A relationship breakdown is never easy — emotionally or financially. For many Australians, one of the biggest challenges after separation is what to do with the mortgage.
With Bank of Queensland (BOQ) dropping its two-year fixed rate to 4.89% and the Reserve Bank of Australia (RBA) tipped to cut the cash rate, refinancing could help you take control of your financial future, reduce stress, and move forward with confidence.
Whether you live in Sydney, Melbourne, Brisbane, Perth, Adelaide, Hobart, Canberra, or Darwin, understanding your refinance options after separation is key.
Why Refinancing After Separation Matters
- Financial Independence – Remove your ex-partner from the loan so you have full control.
- Lower Repayments – Reduce your interest rate to make repayments more affordable.
- Property Settlement – Access equity to buy out your ex-partner’s share.
- Fresh Start – Adjust your loan term, structure, and features to suit your new circumstances.
The Current Rate Advantage
BOQ’s 4.89% two-year fixed rate is the lowest standard home loan rate in the market for eligible owner-occupiers.
- NAB and ANZ follow closely at 5.19% fixed for two years.
- 18 lenders now have sub-5% fixed rates.
- An RBA rate cut could see more than 30 lenders offering variable rates under 5.25%.
Steps to Refinance After Separation
Step 1: Review Your Financial Position
Assess your income, expenses, debts, and assets. A broker can help determine your borrowing capacity post-separation.
Step 2: Decide What to Do with the Property
- Buy out your ex-partner
- Sell and split the proceeds
- Keep the property jointly (short-term arrangement)
Step 3: Explore Loan Options
Compare fixed, variable, and split loans from 50+ lenders to find the right fit.
Step 4: Apply and Settle
Your broker handles the paperwork, liaises with lenders, and ensures a smooth refinance process.
Capital City Considerations
- Sydney: High property values = more equity to negotiate better terms.
- Melbourne: Strong lender competition post-separation.
- Brisbane: Lower entry prices make buying out an ex more achievable.
- Perth: Rising values could help you refinance on favourable terms.
- Adelaide: Affordable prices reduce the financial burden of refinancing.
- Hobart: Slower market growth gives breathing room for decisions.
- Canberra: Stable incomes boost refinance approvals.
- Darwin: Regional lending policies may add flexibility.
Rate Savings Example
On a $500,000 loan over 25 years:
- At 6%, repayments are about $3,220/month
- At 4.89%, repayments drop to $2,900/month
That’s a $320 monthly saving, or $3,840 per year — money that can be redirected toward your new goals.
How a Mortgage Broker Can Help
A mortgage broker experienced in post-separation refinancing can:
- Assess your financial position and borrowing capacity
- Find lenders with flexible policies for separated borrowers
- Negotiate better rates and loan features
- Manage the paperwork so you can focus on moving forward
Case Study: Sarah in Perth
“After my separation, I didn’t know where to start. My broker found a sub-5% rate, removed my ex from the mortgage, and structured my loan so I can pay it off faster.”
Why Act Quickly
Post-separation refinancing is often time-sensitive, especially when tied to property settlement deadlines. Acting now could mean securing today’s low rates before market conditions change.
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Don’t navigate post-separation refinancing alone. Let Money Tree Mortgage Brokers compare 50+ lenders and help you secure your financial independence.
