If you co-own your house with your partner or are joint borrowers on a mortgage and you break up, there are some things to consider. This factsheet answers some common questions.
Who has to pay the mortgage if we break up?
If you took out a joint loan with your partner then you are both responsible for the whole loan amount. Even if you have moved out, you will still be responsible for your part of the mortgage repayment. Make sure you talk to your ex partner to agree on a payment arrangement between you until a property settlement is negotiated.
What if my partner refuses to pay their part of the mortgage repayment?
If you took out a joint loan with your partner then you are both responsible for the whole loan amount. Even if you have moved out, you will still be responsible for your part of the mortgage repayment. Make sure you talk to your ex partner to agree on a payment arrangement between you until a property settlement is negotiated.
I can’t afford to pay my part of the mortgage – what should I do?
If you can’t afford your part of the mortgage because you don’t work or have a small income, the court may order the higher income earner to pay the full mortgage or a larger part of the mortgage pending a property settlement. You can also ask the lender for a financial hardship arrangement or variation.
What if we are both behind on payments?
It is never too late or too early to get advice. Visit the National Debt Helpline website or call 1800 007 007.
Negotiate a financial hardship arrangement with your lender. You have a right to reduce or postpone your payments if you are in short-term hardship because of something outside your control, such as job loss or separation. You may be able to access reduced payments until property settlement occurs.
If you and your lender cannot agree on a repayment arrangement, lodge a complaint with the Australian Financial Complaints Authority (AFCA) immediately. AFCA is the best way for you to resolve your financial hardship complaint with your lender.
The lender cannot start or continue legal action or take possession of your home while your matter is being considered by AFCA.
For more information visit the Australian Financial Complaints Authority website or call 1800 931 678.
I have received an arrears letter or default notice from my lender
You should get legal advice immediately if you have received:
- an arrears letter or formal default notice from your lender
- threats of legal action
- a statement of claim from the court, or
- a notice to vacate your home from the Sheriff.
Your right to make a financial hardship arrangement with your lender depends on where the lender is up to in the process.
Where can I find more information?
The Mortgage stress handbook is a free publication is a practical guide for people having trouble with their mortgage. It includes information about what you can do to stop the lender taking possession of your home, how to negotiate a repayment arrangement, accessing your superannuation, and getting a stay if the lender has a court order to evict you from your home.
Order or view a copy via the Publications and resources page.
Where can I find help?
AFCA is a free and independent complaint resolution scheme for people who are unable to resolve complaints with financial services organisations.
For more information visit the Australian Financial Complaints Authority website or call 1800 931 678.
FRLC is a free independent community legal centre providing legal advice and financial counselling for people in financial stress.
For more information visit the Financial Rights Legal Centre website or call 1800 844 949.
LawAccess NSW is a free information service run by Legal Aid NSW. Anyone who has a legal problem in NSW can contact LawAccess NSW for legal help.
Speak with LawAccess NSW via web chat or call 1300 888 529 between 9am and 5pm, Monday to Friday (excluding public holidays).
The Domestic Violence Unit (DVU) is a specialist state-wide team of lawyers, domestic violence case workers, mental health workers and financial counsellors who work together to help clients who have experienced domestic and family violence with their legal and other needs.
For more information call 1800 979 529 or visit our Domestic Violence Unit page.
To contact a financial counsellor or get help with debt problem visit the National Debt Helpline website for a range of step-by step guides, or call 1800 007 007 to get your finances back on track.
Last updated: March 2024