Can I refinance a home loan into
my name only after divorce?

If you want to keep the family home after separation, you will almost certainly need to refinance the joint mortgage into your sole name. This is one of the most common questions we get at Lendology from people navigating property settlement in Adelaide and South Australia.

The short answer is yes — it is possible. But whether it is achievable for you depends on your income, your existing debts, the size of the loan you need, and which lenders you approach. Here is a thorough, honest explanation of what the process actually involves.

What a sole-name refinance actually involves

When you refinance a joint mortgage into your name alone after separation, you are not simply removing one name from the existing loan. You are applying for an entirely new home loan as a sole borrower — the existing joint loan is repaid and discharged, and replaced with a new loan in your name only.

This new loan typically needs to cover:

• The existing joint loan balance (or net of any offset)
• Your partner's equity share — the buyout amount
• Legal and conveyancing costs associated with the title transfer
• Potentially stamp duty, depending on your state and circumstances

The combined figure is what you need to service as a single borrower. This is why some people find that keeping the home is not financially achievable — the new loan is simply too large for one income.

What lenders assess when you apply

Your income

Lenders assess your gross annual income, typically including base salary, regular overtime (usually at 80%), rental income (usually at 80%), child support received, and some government benefits. If you are self-employed or casual, income assessment is more complex and generally more conservative.

Going from two incomes to one is the central challenge. Lenders do not consider your ex-partner's income at all — you are assessed entirely on your own financial position.

Your debts and commitments

Every existing financial commitment reduces your assessed borrowing capacity. Lenders look at car loans, personal loans, other home loans, and credit cards. Credit cards are assessed at their full credit limit — not the current balance — at approximately 3.8% of the limit as a monthly commitment. A $10,000 credit card you never use effectively costs you around $35,000 in borrowing capacity.

HECS/HELP debt also reduces borrowing capacity by reducing your assessed net income.

Your living expenses

Lenders compare your declared living expenses against a benchmark called HEM — the Household Expenditure Measure. They use whichever figure is higher. If you have dependants, the benchmark increases significantly. You cannot understate expenses to improve your borrowing position.

The assessment rate

APRA requires lenders to assess your ability to repay at 3% above the actual interest rate. So if the loan rate is 6.50%, you are assessed at 9.50%. This is the single biggest factor limiting borrowing power for most applicants and is worth understanding before you go into any settlement negotiations.

Do you need Consent Orders first?

This is one of the most practically important questions, and the answer varies by lender.

Some lenders will proceed with a sole-name refinance based on a signed separation agreement or a Binding Financial Agreement — they do not require the matter to be through the Family Court first. Others require Consent Orders to be in place before they will lend.

This matters because Consent Orders can take several months to finalise, and during that time both parties remain jointly liable for the existing mortgage. A broker who understands separation finance can identify which lenders align with your legal timeline and help you avoid unnecessary delays.

Getting legal and financial advice at the same time — rather than sequentially — makes a significant difference to how smoothly this process goes.

The step-by-step process

What documents do you need?

Every lender has slightly different requirements but typically you will need:

• Two to three recent payslips and your last two tax returns with notices of assessment
• 90 days of bank statements across all accounts
• Statements for all existing loans and credit cards
• Your separation agreement, BFA, or Consent Orders
• Details of any child support arrangements — CSA assessment letter if applicable
• Details of any government benefits received
• HECS/HELP balance confirmation from MyGov

Having these documents organised before you start the process makes a meaningful difference to turnaround times.

What if the numbers don't work?

If the loan required is too large to service on your income alone, you have several options worth exploring before concluding that keeping the home is impossible:

• Extend the loan term. Refinancing to a 30-year term (or starting fresh at 30 years) reduces monthly repayments and therefore reduces the income required to service the loan.
• Negotiate the buyout figure. If the agreed property value is based on optimistic expectations, a more conservative valuation may reduce the buyout required.
• Reduce other debts first. Paying down or closing a credit card before applying can materially improve borrowing capacity.
• Consider a guarantor. Some lenders allow a family member to act as guarantor, which can bridge a borrowing gap.
• Explore lender-specific policies. Different lenders assess income, commitments, and expenses differently. A broker who works across 60+ lenders can identify which ones give you the best chance of approval.

What about stamp duty in South Australia?

In South Australia, transferring a property from joint ownership to sole ownership following a relationship breakdown may attract stamp duty — but certain exemptions and concessions may apply. The rules are specific and can change, so this must be confirmed with your conveyancer and a tax adviser rather than assumed either way.