Case study: How a single mum kept the family home using Help to Buy after separation
A single mum in her 30s in regional NSW wanted to keep the family home for her two teenagers after separation. The buyout figures didn't service on a standard refinance, and her income structure (PAYG, teenagers too old for FTB or child support to be counted) meant most lenders wouldn't approve.
The Help to Buy Scheme's shared equity structure (with a 25% government share) reduced her loan requirement enough to make the buyout achievable. She used her existing equity as deposit, took on a smaller loan than she'd otherwise need, and settled within eight weeks.
This case study walks through the numbers.
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, lived in regional NSW, and had two teenagers still living at home. She and her husband had bought their house about ten years earlier. When the marriage ended, they agreed she would keep the property and buy out his share.
Her income was PAYG, around $70,000 a year, in a stable job she had held for years. Her savings were modest (around $10,000 outside of any settlement funds) and her share of any settlement was largely tied up in the equity of the home itself.
The property was worth around $580,000. There was still $250,000 owing on the existing mortgage. Her ex-partner's share to buy out was around $85,000, meaning she needed to refinance to roughly $335,000 to keep the home in her name alone.
Her teenagers were the anchor of the whole situation. Both were in high school, established in their friendship groups, and in a house they had grown up in. Moving them was not something she was willing to do unless there was no other option.
The challenge
Two things made this case difficult.
The first was serviceability. On her $70,000 income alone, a $335,000 loan sat right at the edge of what mainstream lenders would approve. With two teenage dependants counted as living expenses and no partner income to offset, most bank calculators returned a borrowing capacity that was either too low or right on the line.
The second was that her teenagers were too old for the income that would normally help. She still received child support informally, but her older child was over 18 and Family Tax Benefit for her younger child was minimal. Neither could be counted for lending purposes in any meaningful way.
She had spoken to her own bank and been given a hard no. She had spoken to one other broker who suggested she would need to sell and rent for a few years while she rebuilt savings. Neither option felt right, and neither reflected what her situation actually needed.
The approach
The Help to Buy Scheme, which opened to applications in December 2025, changed the picture.
The scheme allows the federal government to take an equity share in the property (up to 30% for existing homes, up to 40% for new builds), which reduces the amount the borrower needs to service. For a single mum whose serviceability was the bottleneck, this was exactly the structural solution needed.
The steps we worked through:
Confirmed eligibility. Help to Buy is available to buyers who don't currently own residential property. Because she was buying the property from her ex-partner as part of a formalised property settlement, she qualified under the scheme's provisions for single parents purchasing a home post-separation.
Assessed the Help to Buy panel. The scheme is only offered through specific Participating Lenders. This is the reality that catches most single mums off guard: the panel is small, and not every mainstream bank participates. Choosing the right lender within that panel matters.
Structured the buyout. Using her existing equity of around $110,000 as her contribution, plus the 25% government equity share (approximately $145,000 based on the property value), her required loan came down to approximately $180,000. This was well within serviceability on her $70,000 income.
Coordinated with the family lawyer. Her Consent Orders needed to be finalised before the refinance could progress. The lawyer, the lender, and I worked together to align the timing.
Prepared the documentation package. Her last two years of PAYG payslips and group certificates, her current employment letter, three months of bank statements, credit file, and her formalised Consent Orders were all lined up before the application went in.
The outcome
The application was approved within four weeks. Settlement happened about eight weeks after our first conversation.
The numbers at settlement:
Property value: approximately $580,000
Government equity share (25%): approximately $145,000
Her deposit contribution (from existing equity): approximately $110,000
Her loan: approximately $180,000
Monthly repayment: around $1,150 (well within serviceability on her income)
Her ex-partner received his agreed share from the refinance proceeds. She kept the home. The teenagers stayed in their schools and their bedrooms.
The ongoing consideration is the shared equity. When she eventually sells (or when she chooses to buy the government's share out), 25% of the property's value (including any capital growth) goes to the government. She understands this trade-off and is comfortable with it because the alternative was losing the house.
What made the difference
The single insight that unlocked this case was recognising that serviceability, not income or credit, was the actual constraint. She wasn't a bad borrower. Her income was solid, her credit was clean, and her employment was stable. She just needed a smaller loan than a standard refinance would have required.
The Help to Buy Scheme is essentially a serviceability solution structured as a purchase mechanism. By reducing the amount she needed to borrow, it made a buyout that a mainstream refinance couldn't service into a buyout that a smaller loan could.
The other insight is that the Help to Buy Participating Lender panel is small. If a client is going to use this scheme, working with a broker who knows which lenders participate and which are best suited to specific circumstances saves a significant amount of time. Going direct to the wrong lender (or to a lender that doesn't participate at all) usually ends in a decline that could have been avoided.
Could this work for you?
If you're a single parent trying to keep the family home after separation and the buyout figures aren't working on a standard refinance, Help to Buy is worth investigating. It doesn't suit every situation. The shared equity trade-off matters, the Participating Lender panel is narrower than the standard home loan market, and eligibility criteria apply.
But for single mums whose only barrier is serviceability on the full buyout amount, it can be the difference between keeping the family home and having to sell.
Frequently asked questions
Can Help to Buy really be used for a buyout, not just a new home purchase?
Yes, in specific circumstances. Help to Buy is designed for buyers who don't currently own residential property, and single parents purchasing a home as part of a formalised property settlement can qualify. The specific mechanics depend on how the settlement is structured. A mortgage broker familiar with the scheme can walk you through whether your situation qualifies.
How much of the property will the government end up owning?
Up to 30% for existing homes and up to 40% for new builds. The exact percentage is set at purchase. When you eventually sell (or buy the government's share out), that percentage of the property's current value returns to the government, including any capital growth. It's not a loan, it's an equity share.
What if my income is too low even for the Help to Buy amount?
Help to Buy reduces the loan you need, but you still need to service that reduced loan. If serviceability is still an issue even at the reduced loan size, other options may need to be explored (family guarantor, extended loan term, longer settlement negotiation). A broker can model the specific numbers for your situation.
Can I use this scheme if I have other properties in my name?
Generally no. Help to Buy requires that you don't currently own residential property in Australia. There are specific provisions for people re-entering the market after divorce or family violence. If you're unsure whether you qualify, the eligibility tool on firsthomebuyers.gov.au is the definitive first check.
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:
Australian Government Help to Buy Scheme: firsthomebuyers.gov.au/help-to-buy