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

Mortgages Aren’t One-Size-Fits-All

By Jamie Ushko • October 15, 2025
Why the Cheapest Mortgage Isn’t Always the Smartest Move Some things are fine to buy on the cheap. Generic cereal? Sure. Basic airline seat? No problem. A car with roll-down windows? If it gets you where you're going, great. But when it comes to choosing a mortgage? That’s not the time to cut corners. A “no-frills” mortgage might sound appealing with its rock-bottom interest rate, but what’s stripped away to get you that rate can end up costing you far more in the long run. These mortgages often come with severe limitations—restrictions that could hit your wallet hard if life throws you a curveball. Let’s break it down. A typical no-frills mortgage might offer a slightly lower interest rate—maybe 0.10% to 0.20% less. That could save you a few hundred dollars over a few years. But that small upfront saving comes at the cost of flexibility: Breaking your mortgage early? Expect a massive penalty. Want to make extra payments? Often not allowed—or severely restricted. Need to move and take your mortgage with you? Not likely. Thinking about refinancing? Good luck doing that without a financial hit. Most people don’t plan on breaking their mortgage early—but roughly two-thirds of Canadians do, often due to job changes, separations, relocations, or expanding families. That’s why flexibility matters. So why do lenders even offer no-frills mortgages? Because they know the stats. And they know many borrowers chase the lowest rate without asking what’s behind it. Some banks count on that. Their job is to maximize profits. Ours? To help you make an informed, strategic choice. As independent mortgage professionals, we work for you—not a single lender. That means we can compare multiple products from various financial institutions to find the one that actually suits your goals and protects your long-term financial health. Bottom line: Don’t let a shiny low rate distract you from what really matters. A mortgage should fit your life—not the other way around. Have questions? Want to look at your options? I’d be happy to help. Let’s chat.

Start Smart: Get Pre-Approved for Your Mortgage

By Jamie Ushko • October 8, 2025
Thinking of Buying a Home? Here’s Why Getting Pre-Approved Is Key If you’re ready to buy a home but aren’t sure where to begin, the answer is simple: start with a pre-approval. It’s one of the most important first steps in your home-buying journey—and here's why. Why a Pre-Approval is Crucial Imagine walking into a restaurant, hungry and excited to order, but unsure if your credit card will cover the bill. It’s the same situation with buying a home. You can browse listings online all day, but until you know how much you can afford, you’re just window shopping. Getting pre-approved for a mortgage is like finding out the price range you can comfortably shop within before you start looking at homes with a real estate agent. It sets you up for success and saves you from wasting time on properties that might be out of reach. What Exactly is a Pre-Approval? A pre-approval isn’t a guarantee. It’s not a promise that a lender will give you a mortgage no matter what happens with your finances. It’s more like a preview of your financial health, giving you a clear idea of how much you can borrow, based on the information you provide at the time. Think of it as a roadmap. After going through the pre-approval process, you’ll have a much clearer picture of what you can afford and what you need to do to make the final approval process smoother. What Happens During the Pre-Approval Process? When you apply for a pre-approval, lenders will look at a few key areas: Your income Your credit history Your assets and liabilities The property you’re interested in This comprehensive review will uncover any potential hurdles that could prevent you from securing financing later on. The earlier you identify these challenges, the better. Potential Issues a Pre-Approval Can Reveal Even if you feel confident that your finances are in good shape, a pre-approval might uncover issues you didn’t expect: Recent job changes or probation periods An income that’s heavily commission-based or reliant on extra shifts Errors or collections on your credit report Lack of a well-established credit history Insufficient funds saved for a down payment Existing debt reducing your qualification amount Any other financial blind spots you might not be aware of By addressing these issues early, you give yourself the best chance of securing the mortgage you need. A pre-approval makes sure there are no surprises along the way. Pre-Approval vs. Pre-Qualification: What’s the Difference? It’s important to understand that a pre-approval is more than just a quick online estimate. Unlike pre-qualification—which can sometimes be based on limited information and calculations—a pre-approval involves a thorough review of your finances. This includes looking at your credit report, providing detailed documents, and having a conversation with a mortgage professional about your options. Why Get Pre-Approved Now? The best time to secure a pre-approval is as soon as possible. The process is free and carries no risk—it just gives you a clear path forward. It’s never too early to start, and by doing so, you’ll be in a much stronger position when you're ready to make an offer on your dream home. Let’s Make Your Home Buying Journey Smooth A well-planned mortgage process can make all the difference in securing your home. If you’re ready to get pre-approved or just want to chat about your options, I’d love to help. Let’s make your home-buying experience a smooth and successful one!