Love is uncertain, your finances aren’t – what to do when the love is gone (Part 2 of 2)

Marci • April 30, 2012

In the last post , we covered listing assets and liabilities, and working out your monthly cash flow, when dealing with a separation. Now we move forward with steps that are less tedious, but more emotional. Remember, your life is moving forward through this process.

 

STEP THREE – Make copies of ALL important paperwork: Bills, insurance, mortgage documents, all of it. You need to sort your files, drawers and cabinets. This is not a time for misplaced or lost documents – you may need them in settlement proceedings.   This step is crucial to your ability to speak about your financial and personal affairs. While it sounds daunting (it will be time consuming) you may be surprised how therapeutic it can be to put your paperwork in order. If necessary, hire an organizer to help.

STEP FOUR – Talk to your Spouse: This may be the hardest step of all.   You need to decide how to divide the assets and liabilities. In a perfect world, together you will reach an agreement on who is moving out of the house or if you are selling, as well as custody of the kids and / or pets. However, given that emotions run high, you will likely need to involve a neutral third party.   Getting to this division of assets and liabilities as well as custody and other agreements may require lawyers, or perhaps a mediated process. It is very rare for couples to settle matters without some outside guidance. Choose what works best for both of you and follow through with what you are advised to do.   Steps one and two will go a long way towards helping you move through this step smoothly.

 

Factors to consider throughout all four steps:

Alimony and Support: After the separation, one of you may receive monthly payments from the other. Keep in mind that any money you receive will help you qualify for a future mortgage. It is important to have these payments documented and recorded on your monthly bank statements.   If you are paying your spouse, make sure that your payments are well documented. Most lenders understand support payments and treat them fairly.

Mortgage: If your family home and mortgage are in both of your names, you have probably wondered, “what will happen to the house?”

Don’t panic. Sit down with a mortgage professional and run some numbers. With an estimate of your monthly cash flow (thank goodness we took care of that in step two), your mortgage broker will show you how much you can afford to borrow on your own. Remember, alimony and support can help you to qualify for a mortgage.   If your mortgage is not in both names, you will definitely need financial and legal advice to ensure the separation is fair to both of you.

Like all things, this too shall pass. At times, the process of separating a relationship and finances may feel like a never ending, painful journey. These few brief paragraphs certainly simplify the financial aspect, but it can be a long and difficult one. Remember to take time for yourself. Make a commitment to do things you enjoy and the rest of this “work” will be easier.

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Bank of Canada Holds Rate at 2.25% — March 18, 2026

By Marci Deane • March 18, 2026
The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. For anyone watching the mortgage market — whether you're renewing, purchasing, or simply keeping an eye on borrowing costs — here's a breakdown of what was announced and what it may mean for you.

Is Now the Right Time to Buy? A Look at Canada's 2026 Housing Market

By Marci Deane • March 17, 2026
For many Canadians, the dream of homeownership has felt like a moving target. After years of market volatility, shifting interest rates, and economic uncertainty, you might be wondering: is 2026 finally the year to make a move?

Everything You Should Know Before Buying a Home

By Marci Deane • March 11, 2026
Thinking About Buying a Home? Here’s What to Know Before You Start Whether you're buying your very first home or preparing for your next move, the process can feel overwhelming—especially with so many unknowns. But it doesn’t have to be. With the right guidance and preparation, you can approach your home purchase with clarity and confidence. This article will walk you through a high-level overview of what lenders look for and what you’ll need to consider in the early stages of buying a home. Once you’re ready to move forward with a pre-approval, we’ll dive into the details together. 1. Are You Credit-Ready? One of the first things a lender will evaluate is your credit history. Your credit profile helps determine your risk level—and whether you're likely to repay your mortgage as agreed. To be considered “established,” you’ll need: At least two active credit accounts (like credit cards, loans, or lines of credit) Each with a minimum limit of $2,500 Reporting for at least two years Just as important: your repayment history. Make all your payments on time, every time. A missed payment won’t usually impact your credit unless you’re 30 days or more past due—but even one slip can lower your score. 2. Is Your Income Reliable? Lenders are trusting you with hundreds of thousands of dollars, so they want to be confident that your income is stable enough to support regular mortgage payments. Salaried employees in permanent positions generally have the easiest time qualifying. If you’re self-employed, or your income includes commission, overtime, or bonuses, expect to provide at least two years’ worth of income documentation. The more predictable your income, the easier it is to qualify. 3. What’s Your Down Payment Plan? Every mortgage requires some amount of money upfront. In Canada, the minimum down payment is: 5% on the first $500,000 of the purchase price 10% on the portion above $500,000 20% for homes over $1 million You’ll also need to show proof of at least 1.5% of the purchase price for closing costs (think legal fees, appraisals, and taxes). The best source of a down payment is your own savings, supported by a 90-day history in your bank account. But gifted funds from immediate family and proceeds from a property sale are also acceptable. 4. How Much Can You Actually Afford? There’s a big difference between what you feel you can afford and what you can prove you can afford. Lenders base your approval on verifiable documentation—not assumptions. Your approval amount depends on a variety of factors, including: Income and employment history Existing debts Credit score Down payment amount Property taxes and heating costs for the home All of these factors are used to calculate your debt service ratios—a key indicator of whether your mortgage is affordable. Start Early, Plan Smart Even if you’re months (or more) away from buying, the best time to start planning is now. When you work with an independent mortgage professional, you get access to expert advice at no cost to you. We can: Review your credit profile Help you understand how lenders view your income Guide your down payment planning Determine how much you can qualify to borrow Build a roadmap if your finances need some fine-tuning If you're ready to start mapping out your home buying plan or want to know where you stand today, let’s talk. It would be a pleasure to help you get mortgage-ready.