Separation is one of life’s most challenging experiences — and when there’s a mortgage involved, the financial decisions can feel just as overwhelming as the emotional ones.
Whether you’re in Sydney, Melbourne, Brisbane, Perth, Adelaide, Hobart, Canberra, or Darwin, the question we hear most from separated clients is:
“Should I keep the house, sell it, or refinance?”
With the latest home loan market shifts — including Bank of Queensland’s (BOQ) cut to a market-leading 4.89% fixed rate for two years — the decision-making process has more moving parts than ever. Now, with the Reserve Bank of Australia (RBA) tipped to potentially cut the cash rate at its next meeting, lenders are aggressively competing for borrowers, making it a prime time to review your options.
Why Your Mortgage Needs Immediate Attention Post-Separation
When a relationship ends, your shared mortgage doesn’t disappear. You remain equally responsible for the debt until it’s refinanced, repaid, or otherwise resolved through your property settlement.
The key is acting early — the sooner you know your options, the sooner you can protect your credit score, prevent late payments, and move forward.
Common scenarios include:
- Refinancing the loan into your name only
- Selling the property and splitting the proceeds
- Buying out your ex-partner’s share
- Restructuring the loan to make repayments more manageable on one income
How Current Rate Cuts Change the Conversation
Right now, there’s an unusual window of opportunity:
- BOQ has the lowest standard two-year fixed rate in the market at 4.89% for owner-occupiers with a 20% deposit
- NAB trimmed fixed rates to as low as 5.19%, joining ANZ in the under-5.2% club for big four banks
- 18 lenders now have at least one fixed rate under 5%
If the RBA cuts the cash rate and lenders pass it on in full:
- Over 30 lenders could offer at least one variable rate under 5.25%
- More than 70 lenders could have variable rates under 5.5%
- The average owner-occupier could save around $90 per month on a $600,000 loan
For separated homeowners deciding whether to refinance or keep their property, these changes could mean lower repayments and more flexibility.
Why Work With a Mortgage Broker During Separation
A mortgage broker gives you more than just loan options — they give you a plan. Unlike a bank, which offers only its own products, a broker compares 50+ lenders to find the most competitive fit for your unique situation.
Key benefits include:
- Unbiased advice that puts your needs first
- Access to specialist lenders for single income, self-employed, or bad credit scenarios
- Experience structuring loans post-separation to meet property settlement timelines
- Guidance on whether fixed, variable, or split rates suit your new budget
Step-by-Step: Your Mortgage Action Plan Post-Separation
1. Assess Your Financial Position
- Calculate your borrowing power
- Review all income sources (salary, overtime, child support, Centrelink)
- Identify debts and liabilities
- Understand your equity position
2. Explore Your Options
- Keep the home: Refinance into your own name
- Sell: Pay out the loan and split remaining equity
- Buy elsewhere: Use your settlement funds and savings to purchase a new property
3. Choose the Right Loan Structure
A broker will help you choose between:
- Fixed rates (stability, especially if you want predictable repayments)
- Variable rates (flexibility to pay off sooner)
- Split loans (balance of stability and flexibility)
- Loans with offset accounts or redraw facilities to reduce interest
4. Get Pre-Approved
Especially if you’re buying your ex-partner’s share, pre-approval ensures you can move quickly and meet settlement deadlines.
Capital City Snapshots: What’s Happening Near You
- Sydney: High property values mean strong equity positions but larger loan amounts. Competitive rates can help reduce big repayments.
- Melbourne: Intense lender competition — ideal for refinancing negotiations.
- Brisbane: Affordable growth suburbs and stable lending appetite.
- Perth: Rising market; refinancing could free up equity for investments.
- Adelaide: Lower average loan sizes, easier to service on one income.
- Hobart: Limited stock but high equity gains for long-term owners.
- Canberra: Government employment bolsters borrowing power.
- Darwin: Niche lender options available; brokers can match specific criteria.
Real Client Story: Michelle in Adelaide
“When my marriage ended, I didn’t think I could keep the family home. My broker reviewed my finances, found a lender offering a fixed rate under 5%, and helped me refinance in my name. My repayments dropped, and I was able to stay where my kids feel secure.”
What Happens If You Do Nothing?
If you delay action:
- You remain liable for the mortgage even if you’ve moved out
- Missed payments can harm your credit score
- You may miss out on historically low fixed rates
- Property settlement negotiations could be harder without a clear lending plan
Your Next Step
The combination of competitive fixed rates, potential RBA cuts, and lender competition means there’s no better time to get advice.
At Money Tree Mortgage Brokers, we:
- Compare rates across 50+ lenders
- Understand the intersection of family law and mortgage structuring
- Negotiate better terms for your unique situation
- Support clients across all of Australia’s capital cities and regional areas
📅 Book Your Free, No-Obligation Chat
Don’t let uncertainty cost you money — or your home. Whether you want to keep the property, refinance, or buy elsewhere, our expert brokers will guide you every step of the way.
