Divorce Mortgage Loan

Buying out your ex-partner's share requires qualifying for a new loan on your own, which is effectively a refinance of the existing joint mortgage into a single name. Yard will assess your borrowing capacity based on your income, outgoings, monthly living expenses and existing commitments such as credit card limits, car loans, personal loans and HECS or HELP debt. Your ex-partner will need to sign a transfer form confirming the arrangement.

Cashing out your share is typically done in one of two ways. Your ex-partner may buy you out by refinancing the existing loan into their name only and paying you your share. Alternatively, the property is sold and the proceeds are divided between both parties. The funds received are then used as a deposit toward your new purchase. The loan required for that purchase is assessed based on your individual income, liabilities and credit profile. Independent legal advice is recommended before deciding which option suits your circumstances.

Yard can assist with financing the new property in your own name. The right option depends on the timing between the sale and the purchase. If sale proceeds will be available before you need to settle on the new property, a Yard Home Loan provides long-term finance using those funds as your deposit. If the purchase needs to happen before the sale is complete, a Yard Bridging Loan covers the period between the two transactions so you are not held up waiting for sale proceeds.

Yes. This is typically done through refinancing, where the existing joint mortgage is replaced with a new loan in one borrower’s name. Yard assesses the remaining borrower’s eligibility based on individual income, liabilities and overall serviceability. A property valuation and updated documentation are usually required as part of the process. Yard’s Loan Consultants can guide you through the refinance and settlement steps to ensure the loan is structured appropriately following separation.

This depends on individual financial capacity, property value, and future goals. In many cases, borrowers choose between selling, refinancing, or restructuring their loan after settlement. Independent financial or legal advice is recommended before making a decision.

If the outstanding mortgage exceeds the current property value, refinancing options may be limited until equity improves or a cash contribution is made to reduce the loan to value ratio (LVR). High LVR home loan options could also be available with Lenders Mortgage Insurance (LMI) through a low deposit home loan. Each application is assessed individually based on the current property valuation, your credit history and overall financial position. It is recommended speaking to a Yard Loan Consultant to understand your options.