What happens to the mortgage when you separate in Australia?

Both parties remain jointly liable for the home loan until it is formally refinanced into one name, sold, or discharged. Joint liability continues regardless of who is living in the property or paying the mortgage. This can affect both parties' borrowing capacity for any new property until the matter is resolved.

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

Yes, it is possible to refinance a jointly held home loan into a single name following separation. The person keeping the home needs to demonstrate they can service the loan independently. This typically involves a new credit assessment, updated income verification, and a formal property valuation. A mortgage broker can assess your individual position and identify suitable lenders.

How does a property settlement work in Australia?

Property settlements in Australia are formalised through either Consent Orders (filed with the Family Court) or a Binding Financial Agreement. Both options outline how assets and liabilities are divided. A family law solicitor should guide this process. Your mortgage broker works alongside your legal team to ensure the finance side is structured correctly once the legal agreement is reached.

How does child support affect borrowing capacity after separation?

Child support payments you make are treated as a financial commitment by lenders and reduce your borrowing capacity. Child support received may be counted as income by some lenders, depending on the lender's policy and how it is documented. A broker can identify which lenders treat child support most favourably for your situation.

Do I need consent orders before I can refinance?

Not always. Some lenders will proceed with a refinance based on a separation agreement or Binding Financial Agreement, while others require Consent Orders to be in place. The exact requirement depends on the lender and the specifics of your situation. Your broker can identify which lenders are most practical for your timeline.

What is a partner buyout and how does it work?

A partner buyout is when one party refinances the home loan to pay out the other party's equity share and take sole ownership of the property. The new loan amount covers the existing loan balance plus the partner's equity entitlement, plus any associated legal or transfer costs. The new loan is assessed on the single applicant's income and financial position.

Can I Get a Home Loan as a Single Parent in Adelaide?

By Jason Given · April 2026 · 5 min read

Single parents face unique challenges when applying for a home loan - a single income, child-related expenses, and often a recent separation that has changed their financial position. But there are specific programs designed to help, and the right lender selection makes an enormous difference.

Family Home Guarantee - 2% deposit, no LMI

The Family Home Guarantee allows eligible single parents or legal guardians with at least one dependent child to purchase with just a 2% deposit. The government guarantees 18% of the loan, eliminating Lenders Mortgage Insurance entirely. There are no income caps (from October 2025) and the scheme is available to both first home buyers and previous owners - meaning you can use it even if you owned property before your separation.

Child support as income

Some lenders count child support received as assessable income, which increases your borrowing capacity. Others ignore it entirely. The difference between lenders can add $40,000–$80,000 to what you can borrow. This is where a broker who understands separation lending adds genuine value - we know exactly which lenders treat child support most favourably.

What you can afford in Adelaide

On a single income of $75,000 with the Family Home Guarantee (2% deposit), a single parent could realistically purchase a property in the $400,000–$500,000 range - covering suburbs like Morphett Vale, Noarlunga, Hallett Cove, and parts of the outer south. With child support counted as income, that range can extend to $550,000+.

Source: Housing Australia - Family Home Guarantee eligibility and conditions.

Frequently asked questions

Can I use the Family Home Guarantee if I've owned before?

Yes - unlike the First Home Guarantee, the Family Home Guarantee is available to previous property owners. You just need to be a single parent or legal guardian with at least one dependent child, and not currently own property.

What deposit do I need as a single parent?

As little as 2% through the Family Home Guarantee. On a $450,000 property, that is $9,000. Without the guarantee, most lenders require 5–20%. Lendology checks your eligibility and applies on your behalf.

Home loans for single parents in Adelaide.