Mortgages After Divorce: Buying (or Refinancing) Alone in Ontario

The divorce is finalized. You’re finally ready to move forward and buy a home of your own. But now you’re wondering: Can I qualify alone? How does the court order affect my mortgage application? Will my ex’s debt hurt my approval?

These are legitimate concerns. Let’s clear them up.

The Divorce Impact on Mortgage Qualification

Good News: Divorce itself doesn’t disqualify you.

The Reality: It complicates paperwork and timing.

Spousal/Child Support Impact

If You Pay Support:
• This amount reduces your qualifying income
• Example: You earn $100,000, pay $1,000/month support
• For mortgage purposes: Your income = $100,000 – ($1,000 × 12) = $88,000
• This reduces your approval by ~$60,000-$80,000 on a mortgage

If You Receive Support:
• This amount increases your qualifying income
• Must be court-ordered (not just verbal agreement)
• Must have received it consistently for 6+ months
• Example: You earn $60,000, receive $500/month support
• For mortgage purposes: Your income = $60,000 + ($500 × 12) = $66,000

Documentation Needed:
• Court order specifying amount and duration
• Proof of payment (bank statements showing deposits/withdrawals for past 6 months)
• If support ends soon (e.g., in 2 years when child turns 18), lenders may NOT count that income