Divorce Mortgage for Spousal Buyout

It is unfortunate, but more and more people are going for a divorce or going their separate ways when their relationship ends. Often the stress of work, the commitments with the children and overcharged routine make couple life difficult. That is why so many people opt for the buyback of share due to a proceeding of divorce or separation.

What is a spousal buyout mortgage due to divorce or separation?

This is when an individual refinances the property to remove a spouse from the title of the property (simple covenant) or with the goal paying of any joint debts and handing over some equity to an ex-spouse. In other words, you remove their name from the property, and you become the sole owner, while paying off any mutual debts you possess. Whatever equity remains is split 50%-50% or to any agreement you might have. In these sorts of situations simplicity and straightforwardness will be the least expensive and most rewarding approach.

What affects the ability to get a divorce mortgage for spousal buyout?

There are 3 things to consider:

1. Income
2. Credit rating
3. The equity of the property

The first thing required is having good income to support the mortgage on your own. This also depends on your ability to refinance for a higher loan amount than what you currently owe.

If at the initial purchase it required both your ex-spouse and your own income to qualify for the mortgage, it might be difficult to carry the property on your own. You might need to consider selling the property and downsizing. Fill out our online application to find out more about your borrowing capacity!