Last updated: July 2026 · Reviewed by John Pierre Saliba, Director and Mortgage Broker, MFAA Accredited
Getting a Home Loan After Divorce in Australia
Divorce changes your financial profile significantly, from a two-income household to a single income, with potential new liabilities (child support, maintenance) and new assets (settlement proceeds). Lenders assess your post-divorce financial position as a complete picture, and understanding how they see it gives you the best chance of approval.
The clients I work with after divorce are often rebuilding, rebuilding savings, rebuilding income confidence, rebuilding their sense of what they can achieve. I've helped many people get into homes they didn't think they could afford post-divorce. The key is understanding what lenders actually assess, and putting your application together in a way that shows your real financial strength, not just the parts that feel obvious.
What Lenders Assess After Divorce
Income
- Your employment income (PAYG, self-employed, contract)
- Child support received, most lenders include 80–100% of documented child support
- Spousal maintenance received, accepted as income by many lenders
- Family Tax Benefit A and B, counted as income by most lenders
- Investment income (rent, dividends) if applicable
Liabilities
- Child support payable, deducted from income as a liability
- Spousal maintenance payable, treated as ongoing commitment
- Any joint debt you remain on (credit cards, personal loans)
- Any joint mortgage not yet resolved
Using Settlement Proceeds as a Deposit
Property settlement proceeds, your share of the family home sale or equity buyout, are treated as genuine savings by lenders, typically after they've been in your account for 3 months. This is one of the most important assets in your post-divorce loan application. A cash deposit from settlement proceeds gives you a clean, documentable deposit source.
Worked Example: Buying After Divorce
- Employment income: $85,000 p.a.
- Child support received: $1,200/month ($14,400/year)
- Family Tax Benefit: $4,800/year
- Total assessed income: ~$103,000 (at 100% child support)
- Settlement deposit: $180,000 (in account 4+ months)
- Purchase price: $750,000 | LVR: 76%, no LMI
- Monthly repayment (6.49%): ~$3,300
- Outcome: Approved, strong income, clean deposit, good LVR
Rebuilding Your Financial Profile After Divorce
- Separate all joint accounts and credit cards immediately, your credit file should reflect your individual position
- Build 3–6 months of clean bank statements, consistent income, consistent savings, no dishonours
- Check your credit file, ensure no joint debts are showing incorrectly or damaging your score
- Avoid new credit applications in the 3–6 months before applying for a home loan
- Document all income streams, particularly child support and FTB, which may not be obvious to a lender without clear documentation
How Long After Divorce Can You Apply?
There's no mandatory waiting period. You can apply for a home loan at any point after separation, even before the divorce is finalised (divorce is a legal process that takes 12 months after separation in Australia). What matters is that your financial position is stable and documentable. In practice, most clients apply 6–18 months after separation, once the property settlement is resolved and their individual financial position is clear.
