The Unexpected Housing Hit After Divorce
Why women face steeper challenges, and how an experienced mortgage broker helps them begin again with confidence.
For many women, separation doesn’t just mark the end of a relationship, it marks the beginning of an unexpectedly difficult housing journey.
According to ABC News, divorced women in Australia face steep barriers when trying to re-enter the home ownership market. The loss of dual income, increased caregiving responsibilities and rising property prices all combine to make the process emotionally and financially overwhelming.
Home Ownership after Separation.
Split household = split income.
New clarity required.
Beginning again with confidence.
Why the Odds Are Stacked
When a couple splits, joint income and financial support disappear and this dramatically affects mortgage approval.
Women often bear the brunt of lower incomes post-divorce, especially when they are primary caregivers. Even if a woman receives a larger share of assets, lenders still focus heavily on income when assessing serviceability.
With housing prices continuing to rise, saving a deposit and proving repayment capacity becomes even more challenging.
“The reality is a lot of women will go into the rental market and may never purchase a home again.”
– Karen Eley, Financial Adviser
This reflects the experience of many separated women trying to rebuild stability.
Real Stories = Real Stress
Consider the case of Kes Ball, who went from owning a comfortable three bedroom family home, complete with pool, to renting for more than seven years after her separation.
As her lease nears expiry each year, uncertainty returns:
“I don’t know where I am going to be in eight weeks’ time.”
Kes wants long term stability for herself and her daughter, but estimates that saving a deposit may not be possible until her 50s or 60s.
Her story highlights how separation can push women out of home ownership for many years, sometimes permanently.
What Experts Recommend
Industry professionals consistently advise women to:
- Know your financial standing early
Understand your credit score, savings history and banking profile as an individual.
Establishing your own financial footprint early is essential.
- Seek professional advisers
A mortgage broker or financial adviser working alongside your divorce lawyer can help structure a settlement that supports your future borrowing capacity.
- Explore government schemes
Programs such as the 2% deposit scheme for eligible single parents can help, although eligibility criteria are tight.
The Bigger Picture
Housing inequality after divorce is not an individual issue, it’s systemic.
Women aged 25+ with children earn significantly less over their lifetime than men in similar circumstances, limiting their long term financial capacity.
With booming house prices, separating becomes financially risky, and staying in the family home is not always emotionally or logistically possible.
How an Experienced Mortgage Broker Helps Women Rebuild After Divorce
An experienced mortgage broker understands that life after separation isn’t just about borrowing power, it’s about rebuilding confidence, stability and financial independence.
Here’s how a skilled broker typically supports women navigating this stage:
- They listen first
A good broker takes the time to understand your new financial landscape, goals and responsibilities, not just your numbers.
- They assess your borrowing power as a single applicant
Many women underestimate their capacity to borrow solo.
A broker helps you understand exactly how lenders will view your application post-separation.
- They help rebuild savings & credit confidence
This includes guidance on:
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- Opening your own accounts
- Building a consistent savings history
- Repairing and improving your credit profile
These steps strengthen your position and increase lender confidence.
- They map realistic pathways back to home ownership
This may include:
-
- Buying sooner in a more affordable area
- Leveraging government incentives
- Exploring shared equity or deposit assist options
- Creating a staged plan to re-enter the market over time
- They collaborate with your legal team
A mortgage broker can work alongside family law advisers so your settlement and borrowing strategy align, protecting your long term stability.
What This Means If You’re Going Through or Considering Divorce
- Plan early: Understand your future income, assets and borrowing power.
- Include housing in your settlement strategy: It’s not just about splitting assets, it’s about shaping your next chapter.
- Recognise that renting may last longer than expected: And plan accordingly.
- Look for policy changes and support: Many single and divorced women fall outside current eligibility rules.
For many women navigating separation or divorce, the journey back to home ownership is fraught with additional hurdles.
At Olive Tree Finance, we understand that this isn’t just about numbers, it’s about rebuilding security, stability and independence. Here’s how we support women in this space:
- We listen first. We take the time to understand your new income picture, your goals and your short and long term asset journey.
- We help you assess your borrowing power as a single applicant many women aren’t aware how much they can borrow and how banks will assess serviceability post-separation.
- We work with you to build a savings and credit recovery strategy that gives banks confidence (and you peace of mind) for example establishing your own bank account, building consistent savings, and improving your credit profile.
- We map out realistic home ownership pathways, whether that’s buying sooner in a more affordable area, leveraging government schemes, or exploring shared equity and deposit assist options.
- We partner with legal and family law advisors to factor in your settlement and asset split into the property purchase picture, so your plan aligns with your full financial ecosystem.
If you’re a woman who’s been through separation and you’re ready to explore your home ownership options, we’re here. You don’t have to go it alone.
About the Author
Daniela Greening is the Director and Senior Mortgage Broker at Olive Tree Finance, specialising in guiding women through major life transitions such as separation and divorce. She helps clients rebuild confidence and secure the right lending solutions for their future, ensuring they take their next step toward home ownership with clarity and support.
Get in contact with Daniella here