Free tool from REMIC
Spousal Buyout Calculator
Work out what one spouse has to pay the other, what the new mortgage becomes, and whether the buying-out spouse actually qualifies for it.
A separation file has two sets of rules running at once. Family law decides what equity gets divided, and it works differently in Ontario than in Alberta, British Columbia or Quebec. Mortgage rules decide whether the person staying can carry the result.
This tool runs both. Enter the property, the province and the income, and it gives you the buyout amount, the new mortgage, the loan to value, and the debt service ratios at the stress test rate.
01 / Property and debt
Current value, and what is registered against it
Lenders underwrite to current market value, whatever valuation date the family law calculation uses.
Appraised or agreed value as at the refinance date.
02 / Province
What the province does to the equity
Ontario divides the full equity in a matrimonial home regardless of when it was bought. Alberta and British Columbia exclude pre-relationship value. Quebec works under family patrimony rules, which are different again.
Applied in Alberta and British Columbia. Ontario excludes nothing on a matrimonial home.
An equal split is typical. Anything else needs an agreement or a court order.
Legal, title transfer, appraisal, any mortgage penalty.
03 / The spouse staying
Income, support and the new mortgage
Spousal support paid out comes off income before the ratios are run. Child support paid out is treated as a debt inside TDS. Support received needs a court order or a signed agreement before a lender will use it.
Gross-up rules for support received vary by lender.
Does the buyout work
Calculating
Results update as you type.
Buyout required
$0
to the spouse leaving
New mortgage
$0
to refinance
GDS at stress test
0%
39% insured limit
TDS at stress test
0%
44% insured limit
Step by step
Insured buyout program, what to check
If the straight buyout does not work
One thing to hold onto
The separation agreement or court order is the source of truth for both the division and the support. It has to be signed and dated before the buyout mortgage closes, and the file needs the agreement, the valuation, a current title search, payout statements for every secured debt, and confirmation of independent legal advice.
Nobody on the mortgage side gives legal advice on a separation. That is the lawyer's work, and the underwriting follows it.
This calculator is one of 45 in Residential Mortgage Underwriting in Canada. Chapter 14 covers spousal buyouts and matrimonial homes in full, including why four provinces give four answers on the same file.
Where this tool comes from
This is one of 45 calculators in the underwriting program
Residential Mortgage Underwriting in Canada is a three-course program covering the borrower, the property and the deal, and underwriting in practice. Forty-four chapters, written for Canadian files with current figures.
- A full chapter on spousal buyouts and matrimonial homes, including why four provinces give four answers on the same file
- A calculator for every chapter, built to use on live deals
- Live file clinics every month where real deals get worked in front of the group
- Ten hours of Professional CE in Ontario per course
Why the same file gives different answers in different provinces
Ontario
The matrimonial home is treated differently from every other asset. The full equity divides, no matter who owned it before the marriage or who paid the deposit. A spouse who brought the house into the marriage does not get that value back off the top.
Alberta and British Columbia
Pre-relationship value is generally excluded, and only the growth during the relationship divides. On a long-held property that difference can run into six figures.
Quebec
Family patrimony rules under the civil law, with their own treatment of the residence. Quebec files need Quebec advice, and the assumptions that work elsewhere do not transfer.
What this means on a file
Two clients with the same house, the same mortgage and the same marriage can need very different buyout amounts depending on where the property sits. Get the province right before you quote anyone a number.
Questions
How is a spousal buyout calculated?
Start with current market value, subtract every debt registered against title to get net equity, apply any provincial exclusion, divide the result by the agreed share, then add the transaction costs. That total is the cash the buying-out spouse has to produce, usually through a refinance.
Can a buyout go above 80 percent loan to value?
Yes. A standard refinance stops at 80 percent, but an insured matrimonial buyout can go to 95 percent loan to value when the program conditions are met. The spouse staying has to have been on title already, the separation agreement has to be signed before closing, and standard insurance premiums apply. It is a specific program with criteria, not a blanket exemption from down payment rules.
How is support treated in qualifying?
Support paid out reduces income on the spousal side, and child support paid out is carried as a monthly debt in TDS. Support received can be used as income when it is documented by a court order or a signed agreement, with the gross-up rules varying by lender.
Does pre-marriage value come off the top?
It depends on the province. In Ontario the matrimonial home is fully divisible regardless of when it was acquired. Alberta and British Columbia generally exclude pre-relationship value. This is the single most common mistake on a separation file.
What if the spouse staying cannot qualify?
Options include assuming the existing mortgage with a release of covenant, a smaller mortgage combined with a line of credit, a promissory note registered against title for part of the share, a private bridge for six to twelve months, or a joint sale with the proceeds divided.
Is this free to use?
Yes. No sign-up, nothing stored, and you can print the calculation. It is one of the tools from REMIC's underwriting program, published so you can see the standard the material is written to.
What this is. An educational tool for mortgage professionals and for anyone trying to understand how a matrimonial home buyout is put together. It is not a mortgage approval, not a pre-approval, and not an offer of financing. No lender is bound by anything it produces, and a lender will reach its own number on its own policy.
It is not legal advice. How property divides on a separation is decided by provincial family law and by your agreement or court order, not by a calculator. Equalization and support figures have to be confirmed by a family lawyer. If you are separating, get your own legal advice before you act on any figure here.
Provincial differences are simplified. The tool applies a pre-relationship exclusion in Alberta and British Columbia and divides the full equity elsewhere. That is a general pattern, not a complete statement of the law in any province. Quebec in particular works under family patrimony rules in the civil law, and this tool does not model them. Quebec files need Quebec advice.
Figures change. Insurer program conditions, loan to value caps and qualifying rules are reviewed and revised. Figures here reflect rules current at publication, verified against CMHC and OSFI. Confirm current guidelines with your lender before relying on a result.
Nothing is stored. Everything you type stays in your browser. No figures are sent anywhere, saved or collected.
© Real Estate and Mortgage Institute of Canada Inc.