Separation Mortgages in Ontario: What You Need to Know

Separation and divorce can be stressful, especially when a shared home is involved. A separation mortgage helps one partner stay in the home, buy out the other, or refinance to move forward independently. Mortio Financial supports Ontario homeowners through this process with clarity and expert guidance.

A separation mortgage isn’t a special product—it’s the act of refinancing during a separation so one partner can take over the mortgage and remove the other from liability. This is often used when one person wants to stay in the home rather than sell or co-own temporarily.

To qualify, lenders look at income, credit score, home equity, and debt levels to ensure the remaining partner can comfortably carry the mortgage alone. Self-employed or complex-income borrowers may still qualify with proper documentation. The process typically involves determining the home’s value, agreeing on a buyout amount, applying for refinancing, and completing legal title changes. Private lenders can also assist when fast or flexible financing is needed.

While a separation mortgage provides a clean financial transition, it’s important to consider the risks—taking on full responsibility for the mortgage, potential higher rates, and legal or appraisal costs. Professional advice helps protect both partners and ensures a smooth, fair outcome.

A separation mortgage can be an effective solution for keeping your home and restructuring your finances after separation.

Mortio Financial guides you through your options so you can move forward with confidence.