29 Jan

GETTING A MORTGAGE AFTER A DIVORCE OR LEGAL SEPARATION

General

Posted by: Peter Paley & Associates

Getting A Mortgage After A Divorce Or Legal Separation:

When clients have decided to divorce or separate, what are their next steps?

It is very important that both clients keep up all credit payments including credit cards, loans, lines of credit and especially their mortgage payments.
They must prepare or have prepared a legal separation agreement. The agreement should be prepared by a lawyer or completed by one of the DIY versions available online and notarized.

The agreement should list how the assets are to be divided and any spousal or child support payable or receivable.

It is very important to note that when clients are planning on selling the marital home that they have the sale proceeds in hand before purchasing a new home. While it is possible to do a bridge loan for the down payment funds, it is usually very difficult to do as both parties would need to agree to and sign the bridge loan document.

If a client is struggling with their down payment, it is possible for them to qualify to withdraw their RRSPs under the HBP – Homebuyer’s Plan without any tax implication.

We are also able to help either party remortgage the marital home with only 5% Down/Equity.

Please watch our video and like it on YouTube and refer to our “Getting A Mortgage After A Divorce Or Legal Separation” handout for more information. Please feel free to share.

Click the link below for our YouTube video!
https://www.youtube.com/watch?v=M-7zhy7sYPs

Please Contact The Mainstream Mortgage Team for more information

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