Beyond Divorce: Elevate Your Future with Strategic Mortgage Choices

Jamie Ushko • December 19, 2023

Embarking on the journey of separation or divorce is undoubtedly one of life's most challenging moments, both emotionally and financially. None of us enters a marriage or home purchase anticipating the need to untangle the life we've woven together. Unfortunately, for 38% of married couples in Canada, this becomes a harsh reality.


Managing finances and determining the fate of the family home during this period can be overwhelming, adding a unique set of stressors to an already difficult situation. Each individual's circumstances vary, and obtaining a mortgage after or during a divorce is influenced by numerous factors. In this discussion, I'll outline some options and considerations to help you transition smoothly, always keeping in mind that these are mortgage-centric options that should be discussed with your legal advisor to ensure alignment with your overall strategy.


To Keep or To Sell

The decision to keep or sell the home is highly individual. In most divorces, one party wishes to retain the family home. If that person qualifies to take over the mortgage, it's a straightforward process. Here are a few routes to explore:


Option 1 - Remove Ex from Mortgage and Title: If you can manage the existing debt, this is the easiest path. You can do this with your current lender or switch to a new one, with the option of adding a co-signer if needed. Note that you won't be extracting funds from the property in this option, so any financial settlements or payouts to your ex would need to come from savings or alternative sources.


Option 2 - Refinancing: This process allows a complete restructuring of the mortgage. You can adjust parameters, such as pulling out funds to settle with your ex, extending the amortization to lower payments, and changing lenders or mortgage products. Keep in mind that during refinancing, a certain equity stake (usually 20%) must be retained in the property.


Option 3 - Spousal Buy-Out: If you lack the required equity for refinancing or need to pay out more than available, a spousal buy-out lets you purchase the house from your ex. This involves starting afresh, with existing equity as your down payment and the ability to borrow up to 95% of the home's market value.


Qualifying Considerations

Several factors impact your mortgage eligibility during a divorce. A signed separation or divorce agreement is essential, outlining spousal and child support, property distribution, and any financial settlements. Keep in mind that support payments, whether received or paid, affect your debt servicing ratios. If you're receiving support, it can be considered as part of your income.


RRSP Withdrawal and First Time Home Buyer Incentive: For the first property purchased post-divorce, you qualify for the First Time Home Buyers Plan RRSP withdrawal and the First Time Home Buyers Incentive. These programs offer financial advantages and support for your transition.


Moving On: Moving on, both figuratively and physically, is undoubtedly easier said than done. Surrounding yourself with the right resources—lawyers, counselors, realtors, and a reliable mortgage broker—will set you on the path to success as you transform your house back into a home. Remember, these strategies are tailored for your unique journey and should align with your broader legal and financial considerations.

Jamie Ushko

Mortgage Broker

Bank of Canada Holds Rate at 2.25% — July 15, 2026

By Jamie Ushko • July 15, 2026
The Bank of Canada announced today that it is holding its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. The tone of today's announcement is notably more optimistic than previous months. Here's what's changed and what it means for you.

Employment and Mortgage Qualification: What Lenders Look For

By Jamie Ushko • July 8, 2026
When you apply for a mortgage, your employment history and status carry a lot of weight. Even if you feel secure in your job, lenders need proof that your income is reliable and will continue. To them, your employment status is one of the strongest indicators of whether you can make your mortgage payments long term. Here’s how lenders typically view different employment situations: Permanent Employment This is the gold standard. Once you’ve passed any probationary period and hold permanent status, lenders see you as a lower risk. It shows that your employer is committed to you, and your income is steady. Probationary Periods If you’re still on probation—usually 3 to 6 months, though sometimes longer—lenders may hesitate. That’s because your employer can end your contract without cause during this period. Once probation is over, you’re considered more secure. That said, context matters. If you’ve worked with the same company for years as a contractor and just transitioned into full-time employment, lenders may accept a letter from your employer confirming that probation is waived. Documentation is key here. Parental Leave Being on or about to take parental leave doesn’t mean you can’t qualify for a mortgage. As long as you have a letter from your employer guaranteeing your position and return-to-work date, lenders can use your regular salary—not your leave income—when assessing your application. Term Contracts This is one of the trickiest categories. Even highly skilled professionals with strong incomes can face challenges here. A term contract has a start and end date, which makes lenders question the stability of your future income. To use term-contract income, lenders generally want to see at least two years of history, or proof that your contract has already been renewed. The more evidence you can show of consistent employment, the stronger your case will be. The Bottom Line If you’re planning to apply for a mortgage, it’s important to understand how your employment status could affect your approval. Whether you’re starting a new job, coming back from leave, or working under contract, lenders want documentation that proves your income is reliable. 📞 If you’ve recently changed jobs or are planning a career shift, let’s connect. I can help you prepare your file so you qualify with confidence and avoid surprises in the approval process.