Separation & Your Mortgage: What Ontario Homeowners Need to Know

Going through a separation is emotional — and when you own a home together, the financial side can feel overwhelming. Who keeps the house? What happens to the mortgage? Can you qualify to keep it on your own?Let’s break it down step by step.

1. Understand Your Current Mortgage

Start by pulling your current mortgage statement. Know your:

• Balance owing

• Current rate and term

• Renewal date

• Any penalties if you need to refinance or break the term

This gives you a clear starting point for your next move.

2. Determine Your Home’s Equity

You’ll need to know what your home is worth today. A professional appraisal or market evaluation from a realtor can determine your fair market value.Subtract your mortgage balance — the remainder is your equity. This number is crucial for dividing assets or buying out your spouse.

3. Review Income and Debts Separately

During a separation, lenders look at individual income and debt. That means your personal:

• Employment income or self-employment income

• Child/spousal support payments (paid or received)

• Credit score and outstanding debt

Tip: If support payments are being received, ensure they’re clearly outlined in your separation agreement — lenders require documentation.

4. Protect Your Credit

Keep all joint payments (mortgage, credit cards, car loans) current during the process. Missed payments will affect both credit scores — and your future ability to qualify.

5. Plan Your Next Move Early

Whether you plan to refinance, buy out your spouse, or purchase something new, talk to a mortgage professional early. We can run the numbers and help you see what’s possible before you make final decisions.

Bottom Line:You don’t have to navigate separation and mortgages alone. Getting mortgage advice early can save you stress, money, and heartbreak later.