Separation is not just an emotional turning point — it’s a major financial reset. Whether you’re starting fresh on your own or planning for your children’s future, one of the most common and pressing questions we hear is:
Can I afford to buy a new home after separation?
The answer isn’t always simple, but with the right guidance — and the right mortgage broker — you can gain the clarity and confidence you need to take your next step.
This article outlines what to consider, what you can expect financially, and how to set yourself up for success in your post-separation home ownership journey.
Where Do You Start?
Before looking at listings or dreaming about moving in, it’s important to understand your financial situation today — and what lenders will consider when reviewing your application.
A mortgage broker in Australia can help you:
- Calculate your borrowing power
- Review your income, expenses, and debts
- Assess your eligibility for low deposit loans, government schemes, or single parent programs
- Compare options from over 50 lenders
The goal? To give you a realistic view of what you can afford — and show you a pathway to get there.
1. Understanding Your Borrowing Power
Your borrowing power is the amount a lender is willing to offer you based on your current situation. It’s influenced by:
- Your income (salary, casual, self-employed, child support, Centrelink)
- Your expenses and liabilities
- Credit score and history
- Deposit or equity amount
- Type of property and location
If you’re wondering whether your income as a single person, or with children, will be enough — you’re not alone. Many lenders will accept child support or government benefits as income, and there are lenders who work specifically with low income home loan borrowers.
2. What Upfront Costs Will I Need to Cover?
You don’t just need to think about repayments. When buying a home, upfront costs often include:
- Deposit (usually 5%–20%)
- Stamp duty (may be waived for eligible first home buyers)
- Lender’s Mortgage Insurance (LMI)
- Conveyancing/legal fees
- Building/pest inspections
- Loan application or establishment fees
A mortgage broker can help reduce these costs by:
- Matching you with no-fee mortgage products
- Recommending lenders who waive or discount fees
- Exploring guarantor loan options (where a family member supports your application)
3. Can I Get a Home Loan on One Income?
Yes, but it depends on:
- Your debt-to-income ratio
- The stability of your job (e.g. full-time vs casual vs self-employed)
- Your credit history and past loan conduct
- Whether you receive child support, family tax benefits, or other income
A good broker knows which lenders are flexible — especially with single applicants, single parents, or those who’ve experienced recent life changes. We help you present your application to maximise your chances of approval.
4. Loan Types That May Suit You
Depending on your situation, we may recommend:
- Variable home loans (flexibility to make extra repayments)
- Fixed-rate loans (predictability during uncertain financial periods)
- Split loans (a combination of both)
- Interest-only periods if you’re managing cash flow
- Offset accounts to reduce interest without locking in extra funds
A mortgage broker helps you choose a loan structure that fits your lifestyle, not just a repayment figure that fits your budget.
5. Should I Buy Now or Wait?
It’s normal to feel unsure about timing, but here are a few signs you might be ready:
✅ You’ve finalised your property settlement agreement
✅ You have stable income or support payments
✅ Your expenses are predictable
✅ You’ve spoken to a broker about borrowing capacity
✅ You’re emotionally ready for a fresh start
Even if you’re not ready to apply today, speaking with a broker now helps you plan for what’s next.
6. Where Can I Get the Best Deal?
Banks only show you their own products. Mortgage brokers, on the other hand, compare mortgage rates and features across 50+ lenders — including non-bank lenders, credit unions, and online mortgage providers.
We help you:
- Find the lowest mortgage rates in Australia for your situation
- Understand broker vs bank home loan differences
- Avoid unnecessary fees
- Negotiate with lenders who are more flexible with low deposit or non-traditional income applications
Real Example: Emily’s Journey
Emily separated after 15 years of marriage. She had two kids, worked part-time, and had little savings after the split.
“I didn’t think I could buy again — not as a single mum on a part-time wage. But my broker helped me understand what I could afford, found a lender who accepted my income including child support, and walked me through the whole thing. Now my kids and I have a new home we love.”
What Support Is Available?
Depending on your situation, you might be eligible for:
- First Home Buyer grants
- Stamp duty concessions
- Single Parent Guarantee Scheme
- Low deposit home loans
- Access to family pledge or guarantor loans
We’ll guide you through these options to help minimise your upfront costs and improve your chances of approval.
What If My Credit Isn’t Perfect?
Don’t worry — life happens. If your credit was affected by shared debts, missed repayments, or financial stress during separation, it’s not the end of the road.
There are bad credit mortgage brokers who work with specialist lenders to help people rebuild — and buy again.
How to Get Started
Here’s what we suggest:
Step 1: Book a free chat with a mortgage broker
This allows us to assess your situation confidentially and give you tailored advice.
Step 2: Review your income and expenses
We’ll help you build a clear financial snapshot — the first step toward planning a purchase.
Step 3: Check your borrowing power
Using lender calculators and our broker knowledge, we’ll show you what’s possible.
Step 4: Discuss the best loan types
You’ll get a full breakdown of rates, repayments, and lender criteria.
Step 5: Plan your timeline
Whether you’re ready now or in 6 months, we’ll map out a strategy to get you there.
Why Choose Money Tree Mortgage Brokers?
We specialise in helping clients after separation. Our approach is:
- Personalised – We get to know your unique story
- Compassionate – No pressure, no judgement
- Connected – Access to 50+ lenders and industry-only rates
- Committed – We support you from pre-approval to settlement
Ready to take the first step?
Let’s explore what’s possible — and help you move forward with confidence.
