What Happens To Your Home After A Separation?

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What Happens To Your Home After A Separation?
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• Relationships and marriages dont always succeed,
  and there may come a time in many of our lives
  when we are forced to separate from a partner
  with whom we share a property.
• While separating is never easy in fact it can
  be extremely complex and painful it doesnt
  have to mean that you lose your home, and while
  many couples choose to sell their home and split
  the equity in some way, there is another solution

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• The spousal buy-out program
• If both parties no longer wish to remain in the
  home they once shared, then a spousal buy-out
  wont be for them, but if one party does wish to
  stay in it (perhaps because of children who may
  be enrolled in a good school, for example), then
  this could be a great alternative to selling the
  property.
• The spousal buy-out program is backed by all
  three of Canadas mortgage insurance providers,
  and is designed to enable one party to refinance
  the shared home up to 95 of its appraised value.
  To qualify for the program, both parties must be
  on the deed to the property, and as a one-off
  opportunity, the program also enables both
  parties to pay off other debts outside of the
  separation agreement.

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• Can you afford it?
• While the cost of purchasing a home from anyone
  can be high, with the help of the spousal buy-out
  program, you can mitigate those costs by bringing
  in a co-signer, who could be an existing family
  member or even a new partner, to help.
• If you would like to hold onto the home you
  shared with your ex-partner with the help of the
  spousal buy-out program, there are a few things
  youll need

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• An appraisal
• This will be required to help determine
  Equalization of Assets, but unless ordered by a
  third party, it might not be acceptable to some
  lenders. Note that the appraisal must also have
  been produced within 90 days (less with some
  lenders) to ensure accuracy, and if the original
  report was previous to 90 days, you must obtain a
  new one.
• A signed separation agreement
• Lenders must be provided with a signed copy of
  the separation agreement in order for you to
  qualify, and all assets must be clearly allocated
  within the document.

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• An agreement of purchase and sale
• A standard agreement of sale indicating the new
  ownership.
• An employment letter or recent pay stub
• The lender will need to see proof of this to
  verify whether youre able to fulfil your
  mortgage requirements.
• Debt pay out list
• For paying off debts outside of the separation
  agreement, this is a one-time option, of which
  the proceeds may only be used to buy out the
  other owners share of equity and/or to pay off
  joint debt as explicitly noted in the signed
  separation agreement.

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• Separating from a partner can be a stressful and
  painful period in your life, but with the help of
  the aforementioned program, you could gain a
  little security and peace of mind by remaining in
  the home you love, with your children. For more
  detailed advice surrounding the spousal buy-out
  program, and to find out if you could be
  eligible, talk to a local mortgage broker.

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  finding a mortgage for your property. Luke Wile,
  is one the best mortgage brokers in Calgary and
  is proud to serve clients from across Canada,
  while being centered in Calgary, Alberta. Luke is
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  get fast and personal expertise for your
  mortgage. Contact us today!