Separation is one of life's most significant financial events. Understanding your position early gives you options - and options are what you need most during this time.
Your borrowing capacity is assessed on your individual income and expenses as a single borrower. Child support, spousal maintenance, or rental income can all be included where applicable. We calculate your realistic capacity based on your actual circumstances.
If you owned a property jointly, you may be entitled to equity from that property as part of your settlement. This equity can be used as a deposit for your next purchase. Coordinating your lending and settlement timeline matters - we can help.
Joint debts including the former family home mortgage still appear on your credit file while you are named on them. We factor this into your assessment from the start so there are no surprises.
Child support payments you make reduce your assessed income. Child support you receive can sometimes be included as income. We know which lenders are most flexible and structure your application accordingly.
The best thing you can do is understand your position early - before the property settlement is finalised if possible. Book a confidential chat with Jason or Steve and we will walk you through your options.
When a relationship breaks down, the shared home and the mortgage attached to it need to be dealt with. There are three common outcomes: one person buys the other out and takes on the mortgage alone, the property is sold and the proceeds divided, or both parties agree to continue co-owning the property temporarily.
Each option has financial, legal and practical implications. Which is right depends on your equity position, your individual income, your credit profile, and what the family law settlement requires. Lendology works with separating clients every week and understands the lending market for each of these scenarios.
A buyout requires you to qualify for the existing mortgage - or a refinanced version of it - on your income alone. This is the most common challenge in separation finance. If your income was assessed jointly when the loan was taken out, qualifying individually may require a different lender, a different loan structure, or a higher deposit.
Lendology assesses your individual serviceability across 60+ lenders. Some lenders are significantly more flexible than others for separation scenarios - particularly for clients who receive child support, maintenance, or who have recently returned to work after time out of the workforce.
Child support and spousal maintenance payments count as income for lending purposes at most lenders - but typically only when they are formalised through a court order or binding financial agreement and have been received consistently for at least three months. Lendology identifies the lenders with the most favourable treatment of these income types.
A property settlement agreement or court order determines how property is to be divided. But the agreement does not automatically change who is liable on the mortgage - that requires a formal refinance or discharge with the lender.
Until the mortgage is refinanced into one name only, both parties remain jointly and severally liable. This means a missed payment by either party affects both credit files, and both parties are exposed to the other's financial decisions regarding the property. Moving quickly to resolve the mortgage is important for both parties.
Once the settlement is finalised and equity is released, many separating clients want to purchase a new property as quickly as possible. This can be challenging because the settlement process often takes time, credit files may show joint debt, and income changes during separation can complicate serviceability assessments.
Lendology works through each of these challenges. We assess your capacity based on your current individual income, identify lenders whose policies accommodate separation scenarios, and structure the new loan to maximise your borrowing capacity and minimise ongoing costs.
Yes. Being separated or divorced does not prevent you from applying for a home loan. Lendology assesses your individual income, the equity available from the settlement, and your credit position to identify the right lender and structure for your situation.
Child support paid reduces your net income and therefore your borrowing capacity. Child support received is treated as income by most lenders - but typically requires a formal agreement and a history of consistent receipt. Lendology identifies lenders with the most favourable policies.
In most cases yes - lenders want to see the settlement agreement or court order before approving a buyout refinance or new purchase. However, Lendology can assess your capacity in advance so you know exactly where you stand and can act quickly once the settlement is complete.
If your ex-partner refuses to cooperate with a required refinance, this may need to be resolved through the family court. Your family lawyer can assist. Lendology can provide documentation of your individual borrowing capacity to support court proceedings if required.