Calgary Sun – May 21, 2005

A divorce often signals a new beginning for individuals. Moving from “coupledom” back to the single life can mean new homes and new mortgages after years of sharing the bucks.

So we decided to ask the experts: If my marriage is ending, how do I ensure my chance at solo home ownership is just beginning.

Every couple should keep an eye on their individual credit rating from the time they walk down the aisle, says Trish Hart, mortgage agent with Invis.

“You have to watch that credit rating. People often forget to make that minimum payment on the credit card and once a couple separates, a poor credit rating can make it very difficult to get a new mortgage,” says Hart.

Often, especially in long marriages, the husband or wife may not have any credit which can pose a problem, adds Hart.

“If the husband is the breadwinner, the wife may not even have a sole credit card under her name. I think it’s imperative to get a credit card under your name, even if it only has a $500 limit. Banks want to see some credit or a mortgage can be very difficult to obtain.”

Couples who are in the process of obtaining a divorce often have children, which can really affect the way a mortgage application is handled, says Invis mortgage broker Marg Scott.

“I have a lot of couples with children who come in without a separation agreement and I think that is the most important thing to obtain if you want to divvy up finances, a mortgage or apply for an independent mortgage,” says Scott.

A separation agreement outlines the way the couple wants to separate financially, including child-support payments, and having that in writing forces people to look at every angle.

“You really have to have that in place. Create a plan with how you are going to divy up the debt. If you already own a home, how are you going to split the equity? Is the debt a certain person’s responsibility?” says Scott. “When children are involved, the support payments should be outlined.”
Divorce can be a very stressful time so contacting a mortgage broker can ease a lot of the pressure, adds Scott.

“We do all the running around and years of dealing with so many different lenders gives us the expertise that is necessary to get you the best mortgage possible.”

If you have a question for the experts, e-mail Andrea Radke at andrea.radke@calgarysun.com

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