Keeping the home after a separation? You can buy out your ex with as little as 5% equity.
The Spousal Buyout Program treats your refinance as a purchase — so you can borrow up to 95% of the home's value, not the usual 80%, to pay out your former partner’s share.
Up to 95% LTVTreated as a purchaseOne income qualifiesSupport counts as incomeRemoves ex from title100% confidential
Separation is hard enough without losing the home on top of it. Here’s what most people are never told: a normal refinance caps out at 80% of your home’s value, which means if you don’t have a big equity cushion you simply can’t pull out enough to pay your ex their share. The Spousal Buyout Program changes that completely — it treats the buyout as a purchase, letting you finance up to 95% of the value. With a signed separation agreement and enough income to carry the home on your own, you can keep the house, remove your former partner from title and the mortgage, and move forward — often with little or no cash out of pocket.
What you get
Why Canadians choose Mortgage Squad Advisors.
Refinance up to 95% of the home’s value (vs. the standard 80% refinance ceiling)
The buyout is treated as a purchase under Sagen, Canada Guaranty, and CMHC programs
Pay out your former partner’s equity share and any joint debts named in the agreement
Remove your ex from both title and the mortgage in one transaction
Qualify on your own income — child and spousal support can count toward qualifying
Keeps the kids in their home and school during an already-disruptive time
Standard insured pricing — competitive A-lender rates, not a penalty product
B-lender or private fallback if credit was damaged during the separation
We coordinate directly with your family lawyer so the financing matches the agreement
All lender + broker fees disclosed in writing upfront
Maya · 24/7 AI advisor
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We need (or help your lawyer finalize the wording for) a signed separation agreement that states you’re keeping the home and the buyout amount. Send us the home value, the current mortgage balance, and your income. We confirm whether the 95% program fits and what you’ll qualify for — usually within 24 hours.
2
Structure the buyout
We size the new mortgage to pay out the existing mortgage and your ex’s agreed share (plus any joint debts the agreement assigns to the home). Insured 95% program where you need the reach; conventional refinance if you have more equity. If support income is involved, we package the proof lenders require.
3
Fund + fresh start
Your lawyer registers the new mortgage, pays out your former partner, and removes them from title. You walk away as the sole owner with one mortgage in your name. We set a review for your next renewal so you’re never stuck on a rate that no longer fits your single-income reality.
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What exactly is the Spousal Buyout Program?
It’s a default-insured program (offered through Sagen, Canada Guaranty, and CMHC) that lets one partner refinance the matrimonial home up to 95% of its value specifically to buy out the other partner’s interest. The key is that it’s treated as a purchase rather than a refinance, which is why you get the 95% reach instead of the normal 80% refinance limit. It exists precisely so families don’t have to sell the home just to divide its equity.
Do I really need a signed separation agreement?
Yes — it’s mandatory for the 95% program. The agreement must clearly state that you are retaining the property and specify the buyout amount. Lenders use it to confirm the funds are going to a legitimate spousal buyout, not a cash-out refinance in disguise. If you don’t have one yet, we’ll coordinate with your family lawyer on the wording lenders need before you finalize it.
Can I use the funds for anything other than the buyout?
Under the 95% program, no — the proceeds can only pay out the existing mortgage and the other party’s share of equity (plus any joint debts the separation agreement assigns to be paid from the home). You can’t use it to consolidate unrelated debt or take extra cash. If you need broader access, we’d look at a conventional 80% refinance instead and compare the two.
Can I qualify on just my income now?
That’s the real test. The home now has to be carried by you alone, so lenders apply the standard debt-service ratios and stress test to your income. The good news: court-ordered or agreement-based child and spousal support you receive can count as qualifying income, usually with proof you’ve been receiving it for 3-6 months and that it will continue. We’ll model your ratios before you commit so there are no surprises.
Does support I pay hurt my qualifying?
It can. If you’re the one paying child or spousal support, lenders treat those payments as a monthly obligation that reduces how much mortgage you can carry — similar to a loan payment. We factor it in from the start and, where it’s tight, look at the structures (or lenders) that treat support most favourably.
What if my credit took a hit during the separation?
Very common — joint accounts, missed payments during the chaos, a temporary income gap. If your credit no longer qualifies for the insured program, B-lenders and private lenders can still fund the buyout on an equity basis, and we map your exit back to A-lender pricing once things stabilize. The home doesn’t have to be lost over a rough credit patch.
Can I buy out my ex if we’re not legally married?
Yes — common-law and unmarried co-owners can use the program too. What matters to lenders is the ownership and the agreement dividing it, not the marital label. A cohabitation or separation agreement specifying the buyout serves the same purpose as a married couple’s.
How is the home’s value determined?
The lender orders an appraisal to establish current market value, and the 95% is calculated against that figure. Sometimes the value in your separation agreement differs from the appraisal — we’ll flag that early because the financing is based on the appraised number, and a gap can affect how much you can actually pull out.
What does it cost compared with a normal refinance?
Because the 95% program is insured, you pay a default-insurance premium (added to the mortgage), but in exchange you get competitive A-lender interest rates — it’s not a high-rate product. For many people the insured premium is far cheaper than the alternative of selling the home, paying realtor commissions, and re-entering the market as a single buyer at today’s prices.
How long does the whole process take?
Once you have a signed agreement and we have your documents, a clean insured file typically funds in 2-4 weeks — similar to a purchase. The most common delay is the separation agreement wording, which is why we get involved with your lawyer early so the financing and the legal side line up the first time.
