Tuesday 25 September 2012

Separations happen! Mortgage Wise is here to make it easier for you!

Separations Happen!

Writing this particular blog is ironic as I have my wedding in 18 days!  But it is important for people to know about their options when it comes to separation and divorce.

Going through a separation or divorce can be one of the most difficult periods in anyone’s life.

In addition to the heartbreaking end of a marriage, there are often difficult decisions that need to be made.  Where do the kids live?  How do you divide up the assets?

If you also own a matrimonial home you will certainly have other questions.

Who gets the house?  Can I possibly remain in my home?

Is there enough equity built up so that we can refinance to consolidate or pay out matrimonial debts and / or facilitate a buy out of my spouse?

The new mortgage rules effective July 2012 restrict the refinancing of one’s home to a maximum of 80% of the home’s value.

HOWEVER…there is a way to finance up to 95% of your homes value!

CMHC and Genworth Financial Canada, both suppliers of mortgage default insurance in Canada, will now consider applications for one spouse to buy the matrimonial home from the other spouse with financing available up to 95% of the home’s value.

Mortgage Wise can help.

Here is what we will need;

  1. A Private purchase and sale agreement signed by both parties
  2. A finalized divorce / separation agreement
  3. A statutory declaration signed by the spouse who is relinquishing interest in the property
  4. Lender may request additional support documentation depending on your individual situation and an appraisal may be required.

You have the questions.  We have the answers!

Thanks for visiting!

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