Divorce Mortgage Calculator | Equity Buyout Calculator (Separation & Divorce)
Facing a divorce or separation in Ontario? Our Spousal Buyout Calculator is the most advanced tool in Canada for determining the cost of buying out your partner and keeping the matrimonial home.
Instantly calculate the required equity buyout, model the payout of joint debts, and see if you can qualify for a new divorce mortgage on your own.
Get the financial clarity you need to make the best decision. Use our free calculator to understand your options today.
Frequently Asked Questions (FAQ)
What is a spousal buyout?
A spousal buyout, also known as an equity buyout, is a common process during a divorce or separation in Canada where one partner purchases the other partner's share of equity in the matrimonial home. This allows one person to keep the house by refinancing the mortgage to pay out their ex-spouse.
How do I calculate a spousal buyout in Ontario?
The basic calculation is to take the home's fair market value, subtract the remaining mortgage balance and any other debts secured against the property, and then divide the remaining net equity. However, real-life scenarios are more complex. Our Spousal Buyout Calculator is the best tool for this, as it accurately models the payout of joint debts and other costs to give you a precise buyout figure.
Can I get a mortgage to buy out my spouse?
Yes. This is often referred to as a divorce mortgage or separation financing. Canadian lenders have specific programs that allow you to refinance up to 95% of the home's value to facilitate a buyout. However, you must be able to qualify for the new, larger mortgage based on your own income and financial situation. This calculator is the first step in determining if you can qualify.
How is my ability to qualify for a buyout mortgage determined?
Lenders in Canada use two main calculations: the Gross Debt Service (GDS) ratio and the Total Debt Service (TDS) ratio. Our calculator uses the same standard lending rules and stress test rates to give you an instant, reliable indication of whether you are Likely to Qualify, May Qualify, or are Unlikely to Qualify.
Does child support or spousal support affect my mortgage qualification?
Absolutely. If you receive support payments, they can often be added to your income, which helps you qualify. If you pay support, it is treated as a monthly debt, which reduces the amount of mortgage you can afford. It is critical that this is structured correctly in your separation agreement. A mortgage professional specializing in divorce can provide essential guidance here.
What happens if I can't qualify to keep the house?
If the calculator shows you are unlikely to qualify, it provides the clarity needed to pivot your strategy. The most common alternatives are:
Selling the matrimonial home and splitting the proceeds after all debts are paid.
Having your ex-spouse attempt to buy you out instead.
Why is this calculator better than others?
Most online calculators are too basic. Our Divorce Mortgage Calculator is designed for the complexities of a real Canadian separation. It accurately models the payout of joint debts from equity and automatically includes CMHC insurance premiums when required, giving you and your lawyer a far more realistic financial picture to base your decisions on.