# How does the 95% LTV spousal buyout refinance work?

> Under CMHC, Sagen, and Canada Guaranty guidelines, a separating spouse can refinance up to 95% LTV to buy out the other's equity share.

Category: Legal
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/legal/how-does-the-95-ltv-spousal-buyout-refinance-work

## Answer
Under CMHC, Sagen, and Canada Guaranty guidelines, a separating spouse can refinance up to 95% LTV to buy out the other's equity share. Requirements: (1) valid separation agreement or court order, (2) independent legal advice for both parties, (3) the buying spouse must qualify under B-20 stress test, (4) property must remain owner-occupied. The mortgage insurance premium applies at the 95% LTV tier. This exception only applies to matrimonial/family home — investment properties are excluded.

## Related guide
- https://ratellow.com/guides/divorce-separation-mortgage

## Sources
- CMHC Spousal Buyout — 95% LTV Exception — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf
- B-20 Refinancing Standards — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.4.3