Splitting Up? How Spousal Buyouts Let You Keep Your Home
Going through a divorce or separation is already hard. Splitting a home can make it worse. A spousal buyout offers a way to move forward without selling your home. It helps one partner keep the home while the other receives their fair share.
What Is a Spousal Buyout?
A spousal buyout happens when one partner buys the other’s share of their jointly owned home. Instead of selling and dividing the money, the partner who wants to stay pays out the other. This option can reduce stress, keep stability, and make the process less disruptive—especially if children are involved.
How a Spousal Buyout Works
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Determine Your Home’s Value and Equity
Get your home appraised. This shows how much it’s worth and how much equity you each hold. Equity is the value of the home minus what’s left on the mortgage. -
Calculate the Buyout Amount
Use a Canadian spousal buyout calculator to find out how much one partner needs to pay. The goal is to fairly split the home’s equity. -
Secure Financing
The buying partner can apply for a spousal buyout mortgage, which lets them finance up to 95% of the home’s appraised value. This way, they don’t need a large cash reserve. -
Get a Legally Binding Agreement
Both parties must sign a separation agreement. This legal document outlines the terms of the buyout and protects everyone involved. -
Complete the Transaction
Once the financing and agreement are ready, the lender transfers the mortgage to the buying partner. The selling partner then receives their share of the equity.
Financial Considerations
A spousal buyout involves more than just a mortgage. You’ll need to factor in:
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Appraisal costs
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Legal fees for the separation agreement
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Mortgage transfer and admin fees
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Possible changes in mortgage terms and interest rates
Think long term. Make sure the new mortgage fits your financial plan. If you’re unsure, get help from professionals who know how these situations work.
The CMHC Spousal Buyout Program
The Canada Mortgage and Housing Corporation (CMHC) offers a spousal buyout option that works across Ontario and Canada. This program lets eligible partners refinance up to 95% of the home’s value—even if they’re not sitting on a pile of cash.
To qualify, you must have a legal separation agreement in place. Lenders will also assess your ability to take on the new mortgage on your own.
You Don’t Have to Navigate This Alone
Many call me a “trauma support agent” because I work with family lawyers and clients during some of their hardest moments. I understand that this isn’t just about real estate—it’s about your life, your safety, and your future.
Our team at the Shannon Murree Group | Real Estate With Impact – RE/MAX Hallmark Chay will guide you through every step. We’ll also connect you with experienced mortgage brokers and trusted legal professionals who understand your needs.
Take Back Control
Your home represents more than just bricks and mortar—it represents stability, dignity, and a fresh start. You deserve support that puts you first.
Contact us today to explore your options. We’ll help you move forward with clarity and confidence.
You Are Not Alone
Facing a separation? Don’t let your home add to the stress. Contact us to explore spousal buyouts and get connected with mortgage brokers and legal experts who make the process smoother. You’re not alone — we’re here to help.
I’ve been called a “trauma support agent” because I work closely with family lawyers during these tough times. Real estate is more than buying or selling. It’s about helping people protect their futures.
Our team can guide you through spousal buyouts. We connect you to trusted professionals, including mortgage brokers who know this process well.
If you’re facing separation and need help with your home, reach out. The right support makes a big difference.
The Shannon Murree Group | Real Estate With Impact – RE/MAX Hallmark Chay provides inclusive, professional guidance throughout Simcoe County. As the only McGillivray Trusted Agent in Simcoe County for Barrie, Innisfil, Oro, and Orillia, we offer trusted insight, strong community connections, and a no-pressure approach that puts your goals first.
Let’s connect. Your move matters—and we’re here to make it count.
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