What’s Next for your Home After a Separation?

Growing up, most people dream about living a fairytale with a wonderful partner and a life of bliss. Unfortunately, real life is not always a fairytale and not every relationship lasts forever. In fact, the latest statistics show that 38 percent of all marriages in Canada end in divorce.

Separating, whether through a divorce or ending a common-law relationship, is never an easy step. Losing someone close to you (whether for the better or not) is hard – but it doesn’t have to mean losing your home too. Most individuals who are going through a separation feel as though they are forced to sell their home and split the equity depending on your agreement, but there is another way.

spousal buy-outs

Spousal buy-outs are one of the mortgage industry’s best-kept secrets and we want to blow the lid on this great alternative! While not everyone will want to remain in their home, many individuals may opt to remain rooted – especially for those with children who are already enrolled in school and happy in their neighborhood. This is where the Spousal Buy-Out Program comes in.

Backed by all three of Canada’s mortgage insurance providers (Canada Mortgage and Housing Corporation, Sagen™, and Canada Guaranty), this program is designed to allow one party to refinance the shared home up to 95 percent of its appraised value. In order to qualify, both you and your ex-partner must currently be on the deed to the property. As a one-time opportunity, the Spousal Buy-Out Program can also be used to pay off other debts outside the separation agreement, further assisting with the transition.

Now you may be thinking “I wish I could, but I can’t afford it”. Well, don’t sell yourself short just yet! We understand the cost of purchasing a home, whether outright or from your partner, can be high. Fortunately, The Spousal Buy-Out Program was designed to help YOU and mitigate these costs by allowing individuals to bring on a cosigner, such an existing family member or even a new partner, to assist.

If you are separating from your spouse or partner and would really like to hold onto your shared home, there are a few things you will need including:

1. AN APPRAISAL

An appraisal report will likely have been obtained to determine the Equalization of Assets. However, in some cases, the appraisal may not be acceptable to a lender unless it was originally ordered by a third party. The appraisal must also have been produced within 90 days (less with some lenders) to ensure accuracy. If the original report was previous to 90 days, a new one must be obtained.

2. A SIGNED SEPARATION AGREEMENT

To qualify the lender must be provided a signed copy of the separation agreement. The details of asset allocation must be clearly outlined.

3. AN AGREEMENT OF PURCHASE AND SALE

A standard agreement of sale indicating the new ownership.

4. AN EMPLOYMENT LETTER OR RECENT PAY STUB

This is required so the lender can verify your ability to manage your mortgage payments.

5. DEBT PAYOUT LIST

This is an optional one-time option for paying off additional debts outside of the separation agreement. The proceeds can only be used to buy out the other owner’s share of equity and/or to pay off joint debt as explicitly noted in the signed separation agreement.

Moving on in life can often be difficult, but this program allows you to maintain some of your routine and security by ensuring you – and your children – can remain in the home you love.  

I am always here to sit down and chat with you about ways you are able to move forward. Don’t hesitate to reach out & we will find an action plan for you!

Cheers,
Gillian

Tis the Season of Staying Motivated

The winter holiday season is often said to be the most wonderful time of the year. However, it is also one of the busiest and most stressful times of the year. There are increased demands at work or in your business. The holidays tend to be socially demanding too. With all this going on at work and in your personal life, it can be very emotionally draining. This time of year is often centered on celebration, family, and friends. The fact is some people find themselves mired in family conflict or feeling lonely, heightening their levels of emotional stress.

Unfortunately, the pressure during these months can cause us to get distracted from some of our most important goals. No matter what your goals may be, many people find it difficult to stay motivated.

TIPS TO STAY MOTIVATED

Here are six tips I use help me stay motivated during the holidays:

1. Write your goals down. Carve out 30 minutes of your time to sit down without any distractions (turn your phone on airplane mode if you have to) and write down each goal you have on one side of a cue card. You should keep it to three goals or else your mind gets overwhelmed.
2. Know why. Review each goal and write down why you want to achieve it. On the back or your cue card, write down how it will make you feel once you accomplish your goal, and also add any new opportunities that might arise through the process of achieving what you set out to do.
3. Goal planning. The reason we normally forget about our goals during the holidays is that there is so much going on and there are so many distractions. Make sure to look at your goals and review them each morning when you wake up. Pro tip: keep them on your bedside table and read them when you first wake up (before checking your phone)!
4. Break them down. Instead of just focusing on the end goal, break the steps toward the goal down into manageable tasks that you can complete within 10 minutes or less. If you are able to break each goal up into that time frame then you will be able to move forward with your goals each and every day with no excuses!
5. Involve family and friends. It will be much easier to achieve your goals if your family and friends are on board and cheering you on. However, they cannot support you if you don’t tell them. Share your goals along with the reasons behind them so you can have people keep you on track.
6. Allow yourself to enjoy the holidays. Whether your goals are work-, life- or health-related, focusing and moving forward on your goals doesn’t mean you can’t also enjoy yourself! If you have a health goal, still allow yourself to enjoy that pie (in moderation, of course). If the goal is more career-centred, take time away from your laptop to enjoy social events and holiday parties. You will feel more refreshed and inspired when you take time away.

Above all, give yourself some grace during the holidays, remembering that the reason you want to work hard for this life is to experience more of it! Don’t be too rigid making it all about productivity; celebrate the small steps and reward yourself often! You will see the results which will motivate you to do more and make you feel confident as you enter the New Year.

Happy Holidays!

Gillian

Published by our DLC Marketing Team