Going through a separation or divorce is challenging enough without the added stress of figuring out what to do with your home. Fortunately, Sagen’s Spousal Buyout Program offers a practical solution, enabling you to refinance up to 90% of your home’s value to buy out your partner and move forward with peace of mind.
What Is a Spousal Buyout?
A spousal buyout allows one partner to refinance the existing mortgage to buy out the other person’s interest in the home. This means you can keep your home without the immense burden of selling, relocating, and starting fresh. For many separating couples, maintaining stability — especially for children — remains a key priority, and the spousal buyout makes this possible while ensuring that both parties receive their fair share of the home’s equity.
Key Benefits of Sagen’s Spousal Buyout Program
1. Up to 90% Loan-to-Value (LTV) Financing
Most standard refinances top out at 80% of your home’s value, making it tough to release enough funds in a buyout scenario. Sagen’s Spousal Buyout Program stands apart by allowing you to refinance up to 90% of your home’s appraised value. This higher LTV can be a game-changer, providing the flexibility to cover the buyout amount and related expenses.
2. Competitive Interest Rates
Since Sagen considers a spousal buyout a purchase transaction rather than a standard refinance, you may be eligible for lower interest rates compared to traditional refinancing options. This means more manageable monthly payments and less long-term interest costs — an important advantage during a period of major financial adjustments.
3. Flexible Use of Funds
The additional funds aren’t just for buying out your ex-partner. Sagen’s program allows you to use the additional funds to cover legal fees, pay off mutual debt, or facilitate a cleaner financial break between both parties. This flexibility can help ease the transition and simplify the path toward independent financial stability.
Spousal Buyout Eligibility Criteria
In order to qualify for Sagen’s Spousal Buyout Program, applicants generally need to meet the following conditions:
- Legal Separation Agreement: You’ll need a formal, legally binding separation agreement that details the division of assets and liabilities between both parties.
- Appraisal: An up-to-date appraisal is necessary to determine the current market value of the property.
- Creditworthiness: The spouse retaining the home must have a satisfactory credit score and demonstrate the ability to shoulder the new mortgage independently.
- Proof of Income: Lenders will ask for documentation to confirm you have the stable, sufficient income needed to support the mortgage payments.
- Eligibility for Mortgage Insurance: The new loan, since it’s beyond the standard 80% LTV threshold, must qualify for mortgage default insurance, which Sagen provides.
Why Consult a Mortgage Broker Early?
Navigating a separation while managing complex financial changes can be daunting. Engaging a mortgage broker from the outset offers several key advantages:
- Expert Guidance: A mortgage broker understands the ins and outs of Sagen’s Spousal Buyout Program and can ensure you meet all eligibility criteria from the start.
- Customized Solutions: Brokers assess your personal situation, helping you choose products and strategies that best fit your needs.
- Streamlined Process: With experience facilitating these transactions, brokers can expedite paperwork and liaise with Sagen, appraisers, lawyers, and other stakeholders to keep your application moving efficiently.
If you’re facing a difficult separation and hope to maintain stability by retaining your home, Sagen’s Spousal Buyout Program offers a lifeline—allowing you to refinance up to 90% of your property’s value. Engaging a knowledgeable mortgage broker in Windsor, Ontario, can simplify this complex process, help you understand your options, and speed up your application during a stressful time.
Note: Program terms and conditions are subject to change. For the most accurate, up-to-date information, consult Sagen’s official resources or speak directly with a mortgage professional experienced in spousal buyouts.
