Separation Mortgage

Our guide to navigating home ownership after marriage

Breaking up is hard — getting a mortgage after a separation shouldn't be.

At Silverman Mortgage Group we can't fix your relationship, but we can help you build a bright future.

Whether you're legally married or in a common law relationship, having a solid end to end home ownership plan reduces stress and simplifies the separation process.

Want to refinance the marital home? We can help.

In many relationships, the marital home is jointly owned by both partners. Chances are good the home is also the most valuable asset you'll need to deal with during the separation, especially if you live in the Lower Mainland, Fraser Valley or the Interior where property values are high.

While simply selling the home and splitting the proceeds is always an option, it might not be the best choice for you or your family. As with all legal matters, it's important to consult with a lawyer before deciding how to deal with your family home.

Buying out your ex?

If you've opted to buy out your spouse and assume full ownership of your marital home, the Silverman Mortgage Group can help.

We'll support your transition from joint ownership to sole ownership with a separation mortgage. This will let you buy out your spouse and preserve the equity you've built up in your home, while maintaining stability for yourself and your family.

Click here to get started. For more information read our guide to our guide to separation, divorce and home ownership.

Separation and Home Ownership Guide.

Do I need to have a separation agreement?

Short answer - yes.

Lenders require a separation agreement to confirm any child or alimony payments to be received. These figures are required within the debt servicing qualifications for affordability. Should no alimony or support be payable and there is no division of assets, an exception can be sought by utilizing a statutory declaration signed with a solicitor.
Does my separation agreement need to be completed?

No. We can use an accepted separation agreement that has not yet been executed. The condition will be that the terms of the separation agreement are executed. Additionally, these must be adhered to, by or on your purchase or refinance date.
Can I qualify on my own?

Of course, click any of our "get started" buttons to determine how much you can qualify for. We will or can use alimony or child support payments received or to be received as qualifying income on your application. Conversely, any alimony or child support being paid must be taken into consideration when being qualified.
Do I need to be divorced to proceed?

No. In Canada, you need to have 12 months of separation before you can apply for a divorce. Therefore you don't have to wait and can apply for a mortgage before your separation is even finalized.
What do I need to provide to show my portion of our assets?

The division of assets will be outlined within your separation agreement. Any assets that are presently owned that are being used for downpayment will require three months of supporting bank account statements. Any assets being transferred through the separation, require confirmation of deposit into your bank account or RRSP's.
Should I have a different broker to my partner?

No. In fact, to the contrary. We recognize this may be a challenging scenario to communicate with your ex, we remove that requirement of the financing and will adhere to and maintain privacy between parties.

Having us help both of you ensures both mortgages will close on time, avoiding any issues and delays in closing.

Should either or both of you require bridge financing, we can ensure a credit solution or strategy is in place to allow this with your marital home as security. This can be a real issue when working with a sizable bridge loan and two varying lenders.

We'll assure that neither party is aware of the structure, size, co-signers, or details of the others mortgage particulars.

Jordan de Brouwer

"I had a great experience with them. I was a first time home buyer and didn't know much about the mortgage application experience. They made the whole process very easy and stress free and explained each step in detail. I would recommend them to anyone looking for a mortgage, especially first time home buyers."

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Leah Allen

"We purchased a second property and Silverman Mortgage Group made the process so easy and quick. I especially liked the personalized video presentation which made it possible for us to clearly understand the process. At a very busy time in our lives almost everything was completed in the comfort of our home."

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Reid Arkinstall

"My wife and I had a great experience working with the Silverman Mortgage Group. It took us a while to find the right home but Zach and his team worked with us throughout the entire process, ensuring we always had the most up-to-date mortgage information. We look forward to working with SMG in the future."

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Resources to help you with mortgage through a divorce of separation

Mortgage Advice to Help You Through a Separation

With the latest stats claiming that about half of marriages end in divorce and with around three-quarters of Canadians being homeowners, it’s important to know how to handle your mortgage if you decide to separate. Here’s a quick list of things to consider.

Learn More

Protect Your Credit Through a Divorce

Separating all joint accounts from your ex-spouse is essential to taking control or your finances through a divorce of separation. Learn more about how to protect your credit in this tough situation.

Learn More

Understanding a Spousal Buyout Mortgage

If you’re going through a marital breakdown, you might have questions about how to split assets and access your home equity. Understanding how a spousal buyout mortgage can help you might bring clarity to your situation.

