The applicant spouse moved to set aside a mortgage registered against the matrimonial home on the basis that the titled spouse obtained the loan without her knowledge or consent.
The court applied s. 21 of the Family Law Act and held that the non-party lender advanced the funds for value, in good faith, and without notice that the property was a matrimonial home.
The borrower’s statement that he was separated and that the property was not ordinarily occupied by the spouses at separation was deemed sufficient proof under s. 21(3)(c), absent notice to the contrary.
The court declined to set aside the mortgage, but ordered that there be no further dealings with the property pending resolution of the family law proceedings or further court order.
No costs were awarded.
