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What divorce means for your mortgage!

April 10th, 2013 Leave a comment Go to comments

What divorce / separation means for your mortgage!

Recently the rules have changed for those people wanting to qualify to take over the mortgage for the matrimonial home owned jointly by a married couple.  Previously this would fall under the refinance guidelines, and if there was not enough equity in the home, the home would have to be sold and the profit split according to the separation agreement.  With the new rules brought about on July 9th, 2012, one can now only refinance to 80% of the value of the home.  This meant if you had to pay out your spouse you would have to have a lot of equity in the home (at least 40%) to ensure 20% equity remained.  This has now changed…..

If you are buying out your spouse, for mortgage purposes, it will be considered under the same rules as purchasing a home ie.  You may increase the mortgage to 95% of the value of your home, this is huge, as this will help you keep your children in the same home, school, neighbourhood etc. If you would like to see if you would qualify to take over your home, you are welcome to complete the online application.  Approvals are valid for 120 days!

If you would like a free report, titled “Separation Mortgage” outlining the guidelines please contact me.

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