Spousal buyout

Can you keep the house?

Work out what it takes to buy out your former partner's share: the equity owed, the new mortgage in your name, the payment, and roughly the income a lender would want to see.

Rough numbers only. This is a calculator for planning, not an approval or advice. Rates shown are examples you can change. Nothing you type is saved unless you choose to email it to yourself.

The home

Home value

Mortgage balance

Line of credit secured on the home

Your share of the equity

Legal, appraisal and penalty costs (example)

The new mortgage

Example interest rate

Amortization

25 yrs30 yrs

Qualifying on your own

Your income, before tax (incl. support you receive)

Your other monthly debt payments

Property tax / month

Condo fees / month

Buyout owed to your former partner

Total equity
New mortgage in your name
New loan-to-value
Monthly payment
Stress test rate
Income needed to qualify, about
Your income vs needed

Rough numbers for planning only. This isn't an approval, a quote, an offer or advice. Example rates are for the math and aren't rates we're offering. Your lender's policies, your credit and the property change the real answer.

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How to use it

Three steps.

Enter the home and what's owed

A rough value, the mortgage balance and any line of credit secured on the home.

Set the split

Your share of the equity. Your separation agreement or lawyer decides the real number, which can differ from 50/50.

Check the qualifying income

Add your income and debts. The tool estimates whether you'd pass the stress test on your own.

What the numbers mean

Worth knowing.

How a buyout works

Usually you replace the current mortgage with a new one in your name alone. It pays off the old mortgage and any secured debts, and pays your former partner their share of the equity.

Qualifying on one income

Lenders test the new mortgage against your income alone, using the stress test. Support payments you receive may count as income once they're set out in a signed agreement or court order. That's a question to raise with your lender early.

Land transfer tax

Transfers between spouses or former spouses are taxable in Ontario unless an exemption applies. Exemptions include transfers made under a written separation agreement or a court order. Your real estate lawyer confirms which applies.

Free guide

Separation and Your Home

A calm, practical look at your home, your mortgage and your options after a separation.

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FAQ

Good questions.

How much can I borrow to buy out my spouse?

With a conventional refinance, the new mortgage generally can't go past 80% of the home's value. Some lenders and programs treat spousal buyouts differently, so if you're close to the limit, ask before you assume it won't work.

Do I need a separation agreement to do a spousal buyout?

Lenders usually want to see a signed separation agreement or court order that sets out the buyout. It also matters for land transfer tax, since transfers under a written separation agreement or court order can be exempt in Ontario.

Will I have to pass the stress test on my own?

Yes, a new mortgage in your name alone is qualified on your income and debts. The qualifying rate is the greater of your rate plus 2% or 5.25%. This calculator uses that test to estimate the income you'd need.

Does the buyout split include selling costs?

Not unless your agreement says so. Some couples reduce the equity by notional selling costs, and some don't. It's a legal question for your family lawyer, so this tool lets you set the share yourself.