Humber/Ontario Real Estate Course 1 Exam Practice

Peterson wants to refinance the matrimonial home he shares with his wife, Ellie, by obtaining a second mortgage. Ellie is not listed as an owner on title. Does Ellie need to provide consent for the mortgage?

1. Yes, Ellie must consent to the refinancing.

2. No, if Ellie is temporarily staying at the family cottage when the mortgage is being arranged, consent is not required.

3. No, as Ellie is not an owner of the home, consent is not required.

4. No, Ellie's consent is only required at the point of sale.

The correct answer is: Yes, Ellie must consent to the refinancing.

The correct answer is that Ellie must consent to the refinancing. In Ontario, spousal rights are protected under family law, which generally means that even if one spouse is not listed on the title of the property, the other spouse’s interests are still recognized. When refinancing a matrimonial home, obtaining consent from the non-titled spouse is essential. This is to ensure that the rights of both spouses are respected, especially considering that the home is deemed to be a family asset. Even if Ellie is not listed as an owner, her legal rights regarding the matrimonial home still warrant her involvement in decisions that could impact the equity or financial obligations regarding the property. This is an important factor to maintain fairness and prevent any disputes in the future related to ownership interests and rights over property.