By Leanne Mollica
Mortgage Broker | Mortgage Architects – Team Borle
Founder, My Mortgage Strategy
Serving Salmon Arm, the Shuswap, and British Columbia
Separation changes a lot — emotionally, legally, and financially.
And for many people, the mortgage becomes one of the biggest question marks during an already overwhelming time.
When a relationship ends, mortgage questions tend to surface quickly — often alongside stress, uncertainty, and pressure to make fast decisions. Unfortunately, many people are navigating this process with outdated information, well-meaning advice, or assumptions that don’t reflect how lending actually works today.
Understanding the mortgage side early can make a meaningful difference — not because decisions need to be rushed, but because clarity creates options.
Separating Doesn’t Automatically Mean Selling
One of the most common assumptions I hear during separations is:
“We’ll have to sell the house.”
While selling can absolutely be the right choice in some situations, it’s not the only option — and it’s not automatic.
Depending on the circumstances, there may be alternatives such as:
- One person keeping the home
- Refinancing to buy out the other party
- Creating a temporary plan while legal and financial details are being finalized
Every situation is different, and the right solution depends on qualification, timing, and how the separation is structured — not just on what feels urgent in the moment.
A Lesser-Known Option: Spousal Buyout Programs
Here’s something many people don’t realize:
Under some lenders’ spousal buyout programs, the partner staying in the home may be able to finance up to 95% of the home’s value to complete a buyout — even when that wouldn’t normally be possible under standard refinance rules.
These programs are designed specifically for relationship breakdowns and can allow for higher loan-to-value financing than a typical refinance, provided lender guidelines are met.
This doesn’t mean everyone will qualify — but it does mean that selling isn’t the only path worth exploring.
Why Timing and Qualification Matter
Mortgage decisions made during emotionally charged moments can quietly limit future options.
What often catches people off guard is that:
- Lenders assess income, debt, and support payments differently during a separation
- Refinancing usually requires re-qualification under today’s rules, not the ones in place when the home was purchased
- Agreements between separating partners don’t override lender requirements
In other words, the key factor isn’t emotion — it’s qualification and timing.
Understanding how lenders view the file before decisions are locked in can change the entire conversation.
Local Perspective Matters
Here in the Shuswap, homes often represent more than just equity. They’re tied to family roots, lifestyle, schools, and long-term plans. That makes informed mortgage decisions even more important — especially in a market where housing options and timing can be limited.
Clarity Before Commitment
My role isn’t to tell anyone what they should do during a separation.
It’s to help people understand what they can do, so their next step is intentional — not reactive.
Whether the outcome is keeping the home, refinancing, or selling strategically, the right mortgage decision is rarely about doing what feels safest in the moment. It’s about understanding what best supports your future.
If you’re navigating a separation and have questions about how the mortgage side actually works, getting clarity early can provide peace of mind — even if no immediate decisions are being made.
This information is provided for general educational purposes only and does not constitute legal or financial advice. Mortgage options are subject to lender guidelines, qualification, and approval.