Getting separated is never easy; if you and your former spouse own property, deciding what to do with the matrimonial home and joint debts can seem like a daunting task. It’s important to find the right guidance for mortgage finance after a separation.
What to consider after your separation
The main questions you need to ask yourself are; will I be buying a new property or staying in the existing one?
In the event you’ll be purchasing a new home, here are some things for you to consider:
- Will one party be keeping the existing house, or will it be sold?
What can I afford relative to my current financial situation?
How will I secure a down payment for a new property?
Why you should work with a professional
All your mortgage finance questions answered
If you decide to refinance your home: Can the equity in the property be used to consolidate your joint liabilities, and is there enough to provide a payout to the other party is one is required?
By working with a mortgage broker like myself, I can help you navigate whatever scenario best applies to your unique situation, all while coaching you to maintain a positive credit rating.
A traditional refinance would limit the access of equity in your property to 80% of its value (minus the mortgage), however I have access to programs that will allow you to free up the equity to 95% of the homes value, all while maintaining AAA rates.
I have access to lenders who will use 100% of the child tax benefit, child support and spousal support you receive, in addition to your income to qualify you for a larger mortgage if required.
Exploring your options
Outside the big 6 banks who may say you now don’t qualify for a mortgage alone, there are many other options for you to remain in the home you love, or to purchase your future home by working with a broker and utilizing special financing programs.
Tim Ward, Collingwood Mortgage Broker.