Learn More

If You’re Looking to Sell Your Property, Start Here

While talking with a mortgage professional might not sound like the most logical place to start the selling process, here are some excellent reasons why it makes the most sense.

Learn More

Learn more about how credit impacts a home purchase

How to Establish New Credit

if you don't have established credit, a secured credit card is a great way to get started when you have don’t have the borrowing history to get credit from a bank. Learn more about establishing credit here.

Learn More

Benefits of Working with an Independent Mortgage Professional

If you need a mortgage, working with an independent mortgage professional will save you money and provide you with better options than dealing with a single financial institution.

Learn More

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MORTGAGE ARTICLES

Getting a Mortgage While on Parental Leave

By Zach Silverman • 24 Apr, 2024

Chances are if the title of this article piqued your interest enough to get you here, your family is probably growing. Congratulations! If you’ve thought now is the time to find a new property to accommodate your growing family, but you’re unsure how your parental leave will impact your ability to get a mortgage, you’ve come to the right place! Here’s how it works. When you work with an independent mortgage professional, it won’t be a problem to qualify your income on a mortgage application while on parental leave, as long as you have documentation proving that you have guaranteed employment when you return to work. A word of caution, if you walk into your local bank to look for a mortgage and you disclose that you’re currently collecting parental leave, there’s a chance they’ll only allow you to use that income to qualify. This reduction in income isn’t ideal because at 55% of your previous income up to $595/week, you won’t be eligible to borrow as much, limiting your options. The advantage of working with an independent mortgage professional is choice. You have a choice between lenders and mortgage products, including lenders who use 100% of your return-to-work income. To qualify, you’ll need an employment letter from your current employer that states the following: Your employer’s name preferably on the company letterhead Your position Your initial start date to ensure you’ve passed any probationary period Your scheduled return to work date Your guaranteed salary For a lender to feel confident about your ability to cover your mortgage payments, they want to see that you have a position waiting for you once your parental leave is over. You might also be required to provide a history of your income for the past couple of years, but that is typical of mortgage financing. Whether you intend to return to work after your parental leave is over or not, once the mortgage is in place, what you decide to do is entirely up to you. Mortgage qualification requires only that you have a position waiting for you. If you have any questions about this or anything else mortgage-related, please connect anytime. It would be a pleasure to work with you.

A First Home Savings Account (FHSA)

By Zach Silverman • 18 Apr, 2024

Dreaming of owning your first home? A First Home Savings Account (FHSA) could be your key to turning that dream into a reality. Let's dive into what an FHSA is, how it works, and why it's a smart investment for first-time homebuyers. What is an FHSA? An FHSA is a registered plan designed to help you save for your first home taxfree. If you're at least 18 years old, have a Social Insurance Number (SIN), and have not owned a home where you lived for the past four calendar years, you may be eligible to open an FHSA. Reasons to Invest in an FHSA: Save up to $40,000 for your first home. Contribute tax-free for up to 15 years. Carry over unused contribution room to the next year, up to a maximum of $8,000. Potentially reduce your tax bill and carry forward undeducted contributions indefinitely. Pay no taxes on investment earnings. Complements the Home Buyers’ Plan (HBP). How Does an FHSA Work? Open Your FHSA: Start investing tax-free by opening your FHSA. Contribute Often: Make tax-deductible contributions of up to $8,000 annually to help your money grow faster. Withdraw for Your Home: Make a tax-free withdrawal at any time to purchase your first home. Benefits of an FHSA: Tax-Deductible Contributions: Contribute up to $8,000 annually, reducing your taxable income. Tax-Free Earnings: Enjoy tax-free growth on your investments within the FHSA. No Taxes on Withdrawals: Pay $0 in taxes on withdrawals used to buy a qualifying home. Numbers to Know: $8,000: Annual tax-deductible FHSA contribution limit. $40,000: Lifetime FHSA contribution limit. $0: Taxes on FHSA earnings when used for a qualifying home purchase. In Conclusion A First Home Savings Account (FHSA) is a powerful tool for first-time homebuyers, offering tax benefits and a structured approach to saving for homeownership. By taking advantage of an FHSA, you can accelerate your journey towards owning your first home and make your dream a reality sooner than you think.