Can I Refinance and Stay in My Home or Do I Have to Sell?

Author: Boychuk Mortgage Group |

In many cases, the marital home is owned by both parties and is often the most profitable asset that needs to be divided following a separation. Now you may be wondering if it is best to sell your home, or if there is a way you can stay in your home. Let’s look at those two options below.

  • Sell Your Home
  • When selling your home, both parties agree to liquidate your asset and pay out your remaining mortgage balance in full, including a mortgage penalty, and realtor fees. All the left-over funds, also known as your net equity, can be split up as agreed.
  • This step does not require a mortgage advisor, though if you are looking to take that next step with purchasing your next home, reach out to our team and we’d be happy to help you plan for that next big move.
  • Refinance And Stay in Your Home
  • If you decide to buy out your partner and take sole ownership of your home, our team at Boychuk Mortgage Group can help. With a separation mortgage, we will help you buy out your partner, retain the value you’ve built up in your home, and keep that desired stability for you and your family.
  • How Do I Refinance to Stay?
  • When refinancing your home, the party leaving will request a “release of covenant” from the lender and you will “assume the mortgage’ through the process of requalifying. If there is an outstanding net equity balance in the home, you will be able to refinance the mortgage in your own name up to 95% of the homes current value to pay out the other party. This process will result in you registering your new mortgage solely in your name and hopefully includes enough cash to pay out any affairs.
  • It’s important to note that with less than 20% equity left in your home, you will not be able to pull out any additional cash for personal use/debts.