Borrowing Power After Divorce Australia 2026 — Buying a Home as a Single Buyer After Separation

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Divorce reduces borrowing power by moving from dual to single income assessment and adding joint liabilities. Wait for property settlement before applying. The Family Home Guarantee assists single parents with prior ownership.

Frequently Asked Questions

Can I be approved for a loan while going through a divorce?

Yes, but it is complex. Lenders want to see a Binding Financial Agreement or Court Orders confirming the asset split. If you are still a co-borrower on the family home, that counts as your liability in the assessment.

Do I qualify for the first home buyer grant if I owned a home with my ex?

No. Previous ownership of residential property in Australia disqualifies you from most FHB grants and concessions. The exception is the Family Home Guarantee — explicitly available to previous homeowners who are now single parents.

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