By Jason Given · May 2026 · 7 min read
Privacy note: This story is based on a real client experience. Names, identifying details, and some figures have been adjusted to protect the privacy of the people involved. The lending scenario and outcome are accurate.
The phone call that started everything
When Sarah called us, she had already been told no. Her husband had moved out three months earlier, and she was sitting in the family home in Adelaide's inner south with two children, a mortgage, and the growing fear that she would have to sell the house and uproot everything her kids had known.
Sarah works as an executive assistant. She earns $78,000 a year before tax. She is good at her job, reliable, and had never missed a mortgage payment in the nine years they had owned the home. But when she went to her first broker and explained her situation, she was told that her income alone was not enough to service a new loan large enough to buy out her husband's share of the equity.
That broker was not wrong in a general sense. On paper, at first glance, the numbers looked tight. But the broker had not asked the right questions, and had not looked beyond the surface of Sarah's income. That is where the difference was made.
The numbers Sarah was facing
The family home was valued at $620,000. The existing mortgage balance was $385,000. Sarah and her husband had agreed through their lawyers that the property settlement would give him 45% of the equity, which came to $105,750. That meant Sarah needed a new loan of $490,750 to cover the existing mortgage and pay out his share.
On a single income of $78,000, most lenders would cap her borrowing capacity somewhere around $420,000 to $440,000 depending on the rate and her other commitments. The gap between what she could borrow and what she needed was roughly $50,000 to $70,000. For the first broker, that gap was the end of the conversation.
For Sarah, it felt like the end of everything.
"I remember sitting in the car after that first appointment and just crying. I kept thinking, where are we going to go? The kids have their school, their friends, their rooms. I could not imagine telling them we had to leave."
Sarah, Lendology client
What we found that the first broker missed
When Sarah came to Lendology, we sat down and went through her full financial picture. Not just her payslip and the mortgage balance, but everything. Her living expenses. Her tax returns. Her child support arrangement. Her Family Tax Benefit payments. The car loan she had two years left on. The school fees. Everything.
The detail that changed everything was the child support. Sarah's former husband was paying $24,000 per year in child support. It was documented through the Child Support Agency, consistent, and had been received on time every month since the separation began. This is not unusual. What is unusual is how differently lenders treat it.
Some lenders do not count child support as income at all. Some count 50% of it. And a smaller number of lenders count 100% of documented, consistent child support as assessable income for servicing purposes. The first broker had either used a lender that discounted it heavily or had not factored it in at all.
By selecting a lender that recognised 100% of Sarah's child support, her assessable income went from $78,000 to $102,000. That single adjustment moved the borrowing capacity from the low $400,000s to well above $495,000. The gap that had seemed impossible to bridge was closed by choosing the right lender and presenting the application correctly.
The approval and what it meant
We submitted the application with full supporting documentation. The child support assessment notice from the CSA. Six months of bank statements showing the payments landing consistently. Sarah's employment contract, her payslips, and her most recent tax return. A current valuation of the property. A copy of the draft Consent Orders from her lawyer.
The lender approved the loan at $495,000. The loan to value ratio sat at just under 80%, which meant Sarah avoided lenders mortgage insurance entirely. The interest rate was competitive. The repayments, while higher than what she had been paying on the old joint loan, were manageable within her budget once we factored in that she was no longer covering expenses for two adults.
Settlement was completed in six weeks. The title transferred into Sarah's sole name. Her former husband received his equity payout. And the joint mortgage that had tied them together financially was discharged and replaced with a loan that belonged to Sarah alone.
"The day settlement went through, I picked the kids up from school and we just went home. Our home. I did not have to explain anything or apologise. We walked through the front door the same way we always had, except this time it was mine."
Sarah, Lendology client
Why lender selection matters so much in separation
Sarah's story is not unusual. We see this pattern regularly. A client goes to a broker or a bank, gets told no, and assumes the answer is final. But the answer is often specific to that lender's policies, not to the client's actual financial capacity.
Different lenders have vastly different policies on how they treat income sources that are common in separation. Child support, Family Tax Benefit, spousal maintenance, rental income from a property that is being retained, and even Centrelink payments are all treated differently depending on the lender. A broker who understands these differences can often find a path that a generalist broker or a bank branch cannot.
This is especially important for single parents who may have moderate employment income but receive significant support through child support or government payments. The right lender can mean the difference between keeping the family home and being forced to sell.
What Sarah would say to someone in the same position
"If the first person you speak to says no, please do not stop there. I nearly did. I nearly put the house on the market because I thought there was no other way. If I had not found Lendology, my kids and I would be renting somewhere right now. Get a second opinion. It changed everything for us."
Sarah, Lendology client
Sarah is now 18 months past settlement. The kids are still at the same school. She has started building a small savings buffer. The mortgage is in her name and her repayments are up to date. She told us recently that the house feels different now. Not just because the situation has changed, but because she knows it is hers.
If you are in a similar position and wondering whether keeping the family home is possible on your income, the answer may surprise you. It starts with a proper assessment of your full financial picture, not just the payslip.
Wondering if you could keep your home?
A 30 minute conversation with Jason can give you a clear picture of what is possible in your situation. Use our solo borrowing calculator for a quick indication, or book a time to talk it through properly.
Book a confidential chatFrequently asked questions
Can I keep the family home on a single income after separation?
Yes, in many cases it is possible. Lenders assess your total assessable income, which can include employment income, child support, Family Tax Benefit, and other regular payments. A broker experienced in separation finance can identify which lenders count these income sources favourably and structure your application accordingly.
Does child support count as income for a home loan?
Some lenders count child support as assessable income when calculating your borrowing capacity, though the percentage they accept varies. Some count 100% of documented child support, while others count only 50% or exclude it entirely. The right lender selection makes a significant difference to whether your application is approved.
How do I buy out my ex partner's share of the home?
You refinance the existing mortgage into your sole name and increase the loan amount to include the equity payout owed to your former partner. The total new loan covers the existing mortgage balance plus the agreed equity share. Consent Orders or a Binding Financial Agreement are typically required before the lender will process the refinance.
Last reviewed: May 2026