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Divorce is challenging, especially when it involves shared assets like a family home. A Spousal Buyout Mortgage allows one spouse to refinance the property, buying out the other’s share of equity while keeping ownership of the home. This solution provides stability and continuity during a significant life transition.
You may qualify for this program if:
Step 1: Consultation
I’ll start by understanding your financial and personal goals to craft a tailored solution.
Step 2: Appraisal
An appraisal will determine the current value of the home and how much equity is available.
Step 3: Refinancing
You’ll refinance the mortgage to access the funds needed to buy out your spouse’s equity.
Step 4: Transition Planning
Once financing is secured, you can focus on the next steps, whether staying in the home or preparing for other changes.
You don’t have to face this transition alone. Whether you want to remain in your home or explore new opportunities, I’m here to help you navigate this process with confidence and care.
My mortgage guide covers refinancing basics, which are central to how spousal buyout mortgages work.
Contact me today to discuss your options for a Spousal Buyout Mortgage.
The Spousal Buyout Program is a federally insured mortgage product that lets one partner refinance the matrimonial home up to 95% of its appraised value — well above the standard 80% refinance limit. The extra equity is used specifically to buy out the other partner's share of the home as outlined in a signed separation agreement.
This program is available through CMHC, Sagen, and Canada Guaranty (the three default insurers in Canada), and it's specifically designed for couples separating or divorcing. It can also be used to pay out other family-law-related debts, like equalization payments or legal fees tied to the separation.
Lenders look at three core things when reviewing a spousal buyout: a signed and finalized separation agreement (drafted by a lawyer), proof that the buyout funds will go directly to the departing spouse, and the remaining partner's ability to qualify for the new mortgage on their income alone.
That last piece is often the trickiest. If you were a dual-income household, qualifying solo at the current stress test rate can be challenging — which is why working with a mortgage broker who understands the spousal buyout process matters. Amanda Crowe helps Alberta clients navigate income documentation, debt servicing ratios, and lender selection to find the lender most likely to approve based on your specific situation.
You refinance the existing mortgage into your name alone and use the proceeds to pay your former spouse their share of the equity. In Alberta this can go up to 95% of the home's appraised value under the CMHC spousal buyout program, compared with the 80% cap on a standard refinance. You'll need three things: a signed separation agreement or court order setting out the equity division, a current appraisal from a designated appraiser, and enough income to carry the mortgage on your own.
No. Removing someone from a mortgage always requires a new mortgage in the remaining person's name. A separation agreement divides property between the two of you, but it has no effect on your lender. Until the lender formally approves a new mortgage and discharges the old one, your former spouse stays legally liable for the debt even if they have moved out and signed away their interest in the home. This catches people out more often than any other part of the process.
There are several routes, and none of them means automatically losing the home. Support payments you receive can often be counted as qualifying income. Adding a co-signer, frequently a parent, can bridge the gap. Extending the amortisation lowers your monthly payment and can bring your debt ratios back in line. If none of those work, an alternative lender may approve the file at a slightly higher rate while you rebuild your income position, with a view to moving to a traditional lender at renewal.
Support you receive can usually be counted, and support you pay is treated as a liability against your ratios. Lenders generally want the amount set out in a signed separation agreement or court order, along with three to twelve months of proof that the payments are actually arriving. Because the exact wording of your agreement affects what a lender will accept, I would rather review a draft while it can still be adjusted than work around it afterwards.
Expect two to three weeks from mortgage approval to closing, though the full timeline depends on how quickly the legal work moves. The appraisal takes a few days to a week, longer on rural and acreage properties. The separation agreement is usually the slowest piece, because it needs both parties and their lawyers to agree. My advice is to start the mortgage conversation while the agreement is still being negotiated rather than waiting until it's signed.
Most clients reach out either before signing their separation agreement (to understand what they can qualify for solo) or right after (with a signed agreement in hand and ready to refinance). Both are good times to start the conversation — the earlier we talk, the more options you'll have.
If you're going through a separation or divorce in Alberta and need to refinance the family home or buy out a partner, reach out for a confidential, no-obligation consultation. Pre-approvals can be issued within 24 hours, and Amanda Crowe works with lenders across Alberta who specialize in spousal buyout and post-separation mortgage scenarios.
If you have more questions, or would like assistance with planning your mortgage, please reach out to me today!
