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CASE STUDY: MATRIMONIAL BREAKUP ELIGIBLE FOR 95% LTV

At GLM Mortgage Group, you’ll find knowledgeable and experienced Mortgage Specialists with an impressive range of mortgage solutions available to you! Contact us at 604.259.1203 or visit us at geoffleemortgage.com.

Joseph and Lianna decided to end their marriage. They decided that Lianna, a Registered Nurse, would get the matrimonial home and Joseph, who owns his own business, would be paid out by the couple splitting the equity of their home minus any joint debts. GLM Mortgage advised them that Joseph and Lianna could increase the mortgage to 95% so they could do this. It was crucial for GLM Mortgage to connect with the divorce lawyers to ensure the separation agreement was written up properly in regard to the division of the home’s equity and what it is to be used for. Joseph and Lianna didn’t know how they would be able to get a mortgage based on 95% loan to value. They didn’t know what to do financially with their difficult situation. But GLM Mortgage did!

Value of Home $750,000

Requested mortgage amount $712,000

Loan to value 95%

Documentation - Legal separation agreement which clearly identifies what the equity will be used for (paying out the spouse or debt reduction) - Private sale (no Realtor involved) - Need offer to sell from Lianna and Joseph (sellers) and then offer to purchase to Lianna (buyer) - Full appraisal to determine how much equity is available. - Current mortgage statement - Standard Income documentation

Credit Score 682

Total Debt service ratios 41%

Mortgage solution Payout would be based on the amount of equity in the home. Because this situation was based on a matrimonial split, the Mortgage Insurer (CMHC) will allow refinance up to 95%. Lianna will have to income qualify by using either her own income or using a co-signor.