Separation, Divorce and Your Mortgage in Canada
What happens to a joint mortgage when you separate in Canada: selling, spousal buyouts, refinancing up to 80%, and how lenders qualify you on one income.
Separation, Divorce and Your Mortgage in Canada
When a couple separates, a joint mortgage doesn't split itself. Both people stay responsible for the full payment until the mortgage is paid off, refinanced or transferred.
Your three main options
- Sell the home and divide what's left after the mortgage, penalty and selling costs.
- Buy out your former partner. You refinance in your name alone and pay them their share of the equity. Refinancing is normally capped at 80% of the home's value.
- Keep owning it together for a period — common when children are involved, but both names stay on the debt.
Qualifying on one income
A buyout means you must qualify alone, including the stress test. Support payments you receive can usually count as income once they're in a signed separation agreement. Check your ratios with the DTI calculator.
Watch for the penalty
Breaking a fixed mortgage early can cost thousands. Estimate it with the break penalty calculator before you decide.
General information only — family property rules differ by province, so speak to a family lawyer.
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