Spousal Buyout Mortgage in Ontario (2026): How It Works
Keeping the home after a separation? A spousal buyout mortgage lets you buy out your ex's share — and a special program lets you refinance up to 95% of the home's value.
Keeping the home after a separation? A spousal buyout mortgage lets you buy out your ex's share — and a special program lets you refinance up to 95% of the home's value.
When a relationship ends and one partner wants to keep the home, the equity has to be divided — and that usually means refinancing to pay out the departing spouse. A spousal buyout mortgage is built for exactly this, and a special program lets you access more equity than a normal refinance allows. Here's how it works in Ontario.
The short answer
A spousal buyout mortgage refinances your home so you can pay your ex-partner their share of the equity and take sole ownership. Under the insured spousal-buyout program, you can refinance up to 95% of the home's value (versus the usual 80% refinance limit) — but only to buy out the other spouse, and a signed separation agreement is required. See spousal buyout options.
Why it's different from a normal refinance
A standard refinance caps you at 80% of your home's value. The spousal buyout program is an exception: because the purpose is to settle a matrimonial split (treated like a purchase), insured financing allows up to 95% of the value. That extra room is often the difference between keeping the home and having to sell it.
How it works, step by step
- Get a separation agreement. A signed agreement specifying who keeps the home and the buyout amount is required.
- Determine the home's value. An appraisal sets the figure the buyout is based on.
- Calculate the buyout. Typically the departing spouse's share of the equity, per the agreement.
- Qualify on your own. You must carry the new mortgage on your income alone and pass the stress test.
- Refinance and pay out. The new mortgage pays off the old one and funds the buyout; title transfers to you.
What you'll need to qualify
- A signed separation agreement detailing the buyout.
- Income to carry the mortgage solo (the stress test applies).
- Reasonable credit— if yours took a hit during the split, see rebuilding credit.
- An appraisal of the home.
The buyout proceeds can also be used to pay out joint debts as part of the settlement, which can simplify a clean break.
If you don't qualify alone — yet
Qualifying on one income is the hardest part. If you're close, options include extending amortization to lower the payment, adding a co-signer, or, in tighter cases, a short-term private mortgage to complete the buyout now and refinance to a prime rate once your finances stabilize. A broker will tell you honestly whether keeping the home is realistic.
Frequently asked questions
How much can I borrow with a spousal buyout mortgage?
Up to 95% of the home's appraised value under the insured spousal-buyout program — more than the standard 80% refinance limit — but only to buy out the other spouse, with a signed separation agreement.
Do I need a separation agreement?
Yes. A signed separation agreement specifying the buyout is required for the program, and it documents the amount being paid out.
Can I use the buyout to pay off joint debts?
Often yes — the program can allow proceeds to settle joint debts as part of the matrimonial settlement, subject to the agreement and lender rules.
What if I can't qualify on my own income?
Options include a longer amortization, a co-signer, or a short-term private mortgage as a bridge, then refinancing to a prime rate later. A broker can map the path.
Keeping the home after a separation? Talk to us confidentially — we handle spousal buyouts regularly and will tell you what's possible on your income.
Mortgage content produced by Mortgage Squad Advisors' team of FSRA-licensed mortgage advisors and reviewed under the supervision of the brokerage's Principal Broker (FSRA Brokerage #13737) before publication.