The Post-Divorce Mortgage: Tips to Help You Set Up After You Split Up

Marci • February 1, 2015

When it comes to divorce, there are many things people have to consider in order to protect themselves and ensure that their future will be brighter. Splitting assets, such as a home, is something you should pay special attention to, especially with the high value of Vancouver real estate. If you are on the hunt for a post-divorce mortgage, here are some tips to consider.

Staying in the Home: Buying Out and Refinancing

Just because you’re going through a divorce doesn’t mean you’ll necessarily want to give up your home. Especially if children are involved, you may wish to stay in the home you love. Divorce doesn’t always mean having to divorce your home, after all. Instead, you can opt to stay in the home by buying out your ex-spouse and taking out a mortgage to refinance the home in solely your name. If this is the best option for you, you should ensure that your spouse will need to agree to be removed from the Title to the home signs a quitclaim deed, which will mean they relinquish their rights to the home. The terms of this are generally agreed to and included in the Separation Agreement. If you are securing a new mortgage to buy out your spouse, the Bank will need to review this agreement. It will most likely be a condition of your new mortgage approval that the Separation agreement is signed off and court approved.

If Your Spouse Wants to Keep the Home

If your spouse, on the other hand, wishes to stay in the home and you are ready to move on, you should ensure that they buy out your share of the home’s equity, and that you are protected and relieved from the responsibilities of the home. If your name is still on the deed title, you are responsible should your spouse default on the mortgage. Therefore, take extra care to ensure that your name is removed from the deed or title and any existing mortgage. A Deed of Trust to Secure Assumption is a document you can consider having your spouse sign, which will allow you to take back ownership of the house if your spouse defaults. This will also allow you to foreclose on the home, if necessary.

Selling the House and Splitting the Equity

Often, neither of the parties will wish to stay in the home after divorce, in which case the home will be sold and the assets will be split as agreed upon. While the property’s true value, mortgage penalties, and real estate fees should all be taken into account, each party should understand the process of getting a post-divorce mortgage. A pre-approval will still be required, this time based on your sole income. If alimony or child support is a part of the divorce agreement, a lender could require up to three months of deposited funds before approving your application. Again the Separation Agreement will be important here and may be required by the bank in order to secure an new mortgage approval.

Regardless of which route you and your spouse wish to take when going through a divorce and starting your lives again separately, it is important to do your research and understand the process thoroughly. Always ensure that you’ve spoken to a professional about your situation, and be sure you put measures in place that will protect you. After you’ve done all of the necessary due-diligence, you will be well on your way to getting yourself set up for a brighter future and a new beginning. If you’re in this situation or are dealing with other homeownership issues, send us an email today.

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Breaking Down the Real Costs of Homeownership

By Marci Deane • November 26, 2025
Don’t Forget About Closing Costs When planning to buy a home, most people focus on saving for the down payment. But the truth is, that’s only part of the equation. To actually finalize the purchase, you’ll also need to budget for closing costs —the out-of-pocket expenses that come up before you get the keys. Closing costs can add up quickly, which is why they should be part of your pre-approval conversation right from the start. Lenders will even require proof that you’ve got enough funds set aside. For example, if you’re getting an insured (high-ratio) mortgage, you’ll need at least 1.5% of the purchase price available in addition to your down payment. That means a 10% down payment actually requires 11.5% of the purchase price in cash to make everything work. Let’s break down some of the most common expenses you should prepare for: 1. Home Inspection & Appraisal Inspection : Paid by you, this gives peace of mind that the property is in good shape and doesn’t have hidden problems. Appraisal : Required by the lender to confirm value. Sometimes this is covered by mortgage insurance, sometimes by you. 2. Legal Fees A lawyer or notary is required to handle the title transfer and make sure the mortgage is properly registered. Legal fees are often one of the larger closing costs—unless you’re also responsible for property transfer tax. 3. Taxes Many provinces charge a property or land transfer tax based on the home’s purchase price. These fees can range from hundreds to thousands of dollars, so you’ll want to factor them in early. 4. Insurance Property insurance is mandatory—lenders won’t release funds without proof that the home is insured on closing day. Optional coverage like mortgage life, disability, or critical illness insurance may also be worth considering depending on your financial plan. 5. Moving Costs Whether you’re renting a truck, hiring movers, or bribing friends with pizza and gas money, moving comes with expenses. Cross-country moves especially can be surprisingly pricey. 6. Utilities & Deposits Setting up new services (electricity, water, internet) can involve connection fees or deposits, particularly if you don’t already have a payment history with the utility provider. Plan Ahead, Stress Less This list covers the big-ticket items, but every purchase is unique. That’s why it pays to have an accurate estimate of your personal closing costs before you make an offer. If you’d like help planning ahead—or want a breakdown tailored to your situation—let’s connect. I’d be happy to walk you through the numbers and make sure you’re fully prepared.

