Divorce Mortgage Lethbridge Alberta

Commercial mortgages in Alberta, Canada
Divorce Mortgage Broker

Going through separation and divorce is extremely difficult and emotional. 

Financial assets that have been jointly accumulated must be divided upon separation, and the family home is usually the main asset.  

It is important to protect yourself and make preparations to get a divorce mortgage, taking advantage of special guidelines from Canadian government insurers for divorce mortgages.

Apply mortgage Alberta onlineSeparation Process

You continue to be married in the eyes of the court until there is legal documentation stating that you are separated or divorced (Separation Agreement and Parenting Plan when children are involved). 

This documentation outlines asset division, alimony, child support and many others items that affect your ability to obtain mortgage financing. After your divorce, you will have complete control of your finances and must take measures to protect your credit score.  

It is important to continue paying your bills throughout your settlement process, even if you must seek reimbursement later from your spouse.  Equally important is to separate your joint accounts and establish your own bank account. 

You should monitor your credit report, continue to make your payments on time and begin establishing credit on your own. 

Contact Us

Divorce mortgages in Alberta Canada by Jim Black AMP.Divorce Mortgage Options

Next, you must consider your options regarding your current home:

Sell the home:  You will need to consider real estate and moving fee

s as well as penalties from your lender for ending the contract early.  Usually the proceeds from the home are split between the spouses. 

You can then use your equity as down payment on a new home.

One spouse keeps the house:  If this is the case, an appraiser will usually be needed to determine the fair market value of the home.  

The person taking over the home will have to qualify for the mortgage and manage the expenses on their own.

The remaining spouse will need to qualify for the mortgage on a single income.

If both spouses are on the title and the existing mortgage, then both are responsible for paying the mortgage and taxes.  It is imperative to keep payments current with your existing lender until a solution has been worked out.

You should speak to your lawyer about your legal rights and a certified mortgage professional, like Jim Black, about the best options for a mortgage on your current home.

 

Contact Us

Alberta Mortgages

Divorce mortgage in Lethbridge Alberta Canada by Jim Black AMP.

Starting New

Many people prefer a new start after a divorce and buying a new home is part of the process of moving on. 

Lenders won’t provide you with a mortgage until your separation agreement is completed so your future financial obligations are clear(alimony, child support & debts remaining).  

If you will be getting alimony or child support payments, this income can be added to your employment income. 

If you will be making those payments, then that will be considered an ongoing expense and lenders will take that into consideration with their debt-servicing calculations.

Securing Your Future

preapproved mortgage in Calgary, Alberta
Going through a divorce is a very difficult and stressful time but your finances need to be a priority. 

Call Jim Black and his team to help you get your finances in order in preparation for your new start.