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Spousal Buyout Program

Are you getting a divorce? Do you want to dissolve financial ties with your ex-spouse? I can help you with the Spousal Buyout program that will benefit both parties and help you move forward financially independent.

The spousal buyout program is different from a traditional refinance because it allows you to access 95% of your homes equity instead of the traditional 80%. It’s a game changer!

The Spousal Buyout program is helpful for people who are going thru relationship breakdown; this program is available for married (individual or joint title) and common law couples, and joint titled individuals ( ex. siblings who own a home together)

The Spousal Buyout Programs Allows the following to be included in the mortgage:

  • Equity Payout to ex spouse
  • Matrimonial Debt
  • Mortgage Penalty
  • Insurance Fees (CMHC/Sagen (GE)/ Canada Guaranty) – these fees may be able to transferred if previously insured
  • Legal Fees

Signed minutes of settlement (separation agreement) are a requirement of the Spousal Buyout Program but we can commence a pre approval before the minutes of settlement are signed. 

If you and your ex-spouse are close to settling and you would like to determine if you can qualify to take over the home, contact Krista now for more information on the Spousal Buyout program.

Krista Lindstrom is a member of the Collaborative Divorce Association of Alberta.

READ:  Spousal Buyout Mortgage article published  in 2020 Divorce Magazine



  • We can use up to 95% value of the home.
  • Spousal and Child Support can be used as income.
  • Joint debt can be included.
  • Lump sum payouts to spouse can be included.

Marnie and Rick both own their home and are going through a divorce. They have an estimated 10% equity in their home. The bank has indicated that they can’t refinance and must sell due to limited equity.

Marnie and Rick would like for Marnie to keep the home and live in it with the children (to limit the change of environment for the kids) but Marnie only works part time and will be relying on spousal support, child support and child tax credit for additional income. They have agreed that Rick is entitled to $10,000 in equity to buy his new home.

Spousal buyout is the solution! Rick sells his share of the home to Marnie for the appraised value (appraisal ordered by mortgage broker). Rick receives $10,000 as a disbursement of the sale. Rick is removed from the title so he can purchase his own home and the title of the home is changed to only Marnie.

If you would like to dissolve your financial ties from your ex-partner, the Spousal Buyout program may be for you.

Spousal Buyout Program

Lance and Jenny have decided to separate. Lance wants to keep their family home, and Jenny wants to purchase a new property. Let’s look at their financial information:

Home value: $425,000
Mortgage balance: $350,000
Joint equity: $75,000 ($425,000 – $350,000)
Credit card debt: $15,000

The couple would like to split their existing equity equally, so Lance would have to pay Jenny $37,500 to buy her out of the home. If they can, they’d also like to pay off their $15,000 in joint credit card debt through the refinance. To do all this, Lance would need a new mortgage of at least $402,500 ($350,000 + $37,500 + $15,000).

If they were to go the traditional refinancing route, they would only be able to acquire a mortgage worth 80% of their home’s value, which would look like this: $425,000 x 0.8 = $340,000 New mortgage

Since the maximum loan amount is $340,000—a number that is less than their existing mortgage—it’s definitely not enough to buy Jenny out of the mortgage, let alone tackle their credit card debt.

Under the Spousal Buyout Program, the couple can access up to 95% of their home’s value. When you crunch the numbers, it looks like this: $425,000 x .95 = $403,750 New mortgage

The maximum loan amount in this situation, $403,750, is more than enough equity to buy out Jenny—giving her $37,500 to put towards a new home—and to pay off the joint credit card debt.

* Mortgage insurance premiums are payable above 80% LTV and each mortgage insurer has specific requirements. Payout penalties may apply on the existing mortgage. Subject to qualification.

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