Why a Mortgage Pre-Approval Protects Both Your Head and Your Heart

By Marci Deane • November 19, 2025
Why a Mortgage Pre-Approval Protects Both Your Head and Your Heart There’s no denying it—buying a home is an emotional journey. In a competitive market, it can feel like you need to stretch beyond your comfort zone or bid above asking just to have a chance. That pressure can make it hard to separate what you want from what you can realistically afford. One of the biggest pitfalls buyers face is falling in love with a home that’s outside their price range. Once that happens, every other property seems like a compromise—even the ones that might have been a perfect fit otherwise. The best way to avoid this heartache? Get pre-approved before you start shopping. What a Pre-Approval Does for You A mortgage pre-approval gives you more than just a number—it provides clarity, confidence, and protection: Know your buying power : Shop within your true price range and avoid disappointment. Spot potential roadblocks : Uncover issues like credit bureau errors before you make an offer. Get organized : Learn exactly what documentation you’ll need so there are no surprises. Lock in a rate : Many lenders hold your rate for 30–120 days, giving you peace of mind if rates rise. Save yourself heartache : Protect yourself from falling for a home you can’t afford. Head vs. Heart Buying a home is about balance. Your head tells you what’s financially sound, your heart tells you what feels right—and both matter. A pre-approval helps bring those two sides together, so you can make confident choices without emotional stress clouding your judgment. The Bottom Line Looking at properties for fun is one thing—but if you’re serious about buying, a pre-approval is the smartest first step you can take. It sets realistic expectations, saves time, and protects your emotions along the way. If you’d like to explore your options and get pre-approved, I’d be happy to walk through the process with you. Let’s make sure you’re ready to shop with confidence.

Co-Signing a Mortgage in Canada: Pros, Cons & What to Expect

By Marci Deane • November 12, 2025
Co-Signing a Mortgage in Canada: Pros, Cons & What to Expect Thinking about co-signing a mortgage? On the surface, it might seem like a simple way to help someone you care about achieve homeownership. But before you sign on the dotted line, it’s important to understand exactly what co-signing means—for them and for you. You’re Fully Responsible When you co-sign, your name is on the mortgage—and that makes you just as responsible as the primary borrower. If payments are missed, the lender won’t only go after them; they’ll come after you too. Missed payments or default can damage your credit score and put your financial health at risk. That’s why trust is key. If you’re going to co-sign, make sure you have a clear picture of the borrower’s ability to manage payments—and consider monitoring the account to protect yourself. You’re Committed Until They Can Stand Alone Co-signing isn’t temporary by default. Even once the initial mortgage term ends, you won’t automatically be removed. The borrower has to re-qualify on their own, and only then can your name be taken off. If they don’t qualify, you stay on the mortgage for another term. Before agreeing, talk openly about expectations: How long might you be on the mortgage? What’s the plan for eventually removing you? Having these conversations upfront prevents surprises later. It Affects Your Own Borrowing Power When lenders calculate your debt service ratios, the co-signed mortgage counts as your debt—even if you never make a payment on it. This could reduce how much you’re able to borrow in the future, whether it’s for your own home, an investment property, or even refinancing. If you see another mortgage in your future, you’ll want to consider how co-signing could limit your options. The Upside: Helping Someone Get Ahead On the positive side, co-signing can be life-changing for the borrower. You could be helping a family member or friend buy their first home, start building equity, or take an important step forward financially. If handled with clear expectations and trust, it can be a meaningful way to support someone you care about. The Bottom Line Co-signing a mortgage comes with both risks and rewards. It’s not a decision to take lightly, but with careful planning, transparency, and professional advice, it can be done responsibly. If you’re considering co-signing—or want to explore safer alternatives—let’s connect. I’d be happy to walk you through what to expect and help you decide if it’s the right move for you.