Buying a House After Divorce (Alberta Guide)
Divorce changes more than your day-to-day—it can reshape your finances, credit, and home plans. The good news: with the right documents and timeline, you can buy a home after divorce (or buy out your ex) without unnecessary delays. This guide answers the key questions Albertans ask and is written in a clear Q&A format so search engines and AI assistants can surface direct, trustworthy answers.
Can I buy a house during or after a divorce in Alberta?
Yes. Lenders will approve a mortgage during or after a separation if your file is well-documented. The single most important item is a signed separation agreement (or court order) that spells out who keeps the home, who pays which debts, and the details of child/spousal support. Without this, lenders treat joint obligations as still yours, which can sink your debt ratios.
Bottom line: get the separation agreement in place (or at least a lawyer’s binding minute of settlement) before you write an offer.
What is a Spousal Buyout and how does it work?
A Spousal Buyout lets one partner keep the existing home by paying the other partner their equity share and rolling that payout—and agreed joint debts—into a new mortgage. In Canada, this is typically done under an insured “spousal/relationship breakdown” program with specific rules. Common requirements:
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You must occupy the property as your primary residence.
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A full appraisal supports market value; the buyout amount comes from this value.
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A final separation agreement sets out the equity/division and which debts are paid.
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Only certain debts tied to the relationship may be paid out in the new mortgage.
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Maximum loan-to-value and insurer criteria apply.
If you’re keeping the home, this is often cleaner than selling—no moving, kids stay in the same school, and you lock in predictable costs.
How do child support and spousal support affect approval?
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If you pay support: Lenders treat the payment as a liability that reduces your maximum mortgage. They’ll need the signed agreement/order and three months of proof of payment (bank statements or pay stub deductions).
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If you receive support: Many lenders can use it as qualifying income when it is court-ordered (or in a signed agreement) and consistent for at least three months with proof of deposits. Some ask for six to twelve months of history.
Tip: make payments through traceable methods (not cash) and keep a clean paper trail.
I’m still on the old mortgage with my ex. Can I qualify for a new one?
Maybe. Until you are legally released from the prior mortgage (refinance, sale, or formal assumption), many lenders count that payment against you, so no not unless you have the income to support both mortgages until you are removed.
What down payment can I use after divorce?
Common sources:
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Proceeds of sale or equity released in a Spousal Buyout
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Savings/TFSA (90-day bank history required)
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RRSP Home Buyers’ Plan (HBP) if you meet the “first-time” test (not owner-occupied in the last 4 calendar years)
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Gift from immediate family (gift letter + proof of deposit)
Alberta does not have a provincial land transfer tax, but you should budget for legal fees, title/registration fees, and standard closing costs.
What documents do lenders need for a post-separation purchase?
Identity & consent
Separation & support
Income
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Employment letter (status, salary or hourly rate + hours/week, probation), two recent pay stubs.
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Last two years T4s and NOAs.
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If variable income (overtime/shift/bonus): letter confirming it is regular and expected to continue; lenders average over time.
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If self-employed: two years T1 Generals with business schedules and NOAs (no CRA arrears).
Down payment & assets
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90-day history for each account funding the down payment (all pages).
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Gift letter + proof of deposit (if applicable).
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RRSP statements and HBP form if used.
Property
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Purchase contract, MLS, deposit receipt.
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If Spousal Buyout: full appraisal, current mortgage statement, property tax bill, home insurance, and any condo/HOA fees.
How much can I afford after support is factored in?
Lenders look at GDS/TDS ratios (housing costs vs. income). Support you pay increases TDS and reduces your maximum purchase price; support you receive may count as income if documented and consistent. Because every file is unique, ask for a pre-approval based on your exact support terms and debts before you start house shopping.
What’s the best timing—before or after the divorce is final?
You don’t need a divorce judgment to buy, but you do need a clear, signed separation agreement. If you plan to keep the home, complete the Spousal Buyout and land title changes as soon as the agreement is final, then close out joint accounts to prevent surprises on your credit.
Common mistakes to avoid
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House hunting before the separation agreement is signed.
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Redacting bank statements or missing the 90-day down-payment paper trail.
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Cash support payments with no proof.
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Assuming your ex’s mortgage won’t count against you—get written terms and payment proof.
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Letting property taxes/condo fees fall behind during the process; arrears can delay approvals.
Step-by-step game plan
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Finalize the separation terms in writing (support, debts, property).
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Clean up the credit picture: make minimum payments on time; avoid new loans.
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Pre-approval with documents (income, support, down payment, liabilities).
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If keeping the home: order appraisal and proceed with Spousal Buyout.
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If buying new: write subject-to-financing offer only after pre-approval.
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Lawyer closes the purchase or buyout; update title and insurance.
Alberta-specific notes
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No provincial land transfer tax; expect legal and registration fees instead.
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If married and buying a new home in your sole name, discuss dower rights with your lawyer before removing/adding a spouse on title.
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Condo owners: budget for special assessments and confirm fees early—lenders include them in ratios.
Need a plan built around your separation?
I work with many Albertans navigating separation and mortgage approvals—from Spousal Buyouts to fresh starts. I’ll map out your numbers, paperwork, and lender options before you make any commitments.
Contact
Quick FAQs
Can I qualify if I pay child support?
Yes, but the payment counts in your debt ratios.
Can I use support I receive as income?
Often yes, if it’s court-ordered or in a signed agreement.
Do I need a divorce judgment to buy?
No. A signed separation agreement is what lenders need to assess obligations and affordability.
What if I want to keep our current home?
A Spousal Buyout may allow you to refinance up to insurer-allowable limits, pay your ex their share, and keep the property.
What down-payment proof is required?
90-day account history for each source, plus gift letters and proof of deposit if gifted.