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My ex and I own the house together. Can I buy them out and keep it?
Answered by Rajiv Verma, Mortgage Broker · Reviewed 18 August 2026 · About a 4 minute read
The direct answer
Yes — and there’s a specific programme built for exactly this. Normally you can only refinance up to 80% of your home’s value. A spousal buyout goes to 95%, insured, because it’s treated as a purchase rather than a refinance. That extra room is often the whole difference between keeping the house and selling it. You’ll need a signed separation agreement spelling out who gets what, and you have to qualify on your income alone.
THE SHORT VERSION
- Normal refinance: 80% of value. Spousal buyout: 95%, insured.
- It works because the buyout is treated as a purchase, not a refinance
- You need a signed separation agreement setting out who gets what
- You must qualify on your own income — this is the real test
- The extra 15% of value is frequently what makes it possible at all
Why the 95% matters so much
Run the arithmetic and it becomes obvious.
Say the home is worth $800,000 with $400,000 owing, and you need to pay your ex roughly half the equity — about $200,000.
| Normal refinance (80%) | Spousal buyout (95%) | |
|---|---|---|
| Maximum mortgage | $640,000 | $760,000 |
| Less existing mortgage | –$400,000 | –$400,000 |
| Available to buy out | $240,000 | $360,000 |
Illustrative only, before fees. Every file is reviewed individually.
On this example both routes work. Move the numbers — less equity, a bigger share to pay out, a higher balance — and the 80% route runs out long before the 95% one does. That’s the gap where most “we’ll have to sell” conversations actually happen.
What you need
A signed separation agreement. Not a conversation, not an understanding — a document that spells out who gets what. Lenders will not proceed without it, and getting it drafted properly is a family lawyer’s job.
Income that qualifies on its own. This is the part people underestimate. The mortgage that two incomes carried now has to be carried by one. Support payments can count toward that, with proof.
An appraisal. The buyout is calculated from appraised value, not from what either of you thinks the house is worth.
When it doesn’t work — and what then
When the income doesn’t stretch. The honest test is whether one income carries the new payment with something left over. If it’s tight from day one, it doesn’t get easier.
When the agreement isn’t finalised. Timing frustrates people, but the document has to exist first.
When credit was damaged during the split. Common, and not necessarily the end of it — alternative and private lenders can bridge a year or two.
If none of that lands, a short-term private mortgage can buy time rather than forcing a sale on someone else’s timetable. Selling is only one option.
What to check
- A realistic value, and the exact mortgage balance
- What the separation agreement says about the property — and whether it’s signed
- Whether one income carries the new payment comfortably
- Whether there’s a penalty on the existing mortgage
- All the costs — legal, appraisal, insurance premium, registration
What to do next
Send me the value, the balance, your income and where the agreement stands. I’ll tell you whether the buyout is realistic on your numbers, and what the payment would actually be.
It’s worth knowing before anyone talks about listing the house.
Related questions
- We’re both on the mortgage but I moved out. Am I still on the hook?
- Can I use child support or spousal support as income to qualify?
- Do we have to sell the house, or are there other options?
Answered by Rajiv Verma, Mortgage Broker · Mortgage Architects — FSRA Brokerage Licence #12728 · Licensed in Ontario · Office 289.505.0631 · Direct 647.291.7116
General information about Ontario mortgages — not financial, legal or family law advice. Speak to a family lawyer about your separation agreement. Insurer and lender guidelines vary and change. Every file is reviewed individually. Figures shown are illustrative.