# Can a senior mortgage include a 'Spousal Buyout' for estate planning?

> Yes. If one spouse wishes to remain in the home while releasing half the equity to an ailing spouse or into a trust for heirs, they can use the 95% LTV buyout rule or a standard 80% cash-out refinance for estate purposes.

Category: Strategy
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/strategy/can-a-senior-mortgage-include-a-spousal-buyout-for-estate-planning

## Answer
Yes. If one spouse wishes to remain in the home while releasing half the equity to an ailing spouse or into a trust for heirs, they can use the 95% LTV buyout rule (if legal separation or divorce occurs) or a standard 80% cash-out refinance for estate purposes. This is a common strategy for funding long-term care for one spouse while the other remains in the principal residence.

## Related guide
- https://ratellow.com/guides/senior-mortgage-retirement-income

## Sources
- FCAC Guide: Reverse Mortgages — https://www.canada.ca/en/financial-consumer-agency/services/industry/laws-regulations/guideline-existing-mortgage-loans-exceptional-circumstances.html#toc3
- B-20 Pension Qualification — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.3.1