Case study: How a mum in her 30s bought her first solo home after separation with help from her family

By Rielle Berglund

A mum in her 30s in inner-city Sydney separated from her husband and wanted to buy a home for herself and her young child. Her income of $140,000 supported a strong borrowing capacity, but she needed a larger deposit than she could produce alone.

Her family gifted her $320,000 (about 35% deposit on a $920,000 home), which allowed her to purchase with a $600,000 loan. The application ran in under six weeks, with two mechanical hurdles to navigate: providing formal evidence that the family funds were a genuine gift, and waiting for her formal separation agreement to be signed before settlement. This case study walks through both.

This case study is a composite based on several clients I've worked with in similar situations. Details have been adjusted to protect privacy while preserving the truth of the situation and outcome.

The situation

She was in her 30s, worked in a senior professional PAYG role in Sydney, and had a young child. Her income sat around $140,000. She and her husband had been separated for a few months and were in the process of formalising the settlement. She wanted to buy her own home rather than continue renting, both for the stability and because she was ready to move forward on her own terms.

The inner-city market she wanted to buy in was expensive. Suitable one or two-bedroom apartments for herself and her child sat in the $850,000 to $950,000 range. Her borrowing capacity on her income comfortably supported a loan of that size, but the deposit required (typically 20% to avoid Lenders Mortgage Insurance) was around $170,000 to $190,000. She had savings of her own, but not that much in liquid form after separation costs and setting up a rental household.

Her parents had been in a position to help. They offered a $320,000 gift toward her deposit. This was significantly more than she strictly needed, but her family wanted her to have a strong starting position rather than a stretched one. She accepted the offer.

The challenge

There were two mechanical hurdles rather than a substantive challenge. Her income supported the loan, her credit was clean, and the property she wanted was within her serviceability. What needed to be navigated was documentation and timing.

The gift needed formal evidence. Lenders are cautious about "gifted" funds because a gift with repayment expectations is functionally a loan, and loans need to be counted as debt in serviceability calculations. Most lenders require a statutory declaration from the person providing the gift, confirming that the funds are a genuine gift with no expectation of repayment.

Some lenders also want the gifted funds to sit in the borrower's account for a period of time (usually one to three months) before they'll count them as the borrower's own genuine savings. This can create timing issues if the gift is only just arriving when the property is being purchased.

Settlement timing needed to align with her legal separation. For a purchase happening during the property settlement period, some lenders want to see the formal separation agreement (Consent Orders or Binding Financial Agreement) in place before proceeding. This is because until settlement is formalised, there's technically a joint asset pool being divided, and lenders want clarity on what belongs to whom.

Neither hurdle was insurmountable. But both needed to be planned around, not discovered mid-application.

The approach

The workflow ran in parallel rather than sequentially, which saved significant time.

Initial assessment. We ran her serviceability against multiple lenders to confirm she qualified for the property price range she wanted. This was straightforward given her income and clean credit.
Coordinated with the family lawyer. Her lawyer confirmed the timeline for the Consent Orders being signed. Rather than waiting for the orders to be complete before starting the mortgage process, we started the application with the timing aligned so that settlement of the home purchase would happen shortly after the Consent Orders were formalised.
Prepared the gift documentation. Her parents signed a statutory declaration confirming the $320,000 was a genuine gift with no expectation of repayment. The declaration was witnessed appropriately (by a Justice of the Peace) and provided to the lender.
Managed the funds transfer timing. Because the lender required the gifted funds to be visible in her account, we timed the transfer of the funds so they were in her name in time for the loan approval. Not so early that they created questions about their origin, not so late that they held up the process.
Lender choice mattered less than usual. Because her application was fundamentally strong (high income, clean credit, large deposit), most lenders would have approved. We chose a lender based on rate and product suitability rather than needing a specialist for a complex situation.
Settlement was booked to happen after Consent Orders were signed. This meant her separation was legally complete before she took on new mortgage debt, which was cleaner for everyone.

