21 Sep

Spousal Buyout and the Mortgage Process

General

Posted by: Shelley Rosner

When a relationship ends and you own a home together, one option may be for one spouse to remain in the property and buy out the other spouse’s interest. This is commonly referred to as a spousal buyout.  There are legal considerations involved, but there is also an important financing question: Can the person keeping the home qualify for the mortgage needed to complete the buyout?  This is where your mortgage broker becomes part of the process.

Step 1: Understand the proposed buyout.
Your mortgage broker starts by gathering the financial details: the existing mortgage balance, approximate property value, proposed buyout amount and any other financing that may be required including any application child or spousal support payments.  The broker does not determine how the property or equity should be divided. Those decisions should be addressed with your lawyer, mediator, or other appropriate professionals.

Step 2: Review mortgage qualification.
If your plan is to keep the home, the next step is determining whether you can qualify for the required mortgage financing.  Your broker will review the information lenders typically require, including income, employment, credit, and existing debts. This helps establish what may be financially possible before the transaction moves too far ahead.

Did you know that a spousal buyout is considered a purchase and financing options can extend past those of a standard refinance.

Step 3: Confirm the property value.
The lender may require an appraisal to establish the home’s current market value. This is an important part of determining the available equity and the amount of financing that may be considered.

Step 4: Review the available mortgage options.
A spousal buyout is typically treated differently from a standard mortgage refinance. Depending on the circumstances, lender and mortgage insurer guidelines can affect the amount of financing available and the documentation required.  Your broker can review appropriate lender options and explain the requirements that apply to your situation.

Step 5: Gather the supporting documents.
The lender will require documentation confirming the terms of the buyout, along with the usual mortgage qualification documents. The exact requirements will depend on the lender, client, and, where applicable, the mortgage insurer.

Step 6: Coordinate the financing.
Once an appropriate mortgage solution has been identified, your broker submits the application, works through lender conditions and coordinates the mortgage requirements with the lawyer or notary completing the transaction.

Starting the mortgage conversation early can help!  Understanding what you may qualify for can provide useful financial information while decisions about the property are being made.

If you are in a position where a spousal buyout is something that you are considering, we can help you understand the mortgage process, determine what financing may be available and outline the steps required to move forward.

9 Sep

Closing Costs in BC

General

Posted by: Shelley Rosner

Don’t get caught off guard!

Your offer has been accepted, financing is coming together, and you’re already thinking about getting the keys. But there’s another important part of the home-buying budget that shouldn’t be overlooked: closing costs.

Closing costs are the expenses required to complete your purchase, with some paid before completion and others on or around closing day. As a general planning guideline, buyers may want to budget approximately 1.5% to 4% of the purchase price, although the actual amount will depend on the property, purchase price, financing and individual circumstances.

Common costs can include:

  • Property Transfer Tax (PTT)

  • Legal or notary fees and disbursements

  • Home inspection

  • Appraisal, if required

  • Title insurance

  • Home insurance

  • Property tax, utility or strata adjustments

  • GST on certain newly built homes

Property Transfer Tax Can Be a Significant Expense

For many BC buyers, Property Transfer Tax is one of the largest closing costs.

BC’s general PTT is currently calculated at 1% on the first $200,000 of fair market value, 2% on the portion above $200,000 up to $2 million, and 3% on the portion above $2 million, with an additional 2% potentially applying to the residential portion above $3 million.

There are exemptions available for some purchasers, including qualifying first-time home buyers and purchasers of certain newly built homes. Eligibility requirements and thresholds can change, so it’s important to confirm what applies to your specific purchase rather than assuming an exemption will be available.

This is a perfect example of why working closely with your mortgage broker from the beginning is so important. Your circumstances are unique, and understanding which costs, exemptions and requirements may apply to you helps ensure they are properly factored into your overall home-buying budget.

Look Beyond the Down Payment

But what happens if you qualify for the mortgage, yet haven’t budgeted for everything you’ll need to actually complete the purchase?

When I review your financing, the conversation isn’t simply about how much mortgage you qualify for or how much you have for a down payment. Closing costs and your overall cash required to complete the purchase will be considered from the beginning.

That distinction matters. The cash you need to complete your purchase may include your remaining down payment (after your deposit), closing expenses, PTT, GST (where applicable) and adjustments for expenses such as property taxes or strata fees.

Understanding these numbers early can help you establish a realistic purchase budget, determine how much of your savings needs to remain accessible and avoid stretching your finances further than intended.

Plan First. Shop Second.

A mortgage pre-approval is only one part of a successful home purchase. My goal is to help you understand the full financial picture from the beginning, so you can move forward feeling informed, prepared and comfortable with your decisions.

Before you start shopping—or before you write an offer—let’s discuss your financing, estimated closing costs and approximate cash required to complete your purchase.

The right financing strategy goes beyond the mortgage itself—it considers what you’ll need before, during and after you move in, and beyond.

Note: Cost estimates and tax information are provided as general guidance only. Property Transfer Tax information reflects BC rules reviewed in September 2026. Programs, thresholds, lender requirements and professional fees can change and should be confirmed for your specific situation.