Refinancing Home Loan After Divorce in Tasmania
Your bank doesn't care what your consent orders say. Even if the court awarded you the family home, the bank won't release your ex-spouse from the mortgage until a new loan is in place — in your name alone.
Why Refinancing Is Required
A joint mortgage means both borrowers are liable for the full debt. The bank's contract is with both of you, and it takes priority over a family court order. The court can order that one party keeps the property, but it cannot force the bank to remove the other borrower from the loan.
The only way to get your ex-spouse off the mortgage is to refinance: take out a new loan solely in your name that pays out the existing joint loan.
The Refinancing Sequence
Get a property valuation — Ask the lender whether it requires an independent valuation and what fee applies. The valuation helps determine your loan-to-value ratio (LVR). If the LVR is high on a single income, lenders mortgage insurance (LMI) may add to the cost.
Apply for the new loan — Apply with your current lender or shop around. You need to demonstrate that your sole income can service the full loan. If you're receiving child support or spousal maintenance, some lenders will count a portion of that income.
Get formal approval — The lender issues a formal loan offer in your sole name.
Request a payout figure — Contact the existing lender for the exact amount needed to discharge the joint loan, including any break fees if you're exiting a fixed-rate term early.
Settlement through PEXA — The Discharge of Mortgage and Transfer of Land lodge simultaneously through PEXA. Your conveyancer or solicitor handles this — since February 2026, the Land Titles Office no longer accepts paper-based lodgements.
What If You Can't Qualify on Your Own
If your sole income can't service the existing loan amount, you have limited options:
- Sell the property and split the proceeds according to your consent orders or BFA. The joint mortgage is discharged from the sale proceeds.
- Bring in a co-borrower only with lender approval — a parent or new partner may help with serviceability, but a co-borrower does not automatically release your ex-spouse or put the new loan in your sole name. Get advice about loan liability, title position, and tax implications.
- Negotiate a smaller split — if you can't keep the house, consider trading the property for other assets (super, savings, investments) and having the property sold.
The bank will not simply wait. If neither party is making repayments because the arrangement is unresolved, the bank can enforce the mortgage against the property regardless of what the family court ordered.
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Stamp Duty on the Transfer
The property transfer itself is exempt from stamp duty under Section 56 of the Duties Act 2001 (TAS) — but only if the transfer is executed under consent orders or a BFA. Your conveyancer lodges the exemption with the State Revenue Office through Tasmanian Revenue Online before the transfer registers with the Land Titles Office.
Hiring a Conveyancer
Since the LTO's 2026 switch to electronic-only lodgement, you need a registered conveyancer or solicitor who is a PEXA/TOLD subscriber. They handle the Verification of Identity, prepare the electronic Transfer of Land, coordinate with the bank on the mortgage discharge, and lodge the SRO exemption.
Conveyancing fees in Tasmania for a divorce-related transfer typically run $800–$1,500 plus $350–$500 in disbursements (searches, registration fees, VOI).
The Tasmania After-Divorce Checklist includes the complete mortgage refinancing and property transfer workflow with the timing dependencies mapped out.
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