a longer amortization to lower the payment may help. An honest assessment up front tells you what's realistic before timelines force a rushed call.
Is the spousal buyout program's rate higher because it's insured?
It carries a default-insurance premium (added to the mortgage), but insured mortgages often have a lower interest rate than uninsured refinances, which partly offsets the premium. So the all-in cost can be quite competitive — and for many separating homeowners the program is the only route that allows keeping the home at all, since a regular refinance caps out at 80%. A broker can compare the true cost of both for your situation.
We’ll try to beat your rate.
If we can’t, we pay you $500.¹
¹ Rate Beat: eligible Big-6 bank written offers only · same product, term & amount · $500 paid to you or your nominated charity at closing · conditions apply
Find a mortgage specialist in your city
Separation timelines are rarely forgiving. Whether you need a regular refinance or the insured Spousal Buyout Program, our advisors across Canada can run the numbers, coordinate with your lawyer, and get a pre-approval in place before your agreement is finalised.