What documentation do lenders require for separation mortgages?
Required documentation: executed separation agreement or court order, property appraisal (current market value), existing mortgage statement, proof of support payment history (if using as income), evidence of independent legal advice, and standard income/employment verification.
Lenders may also require confirmation that both parties' legal counsel have reviewed the buyout terms.
Primary sources
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Related Questions
How do you structure a 95% LTV refinance for a buyout?
Technically, this is structured as a 'Purchase' from one spouse to another, which is why it qualifies for 95% LTV (insured) instead of the 80% (conventional) refinance cap.
What are the core 2026 documentation requirements?
Lenders will not touch a buyout file without a final, signed Separation Agreement.
Can a spousal-buyout borrower use the first-time buyer 30-year amortization?
A spousal buyout does not by itself create first-time buyer status. Insured 30-year amortization is available only when that borrower meets the first-time buyer test, or the home is newly built, under CMHC Home Start.
What is the biggest risk in a spousal buyout file?
The single most common failure point is the 'Income Gap.' Most families qualify for their home on two incomes; qualifying on one income while paying support is extremely difficult under the stress test.