When a relationship ends, deciding what happens to the family home can be one of the most emotional — and financially complex — parts of separation.
For many, the dream is to stay in the home for stability, especially if there are children involved. But the big question is: Can you afford it on your own?
Right now, with Bank of Queensland (BOQ) cutting its two-year fixed rate to 4.89% and the Reserve Bank of Australia (RBA) signalling potential cash rate cuts, the answer for some Australians may be “yes” when it might have been “no” just months ago.
Why Keeping the Family Home Matters
For separated homeowners in Sydney, Melbourne, Brisbane, Perth, Adelaide, Hobart, Canberra, and Darwin, keeping the family home can mean:
- Providing stability for children
- Staying in a familiar community
- Avoiding the upheaval of selling and buying in a tight market
- Maintaining a property that has sentimental value
However, the decision must be grounded in financial reality — and that’s where a mortgage broker comes in.
How Today’s Rate Environment Works in Your Favour
The recent rate moves are creating unique opportunities:
- BOQ’s 4.89% two-year fixed rate is now the sharpest in the market for owner-occupiers with a 20% deposit
- NAB has trimmed its two-year fixed rates to 5.19%, matching ANZ among the big four
- 18 lenders currently offer fixed rates under 5%
- If the RBA cuts rates, more than 30 lenders could have variable rates under 5.25%
Lower rates mean lower repayments, which could make taking on the mortgage alone far more achievable.
The Financial Hurdles You’ll Need to Clear
Even with rates dropping, keeping the home will require:
- Refinancing the mortgage into your sole name
- Buying out your ex-partner’s share (often from equity in the home)
- Proving to the lender you can afford repayments on a single income
- Managing any Lenders Mortgage Insurance (LMI) if borrowing above 80% LVR
How a Mortgage Broker Can Help You Stay
A mortgage broker will:
- Review your financial position post-separation
- Calculate your borrowing power
- Identify lenders who accept your income type (including child support, Centrelink, overtime)
- Compare 50+ lenders to find the lowest rates and most flexible terms
- Manage the refinance application and paperwork
- Liaise with solicitors to meet property settlement deadlines
Loan Options to Consider
Fixed-Rate Loans
Lock in a rate under 5% for repayment certainty during your transition.
Variable Loans
Benefit from potential future RBA rate cuts with flexible repayment options.
Split Loans
Combine fixed and variable components to balance certainty and flexibility.
Offset Accounts
Reduce interest payable while keeping access to your savings.
Capital City Insights: Keeping the Home in Your Area
- Sydney: High property values may provide the equity you need for a buyout.
- Melbourne: Competitive fixed rates make refinancing attractive.
- Brisbane: Affordable outer suburbs can help with serviceability.
- Perth: Rising values give refinancing leverage.
- Adelaide: Lower median prices make single-income ownership realistic.
- Hobart: Equity growth over recent years can help fund a buyout.
- Canberra: Stable incomes in the public sector help with lender approval.
- Darwin: Regional lending policies can vary, but brokers know where to go.
Case Study: Lisa in Hobart
“After separating, I wanted to keep our home for my kids. My broker found a fixed rate under 5%, refinanced the loan into my name, and worked with my solicitor to finalise the property settlement. I’m now paying less than I expected — and we didn’t have to move.”
What If You Decide Not to Keep the Home?
If it’s not financially viable, your broker can:
- Help sell and find a new home within your budget
- Use your equity for a deposit on a smaller property
- Find lenders who specialise in first home buyer products for those re-entering the market
Why Act Now
With a potential RBA cut on the horizon and lenders already competing with sub-5% fixed rates, acting now could lock in affordability for years. Waiting may mean missing out if the market shifts.
📅 Book Your Free, No-Obligation Chat
If you’re separated and want to explore keeping the family home, Money Tree Mortgage Brokers can help you understand your options and secure a competitive deal.
