Homeownership After Divorce: How to Qualify for a Mortgage on Your Own

Edith Parinas
Mar 5
4 min read

Divorce is a life transition that comes with emotional and financial challenges—including where you’ll live next.

Whether you’re staying in the family home or looking for a fresh start in a new place, navigating homeownership after divorce can feel overwhelming.

But here’s the good news: You CAN qualify for a mortgage on your own! With the right strategy, you can turn this next chapter into a fresh opportunity for financial independence and stability.

Let’s walk through what you need to know about getting a mortgage after a divorce, from qualifying with a single income to using spousal support to help with approval.

Step 1: Assess Your Financial Situation

Before jumping into house hunting, take a step back and review your financial standing. Ask yourself:

✔ Do I want to keep the existing home or buy a new one?

✔ How has my income changed? (Single income vs. dual income)

✔ What debts do I now have? (Shared debts, legal fees, credit cards)

✔ Do I receive or pay spousal/child support?

Getting a clear picture of where you stand will help determine what mortgage options are realistic for you.

Step 2: Decide Whether to Keep or Sell the Family Home

If you own a home with your ex-spouse, you’ll need to decide whether:

🏡 You keep it (by buying out your ex’s share).

🏡 You sell it (and split the proceeds).

🏡 One of you refinances it in your own name.

Things to consider if you want to keep the home:

✅ Can you qualify for a mortgage on your own?

✅ Can you afford property taxes, maintenance, and monthly payments?

✅ Do you have enough equity or savings for a buyout?

If you sell the home:

✅ The profit from the sale can help with a down payment on a new place.

✅ You get a fresh start, financially and emotionally.

✅ You may qualify for first-time homebuyer benefits again (if you’ve been off title for at least four years).

If keeping the home isn’t financially feasible, it’s okay to start fresh. A smaller home or a new location could be exactly what you need for a fresh start and financial peace of mind.

Step 3: Qualifying for a Mortgage on a Single Income

With only one income, lenders will look closely at your ability to afford mortgage payments. Here’s how to strengthen your application:

✔ Use Spousal or Child Support as Income

Lenders often consider spousal and child support as part of your income—as long as:

🔹 The payments are court-ordered or in a legal separation agreement.

🔹 You’ve been receiving them consistently for at least three months.

🔹 The payments will continue for at least three more years.

If your support payments meet these requirements, they can boost your income and help you qualify for a larger mortgage.

✔ Improve Your Debt-to-Income Ratio

Lenders compare how much debt you have vs. how much income you make (this is called your debt-to-income ratio). The lower your debts, the stronger your mortgage application.

To improve your approval chances:

✅ Pay down credit cards and loans.

✅ Avoid taking on new debt (like a car loan).

✅ Consider consolidating debt into a lower-interest option.

✔ Build (or Rebuild) Your Credit

If your ex handled most of the finances, your credit history might be limited. To strengthen your credit score:

✅ Open a credit card in your name and use it responsibly.

✅ Make all debt payments on time.

✅ Keep credit card balances low (below 30% of the limit).

A higher credit score = better mortgage rates and options!

Step 4: Consider a Co-Signer If Needed

If you don’t qualify for a mortgage on your own, a co-signer could help. This is usually a family member (like a parent or sibling) who agrees to take financial responsibility if you can’t make payments.

🛑 Important: A co-signer’s credit and income are factored into your mortgage approval, but they are also legally tied to your mortgage—so it’s a big commitment.

Step 5: Explore First-Time Homebuyer Incentives

Did you know that if you’ve been off a home title for at least four years, you may qualify as a first-time homebuyer again? 🎉

🔹 First-Time Home Buyers' Tax Credit – A tax credit that can help with closing costs.

🔹 Home Buyers’ Plan (HBP) – Withdraw up to $35,000 from your RRSPs for a down payment—tax-free!

🔹 Land Transfer Tax Rebates (Available in some provinces).

Every dollar saved makes a difference when you’re starting fresh!

Step 6: Get Pre-Approved & Secure the Best Mortgage

Once you have your finances in order, the next step is to get pre-approved for a mortgage. This gives you:

✅ A clear budget for house hunting.

✅ Locked-in interest rates for up to 120 days.

✅ Confidence when making offers on a home.

A mortgage broker (like me!) can shop multiple lenders to find the best rates and terms for your situation—whether you’re buying alone, using spousal support, or considering a co-signer.