Real Estate

Mortgage with or without spouse

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  • Jan 5th, 2021 8:57 pm
Newbie
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Aug 18, 2018
75 posts
79 upvotes

Mortgage with or without spouse

Hi All,

I'm pretty new to Mortgage in Canada.
What is the consideration when deciding to put your spouse name in the mortgage or not?
From what I read if you don't put your spouse in mortgage the house will be only on your name and if you are married (and common laws?) it will be a matrimonial home and doesn't matter who's name in the property.
Especially if your spouse is not currently working, is there any benefit putting your spouse name?

Thank you.
15 replies
Newbie
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Aug 18, 2018
75 posts
79 upvotes
GTAViews wrote: The benefit of including your spouse in the mortgage can potentially increase how much you can be approved for (accounting for their income into the equation). If you don't include your spouse's name on the title and both of you reside in the property, you are correct, it will be a matrimonial home. Even though their name won't be on title, I believe you will need their consent to sell the home.
Thanks.
That's why I don't see any benefit putting your spouse name in the mortgage when he/she is not currently working.

*For your matrimonial home
Sr. Member
Jan 22, 2017
694 posts
1160 upvotes
If both the spouses are working, can both of them claim First time home buyers benefits while buying separate properties
Deal Addict
Jan 15, 2010
1629 posts
2027 upvotes
Toronto
I'm not 100% sure the house would be matrimonial home for common law partners if both aren't on the mortgage/title. But you would have to cover all housing related expenses yourself. And the second you get married half that house is gone anyway.
Newbie
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Aug 18, 2018
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atom2020 wrote: These automatic property sharing provisions only apply to married spouses. If you are in a common law relationship, you are not entitled to an equalization payment, but may be entitled to a payment from your spouse to pay you back for a direct or indirect contribution to property that he or she owns. These claims are referred to as trust claims.

For more information on common law division of property:
https://www.cleo.on.ca/en/publications/propertydiv

Regarding your situation if you are married do keep in mind your spouse has a right to equity in this property as it is the matrimonial home. Some people believe that by not putting a spouse on the mortgage they somehow don't have access to half the property.

With all the buying going on I am afraid people are not considering that the divorce rates are expected to go up after this pandemic. The courts are already busier with family law matters, and lawyers are seeing an increase in phone calls. My industry has been more busier than ever and I work in divorce/separation. I have not seen this level of crazy ever before. Just something to be mindful of.
Noted. I think it's fair, especially if your spouse is a housewife (or househusband) that spends their time taking care of the house & kids.

Interesting. Is the increase of stay at the home time together causing the divorce, or are there any other reasons?
Deal Addict
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Nov 2, 2020
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jimmod wrote: Noted. I think it's fair, especially if your spouse is a housewife (or househusband) that spends their time taking care of the house & kids.

Interesting. Is the increase of stay at the home time together causing the divorce, or are there any other reasons?
I think that is part of it. Some people are spending so much time together now whereas before they were going to work. We are also seeing an increase in requests for mediators and therapists throughout the pandemic. Also an increase of substance use, intimate partner violence, and mental health issues is contributing to some of it. Some people were already on the brink of having a divorce and this just caused more stress, plus job loss. It was not something I was expecting to see but I remember China having an increase as well after the lockdown measures. It is just another negative consequence of all of this virus. Hopefully we get out of it soon!!!!!
Deal Fanatic
Jan 15, 2017
5750 posts
6123 upvotes
Ottawa
Depends on your province of residence. In some provinces, spouse must go on title and therefore on mortgage.
Newbie
Jul 28, 2014
19 posts
15 upvotes
West Vancouver, BC
If one of you will start a business in the future or is already an entrepreneur, put the house title in the other spouse's name only. That way, if the business gets sued, they can't go after the house.
Newbie
Jul 28, 2014
19 posts
15 upvotes
West Vancouver, BC
On the other hand, if you think you'd ever use the property for rental income, better to have the no or lower income spouse only own it to avoid/minimize taxes
Newbie
User avatar
Aug 18, 2018
75 posts
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mrllrm wrote: If one of you will start a business in the future or is already an entrepreneur, put the house title in the other spouse's name only. That way, if the business gets sued, they can't go after the house.
Isn't incorporate will protect your personal assets? Therefore your house should be safe.
Newbie
Jul 28, 2014
19 posts
15 upvotes
West Vancouver, BC
Not an expert, but I had heard that they can sue both you as a person and the corporation. And they can sue the directors of the corporation which is probably you as well. Creditors (to whom the corporation owes money) can go after directors' assets in the case of bankruptcy. But they can't go after your spouse's assets or other shareholders.
Deal Guru
User avatar
Feb 2, 2014
11233 posts
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Toronto
jimmod wrote: Hi All,

I'm pretty new to Mortgage in Canada.
What is the consideration when deciding to put your spouse name in the mortgage or not?
From what I read if you don't put your spouse in mortgage the house will be only on your name and if you are married (and common laws?) it will be a matrimonial home and doesn't matter who's name in the property.
Especially if your spouse is not currently working, is there any benefit putting your spouse name?

Thank you.
If the spouse has no income, no benefit. If they have no income AND debts, then it actually hurts your application.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Sr. Member
Mar 28, 2017
616 posts
495 upvotes
jimmod wrote: Hi All,

I'm pretty new to Mortgage in Canada.
What is the consideration when deciding to put your spouse name in the mortgage or not?
From what I read if you don't put your spouse in mortgage the house will be only on your name and if you are married (and common laws?) it will be a matrimonial home and doesn't matter who's name in the property.
Especially if your spouse is not currently working, is there any benefit putting your spouse name?

Thank you.
I don't recommend doing 2 people on titles if you can avoid it. Each person can have 1 principal residence taxes free. It's better to have 1 each to avoid taxes in the future if you plan to sell.
Deal Addict
Jan 7, 2005
1127 posts
660 upvotes
Toronto
CdnRealEstateGuy wrote: If the spouse has no income, no benefit. If they have no income AND debts, then it actually hurts your application.
This is actually very true. Learned it the hard way, with real pains.
Member
Apr 6, 2019
220 posts
78 upvotes
GTA
johnnyepy666 wrote: I don't recommend doing 2 people on titles if you can avoid it. Each person can have 1 principal residence taxes free. It's better to have 1 each to avoid taxes in the future if you plan to sell.
Wrong info, correction please.

1 principal residence per family is allowed, not per spouse.
Sr. Member
Mar 28, 2017
616 posts
495 upvotes
webester wrote: Wrong info, correction please.

1 principal residence per family is allowed, not per spouse.
Actually I wouldn't even get married, it's just a title means shit.

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