The outcome

The application was approved within about two weeks of formal submission. Settlement happened five weeks after our first conversation, and about a week after her Consent Orders were signed.

The numbers at settlement:

Property purchase price: approximately $920,000
Parental gift (deposit contribution): approximately $320,000
Her own savings contribution: modest additional amount to cover buying costs
Her loan: approximately $600,000
Deposit as a percentage of purchase: approximately 35%
No Lenders Mortgage Insurance required (deposit above 20%)
Monthly repayment: around $3,600 (comfortably within her serviceability on $140,000 income)

She moved into her own home with her child a few weeks later. She was on the deed as the sole owner. Her separation was formalised. Everything was clean.

What made the difference

The straightforward reality of this case was that she had the income to borrow well, the family support to fund a strong deposit, and no serviceability issues. The unlock was the mechanical work of getting the gift documented correctly and aligning the settlement timing with her formal separation.

None of that is glamorous, but it's the difference between a smooth six-week purchase and a stressed twelve-week purchase where things surface at the last minute. The value of a broker in a case like this isn't the lender choice (any lender would have approved). It's the process and timing.

The other thing worth naming is that receiving a substantial gift from family is a specific privilege, and it's not the situation most single mums after separation find themselves in. This case study is honest about that. Most of my clients don't have $320,000 available from family. But for the women who do, understanding how the mechanics work makes the difference between a straightforward experience and an unnecessarily stressed one.

Could this work for you?

If you're separating and a family member is in a position to help with a deposit, either as a gift or as a family guarantor, understanding the mechanics upfront saves significant time and stress.

Key things to know:

Gifted funds usually need to be documented as a genuine gift, typically through a statutory declaration from the family member gifting the funds
Some lenders require gifted funds to sit in the borrower's account for a period before being counted as genuine savings
Timing the mortgage application around your legal settlement makes the whole process cleaner
If your family can't provide a gift but is willing to be a guarantor (using their own home as security for part of your loan), that's a separate option worth exploring

A mortgage broker who works with separating women can walk you through what applies to your specific situation.

Frequently asked questions

Do I need to prove that a family gift is genuinely a gift, not a loan?

Yes, in almost all cases. Lenders require formal evidence, usually a statutory declaration from the person providing the gift, confirming there's no expectation of repayment. This is because a loan (even from family) needs to be counted as a debt in serviceability calculations, whereas a genuine gift is treated as your equity.

How long do the gifted funds need to sit in my account before I can use them?

This varies by lender. Some require the funds to have been in your account for one to three months to demonstrate they're genuinely available and not just being cycled through. Others accept a fresh gift with proper documentation. If the gift is close to your application date, choose a lender whose policy accommodates that.

Can I apply for a home loan while my separation is still being finalised?

Yes, but timing matters. Some lenders require the formal separation agreement (Consent Orders or Binding Financial Agreement) to be in place before proceeding. Others will lend during the settlement period with appropriate legal advice. Working with a broker who understands separation-linked lending helps ensure the timing is planned rather than reactive.

What if my family wants to help but can't afford a gift?

Family guarantor structures can allow a family member to use equity in their own home as security for part of your loan, without them needing to actually give you money. This has its own considerations (both parties are exposed if things go wrong) but can be a genuine solution for some families. A broker and solicitor can walk you through whether it suits your specific situation.

This article is general information only and does not constitute financial, legal or tax advice. Every situation is different. Please speak to a licensed financial adviser, solicitor and your accountant about your specific circumstances.

Rielle Berglund is a mortgage broker specialising in single parents, women, and self-employed Australians navigating home loans on a single income. She is the founder of Matilda Tree Finance and the creator of Runa, a free financial literacy app for Australian women.

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Sources and references

This case study draws on Rielle Berglund's professional experience as a mortgage broker. The following source is relevant to topics covered:

Federal Circuit and Family Court of Australia (Consent Orders, BFAs, property settlement): fcfcoa.gov.au