Spruce Grove Mortgage Broker: Krista Lindstrom
 (780) 946-6222   ·    Email

Spousal Buyout

Call Krista now at (780) 946-6222 to find out if you are eligible for the Spousal Buyout program.

Are you getting a divorce? Do you want to dissolve financial ties with your ex-spouse? I can help you with the Spousal Buyout program that will benefit both parties and help you move on with your life.

The Spousal Buyout program is helpful for people who are in the process of a legal separation; when one person would like to keep their matrimonial home, but two people are on the title to the property. The program is available to jointly titled homeowners with a dissolved relationship, including common-law spouses as well.

Requirements for the Spousal Buyout Program:

  1. Dwelling must be owned & owner occupied.
  2. Home appraisal must be ordered by mortgage broker.
  3. Have an offer to purchase (broker can assist).
  4. Working towards a finalized separation agreement.

If you meet these requirements, contact Krista now for more information on the Spousal Buyout program.

Krista Lindstrom is a member of the Collaborative Divorce Association of Alberta.



  • We can use up to 95% value of the home.
  • Spousal and Child Support can be used as income.
  • Joint debt can be included.
  • Lump sum payouts to spouse can be included.

Marnie and Rick both own their home but are going through a divorce. They have an estimated 10% equity in their home. The bank has indicated that they can’t refinance and must sell. Marnie want to keep the home and live in it with the children but only works part time and will be relying on spousal support for additional income. They have agreed that Rick is entitled to $10000 in equity to buy his new home.

Spousal buyout is the solution! Rick sells his share of the home to Marnie for the appraised value (appraisal ordered by mortgage broker). Rick receives $10000 as a disbursement of the sale. The title of the home is changed to only Marnie.

If you would like to dissolve your financial ties from your ex-partner, the Spousal Buyout program may be for you.

Call Krista now at (780) 946-6222 for more information on the Spousal Buyout program.


When going through a separation or divorce, you ultimately want one thing: to start a new life on the best foot possible. When you seek the advice of a mortgage professional early in the process, you can make this goal a reality by leveraging your most important asset—your home.
For many separating couples, this involves taking advantage of the Spousal Buyout Program—a mortgage that allows one spouse to purchase the home outright from the other, who then comes off the title. This type of mortgage allows you to access up to 95% of the value of your home, as opposed to the 80% LTV offered by a traditional refinance.

Example: Spousal Buyout program

Lance and Jenny have decided to separate. Lance wants to keep their family home, and Jenny wants to purchase a new property. Let’s look at their financial information:

Home value: $425,000
Mortgage balance: $350,000
Joint equity: $75,000 ($425,000 – $350,000)
Credit card debt: $15,000

The couple would like to split their existing equity equally, so Lance would have to pay Jenny $37,500 to buy her out of the home. If they can, they’d also like to pay off their $15,000 in joint credit card debt through the refinance. To do all this, Lance would need a new mortgage of at least $402,500 ($350,000 + $37,500 + $15,000).

If they were to go the traditional refinancing route, they would only be able to acquire a mortgage worth 80% of their home’s value, which would look like this: $425,000 x 0.8 = $340,000 New mortgage

Since the maximum loan amount is $340,000—a number that is less than their existing mortgage—it’s definitely not enough to buy Jenny out of the mortgage, let alone tackle their credit card debt.

Under the Spousal Buyout Program, the couple can access up to 95 percent of their home’s value. When you crunch the numbers, it looks like this: $425,000 x .95 = $403,750 New mortgage

The maximum loan amount in this situation, $403,750, is more than enough equity to buy out Jenny—giving her $37,500 to put towards a new home—and to pay off the joint credit card debt.


Need a fresh start? Contact me to find out how the Spousal Buyout Program can work for you.

* Mortgage insurance premiums are payable above 80% LTV and each mortgage insurer has specific requirements. Payout penalties may apply on the existing mortgage. Subject to qualification.