Spousal Buyout Mortgages in BC: Bank vs. Private Options

June 6, 2025 | Posted by: Alex Vinarski

Spousal Buyout Mortgages in BC: Bank vs. Private Options

Going through a separation or divorce and need to buy out your spouse’s share of the home? You have two main financing options:

Option 1: Refinance with a Bank (Best Rates)

If you qualify, a traditional bank mortgage is the most affordable way to buy out your spouse:

✅ Lower interest rates 
✅ Stable payments

Requirements:

• Good credit (620+ score)

• Proof of income (tax returns, pay stubs)

Tip: If you can’t qualify due to income, some banks offer 'spousal buyout exceptions'—ask me!

Option 2: Private Mortgage (Fast Approval, No Income Verification)

If banks decline you, a private mortgage can be a short-term solution:

✅ No income verification, bad credit OK(approval based on home equity)
✅ Fast funding (as quick as 5-7 days)
✅ Flexible terms (open or closed)

How It Works:

1. Appraisal determines home value.

2. Calculate buyout amount (e.g., spouse owns 50% → refinance their share).

3. Private lender funds the buyout (loan amounts up to 80% of home value).

Tip: Use a private mortgage for 1-2 years, then refinance back to a bank when possible.

Which Option is Best for You?

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