You are not legally required to notify your lender about your separation. However, if the separation is going to affect your ability to make repayments - for example, if one income is removed from the household - it is strongly advisable to contact them early. Lenders have hardship provisions that can temporarily reduce or pause repayments. Reaching out before you miss a payment gives you significantly more options than waiting until arrears accumulate.
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Book a confidential chatWhen to tell your lender
Contact your lender if: repayments are becoming difficult on one income, you are about to refinance as part of a settlement, or you need to change the account contact details. You do not need to tell them if both parties are still making repayments as normal and the loan is not being restructured.
Will telling my lender trigger a loan review?
No. Informing your lender about a change in circumstances does not automatically trigger a loan review or recall.
Lenders have hardship obligations and are generally supportive when borrowers communicate early. It is far better to contact them proactively than to miss a payment without warning.
What hardship options can my lender offer?
Common options include reduced repayments, interest-only periods, payment deferrals, and loan term extensions.
These arrangements provide breathing room while you work through the settlement process. They are temporary measures, not permanent solutions. Your broker can advise on the best long-term path once your settlement terms are clear.
We are not just explaining the process. We arrange the actual finance: refinancing into your sole name, funding a partner buyout, or setting up a new loan independently after settlement. We work with a panel of over 60 lenders to find the one that fits your situation.
Once the legal side of your property settlement is resolved, the next step is usually a financial one. That is where we come in.
Jason and Steve also help clients with first home loans, refinancing, and investment lending at lendology.com.au.
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