A relationship breakdown is never easy — but when there’s a mortgage in the mix, the stress can double. If you’ve recently separated, refinancing could be your best step toward financial independence and peace of mind.
With Bank of Queensland (BOQ) now offering a standout two-year fixed rate of 4.89% for eligible borrowers, and the Reserve Bank of Australia (RBA) tipped to cut the cash rate, this might be the most competitive mortgage environment in years. For separated homeowners, that could mean lower repayments, better terms, and more breathing room.
Why Refinancing After Separation Makes Sense
Refinancing your home loan after a breakup can help you:
- Remove your ex-partner from the mortgage
- Take ownership of the property outright
- Secure a lower interest rate to reduce repayments
- Restructure your loan to better suit a single income
- Access equity for a fresh start or new investment
Whether you’re in Sydney, Melbourne, Brisbane, Perth, Adelaide, Hobart, Canberra, or Darwin, the steps are similar — but your property value, local market conditions, and lender appetite can vary.
How Today’s Rate Environment Changes the Game
Right now:
- BOQ’s 4.89% fixed rate is the sharpest standard two-year fixed rate in the market
- NAB recently dropped its two-year fixed rate to 5.19%, joining ANZ at the same level among the big four banks
- 18 lenders have at least one fixed rate under 5%
- If the RBA cuts rates, over 30 lenders could offer variable rates below 5.25%
For someone refinancing after separation, that means more choice and better deals — provided you know where to look.
The Refinancing Process Post-Separation
1. Understand Your Financial Position
Your broker will review:
- All income sources (salary, bonuses, child support, Centrelink)
- Your credit report
- Current property value and equity
- Existing debts and commitments
2. Decide on Your Goal
Are you:
- Keeping the home and buying out your ex?
- Selling and purchasing another property?
- Restructuring to reduce repayments?
3. Compare Loan Options
Your broker can:
- Compare fixed, variable, and split loans
- Negotiate with 50+ lenders
- Find products with offset accounts, redraw facilities, or flexible repayment terms
4. Get Pre-Approved
This ensures you can act quickly and meet any property settlement deadlines.
City-by-City: How Refinancing Plays Out Across Australia
- Sydney: High property values = strong equity for buyouts, but larger loan sizes.
- Melbourne: Intense lender competition, especially in the fixed rate market.
- Brisbane: More affordable suburbs and strong investor interest.
- Perth: Property values rising — refinancing could unlock equity.
- Adelaide: Lower debt levels make refinancing more manageable post-split.
- Hobart: Equity-rich owners can leverage gains from recent years.
- Canberra: Public sector income can improve borrowing power.
- Darwin: Smaller lender pool, but brokers can connect you with niche products.
How Lower Rates Could Boost Your Borrowing Power
If the RBA cuts rates and banks pass it on in full:
- You could save around $90/month on a $600,000 loan
- Lower repayments could improve your serviceability and make refinancing easier
- More lenders may be willing to approve single-income applicants
Case Study: Daniel in Brisbane
“After my separation, I needed to refinance to keep my home. My broker found me a two-year fixed rate under 5% and negotiated lower fees. Now I’m paying less each month and my loan is entirely in my name.”
Why Use a Mortgage Broker Instead of Going Direct
- Choice: Compare dozens of lenders, not just one bank
- Expertise: Brokers understand family law timelines and lender policies
- Access: Many rates and products are broker-only
- Support: Guidance from application to settlement — and beyond
Don’t Wait Too Long
Rates under 5% are competitive now, but markets change quickly. With lenders in a rate war and an RBA decision looming, acting early could lock in a better deal for years to come.
📅 Book Your Free, No-Obligation Chat
Whether you’re buying out your ex, downsizing, or starting fresh, Money Tree Mortgage Brokers can help you compare your refinancing options and move forward with confidence.
