Refinancing the Family Home After a Divorce in Canada — What You Should Know
Going through a divorce and unsure what to do about the house? You’re not alone — and you don’t have to figure it out alone either.
I’m David Pipe, founder of WealthTrack. If you're trying to keep your home after a separation, you’re likely feeling overwhelmed — emotionally, legally, and financially. Refinancing a home post-divorce isn't just about money; it’s about securing stability, protecting your credit, and giving your family a smoother path forward.
Whether you’re staying for your kids, trying to protect your equity, or just want to move on with clarity, we can help you refinance your home the right way — in your name, with your future in mind.
In this guide, we’ll walk you through everything you need to know about refinancing the family home after divorce in Ontario — including paperwork, lender expectations, hidden costs, and common pitfalls.
And when you’re ready, we’re just one intake form away from helping you take the next step.
Scenario 1: “We agreed I’d keep the house—now I need to make it official”
Take Sarah and Mike, for example. After 12 years of marriage and two kids, they divorced amicably. The family home in Kitchener had a decent chunk of equity, and both agreed that Sarah would stay in the house to maintain consistency for the kids. They signed a separation agreement outlining that Sarah would buy Mike out of his equity share in the home.
She paid him his portion from her savings and thought that was the end of it — until her mortgage renewal came up. Sarah realized that Mike was still on the deed and mortgage. To fully own the home and secure her financial future, she needed to refinance and remove him from both the mortgage and property title.
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What Refinancing Means in a Divorce Context
When people hear "refinancing," they usually think of negotiating a better interest rate or consolidating debt. Post-divorce, however, refinancing your mortgage is often less about the rate and more about formalizing a new ownership and payment structure. In Ontario, refinancing after a divorce means:
Qualifying for a mortgage in your name alone
Removing your ex-spouse from the mortgage (and often the property title)
Possibly increasing the mortgage amount to buy out your ex’s share of equity
The Paperwork You’ll Need
Lenders and lawyers in Ontario will typically want the following:
A Legally Binding Separation Agreement
This outlines who keeps the home, how the equity is divided, and what financial responsibilities each person retains. Most lenders in Ontario won’t proceed without this.Current Mortgage Details
This includes your existing balance, lender, and interest rate.A Property Appraisal
The home must be revalued via an appraisal or comparative market analysis.Proof of Income
You’ll need pay stubs, employment letters, or Notices of Assessment (NOAs) to prove you can qualify solo.ID and Legal Title Documentation
In Ontario, the title transfer is handled through Teraview (the province’s land registration system) and must be managed by a real estate lawyer.
Scenario 2: “I already paid them out, but their name is still on everything”
This is more common than you'd think. Some couples sort out the money side informally—maybe one person pays out the other early—but forget or delay the formal legal steps. This becomes an issue when it’s time to renew your mortgage or sell the property later.
If your ex is still on title or the mortgage, they’re legally tied to the property—even if the finances are long settled. Only a legal title transfer and mortgage refinance can fully resolve this.
Legal and Financial Costs to Expect in Ontario
Refinancing in Ontario involves some unavoidable costs:
Legal Fees ($1,000 – $2,000)
You’ll need a real estate lawyer to draft documents, handle the title transfer, and communicate with your lender.Appraisal Fee (~$350)
Required by lenders to determine the current value of your home.Land Titles Registration Fee (Teraview)
In Ontario, this is typically under $100 but may vary. Unlike Alberta, Ontario doesn’t have a per-$5,000 scale—costs are fixed per transaction type.Discharge Fee from Lender (~$75)
If switching lenders, your old lender will charge a discharge fee.Independent Legal Advice for Your Ex ($300–$600)
If your ex is giving up their share of the home, they may need independent legal advice — sometimes paid by you, depending on your agreement.
Working with a Mortgage Broker vs. Your Bank
Some people automatically stick with their existing bank, but it’s worth consulting a mortgage broker. Why?
Brokers can shop around for competitive rates
Some lenders specialize in post-divorce mortgages
Brokers can help if your income situation has changed due to separation
For many newly single homeowners in Ontario, a broker can offer more flexibility than a bank.
Scenario 3: “We’re civil—but our mortgage renewal is in six months and I feel unprepared”
Timing matters. If your mortgage is up for renewal in 6–12 months and you intend to keep the home, it’s smart to start the refinance process at least 3–4 months in advance. This gives you time to:
Gather documents
Complete the appraisal
Have your lawyer draft necessary transfer paperwork
Resolve any delays (e.g., waiting on your ex’s signature)
What Can Go Wrong?
Even with the best intentions, hiccups happen:
Appraisal comes in lower than expected, making it harder to pay your ex their share
One party refuses to sign off on the title transfer
Legal documents aren’t finalized by your refinance deadline
Lender requires conditions that weren’t previously discussed
Being proactive and working with both a legal professional and a mortgage specialist helps reduce these risks.
Refinancing vs. Porting a Mortgage
Sometimes people ask if they can “port” the mortgage instead. Porting means taking your existing mortgage (rate and term) and moving it to another property. In divorce situations, porting rarely applies unless one spouse is moving and buying a new place. If you’re keeping the existing home, you’ll typically need to refinance instead.
Get Professional Advice
Hello, I’m David Pipe. At WealthTrack, we can help you reach your financial goals — book a free 15-minute call with us today to find out how to get started.
Final Thoughts
Refinancing your home after a divorce isn’t just a financial transaction — it’s a critical part of reclaiming stability, security, and peace of mind.
Whether you’re staying for the kids, sentimental reasons, or practicality, make sure everything — title, mortgage, and finances — is officially in your name.
With the right professionals by your side, and a clear understanding of Ontario’s process, you can move forward with confidence.
