Divorce and Mortgages

We do lots of mortgages for divorces – because they are complicated. Both people want to buy after or one buys out the other. BUT, you have to set the seperation agreement up correctly so this can happen.

Banks mess this up EVEY time as the math is complicated and people at banks are not licenced mortgage brokers 99% of the time.

Why not use the #1 mortgge brokerage in all of Canada for 2 years in a row to ensure your seperateion agreement is set up to work for both of you?

Mark Herman, Calgary Alberta mortgage broker and divorce mortgage specialist.

Below are some interesting numbers for Divorces:

If the Calgary- Red Deer – Edmonton Corridor was an actual country it would have:

  • a growth rate only 2nd to China – in all the world and
  • the highest divorce rate in all the world.

Other Key Findings
•Annual average of divorces in Canada: 71,000
•Marriages that won’t reach their 50th anniversary: 43%

Divorce Rates around the World
Sweden 55%
US, Australia 46%
United Kingdom 43%
Canada 40%
Israel 26%
Switzerland 25%
Greece 18%
Singapore, Poland 17%
Spain 15%
Italy 12%
Marriage rate in Newfoundland and Labrador 54.3% (highest in Canada)
Marriage rate in Quebec 37.5% (lowest in Canada)
Month with the highest Separation applications? January

Mortgage Rules for Divorces, updated for MArch, 2015:
In situations where two parties are on title to a property in the process of a legal separation where one party will keep the existing property, the following guidelines will now apply:

•Applications may be submitted as a purchase loan up to 95% LTV – or 5% down
•Both parties must be on title to the property prior to the legal separation
•Since this purchase transaction is non-arms length, a full internal appraisal is required

•The following documents confirming the sale price and transfer of title must be on file:

  1. Finalized separation agreement
  2. Offer to purchase