Whether you are separated or already in the process of a divorce, you are probably thinking a lot about how to shift into your new life as a single person. Unfortunately, you will also likely need to spend some time disentangling your finances from those of your former partner. Just as you will likely turn to friends and family for emotional support during this challenging time, a Calgary mortgage broker can help you find your way forward with expert advice and a variety of services, including pre-approval guidance, debt consolidation and refinancing.
Developing a financial plan for the future might seem like something to deal with after everything with your divorce is finalized, but in reality, it is an essential step on the path towards independence.
Assessing Your Situation
You and your former partner need to determine if one of you will be staying in your current home, or if you will sell it. Resolve these emotional questions first:
- Will keeping your home bring up difficult memories, or would it be more comforting to stay?
- Would it be best to move somewhere new and start fresh?
- If you have children, will the transition be easier if they remain in a familiar neighbourhood?
After settling these tough issues, move on to what makes the most sense financially
- If you decide to sell, you will want to get the most you possibly can. A Calgary mortgage broker will help ensure the financing is attractive to buyers on today’s market, and she can also introduce you to skilled real estate professionals who know how to obtain the best selling price.
- If your former partner will be staying in the home and buying you out, you will have the advantage of cash in hand to start fresh, but if he or she doesn’t refinance the mortgage, understand that many lenders will continue to consider both of you liable for the loan, which will make buying a new home extremely challenging.
- If you choose to keep your home and buy out your former partner, you will need to be able to come up with the necessary funds. Refinancing is one way to access your share of the equity in your home. Remember, this will mean you will be making a larger mortgage payment with just one income. Your Calgary mortgage broker can advise you on ways to improve your credit rating and use budget for refinancing.
- For those who decide to wait for the best possible price, it is possible to keep owning the house jointly, but be sure to clearly spell out the terms. You want to avoid any situation where your former partner’s decision to stop paying could cause damage to your credit.
Moving Toward Financial Independence
As a married couple, your lives and and finances were joined together, and they will remain linked until your debts are separated and paid off. You need to do everything possible to maintain or improve your credit rating.
- If you don’t already have a credit card in your own name, get one and use it responsibly.
- Close any joint credit cards. If you can’t pay off any accounts right away, freeze them so no one can add more debt.
- Keep payments up to date, even if you have to only make minimum payments or pay some of your spouse’s share. Maintaining your credit is crucial, and you will may be able to recover any funds you paid later on in the divorce process.
Buying Your Next Home
As a single homeowner, you will be solely responsible for the payments, maintenance and any repairs, so budgeting might be more of a concern than ever before. If you are uncertain of how much you need for a down payment or what type of mortgage will work best for your circumstances, Mortgages by Candice has developed this list of frequently asked questions to answer many common concerns about purchasing a home.
When you are planning your financial future, it’s never too soon to seek expert help. Even if you have not yet begun divorce proceedings, your Calgary mortgage broker can help you assess your credit and get your on the path toward owning your own home. When you’re ready, Candice Light will provide you with a variety of mortgage options to help you get pre-approval for financing and locked in to a great mortgage rate.
For more information, contact Mortgages by Candice today.