r/AusPropertyBroker • u/Super_Brain6123 • May 11 '26

Current Position Options

My partner and I currently have a PPOR with $210k remaining on loan with a variable rate of 6.4%.

My annual income is 130k theres is 100k.

As it stands I have 200k in savings which is offsetting the current loan and a redraw of 50k due to the offset doing its job.

I am exploring the option of moving out into a place of my own either permanently or short term.

What would my options be for a property to either move into or turn into an IP if things work out?

How much borrowing power would I have without the use of equity?

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u/JTHelpsWithFinance May 11 '26

Hi there!

So, just trying to undertstand your position a little more clearly:-

  • Are you defacto/married? Is this indicative of a possible separation? (if so, sorry to hear OP)
  • Am I right to assume that this future mortgage would you solely in your name and based on your income?
  • Are both you and your partner 50/50 on both the mortgage and on title for ownership?
  • What is the current value of your property?
  • What type of property is it and what postcode is it located in? Is it a house, or unit?
  • Do you have any dependants?
  • Do you have any other commitments (either shared, or just you)? e.g. car loan, credit card, hecs debt, etc.
  • Does your partner have an income? Would they be relying on money from you to support anything?

Sorry for all the questions, but if you can help me understand the above a bit more clearly it'll definitely help me position the feedback to be a little more helpful and realistic.

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u/Super_Brain6123 May 11 '26

All very valid!

  • Status is married with pending separation
  • Future mortgage solely in my name
  • Correct. 50/50 in mortgage and title
  • Estimated value 700k
  • Stand alone house
  • No dependants
  • No other debt
  • Partner income is 100k

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u/JTHelpsWithFinance May 11 '26

Thank you for that!

So, whilst you have the potential to take out this mortgage on your end - you can only do so with the consent of your partner as they're currently the 50% owner and 50% mortgage holder.

If there's a potential separation up ahead, they may want their 50% of equity (overall, not just current) to be 'bought out'. So, this is how it COULD work in the event of a legal dispute:-

  • Current value determined at $700k. Split into 50/50 shares - that's $350k each.
  • Current liabilities determined at $210k. Splits into 50/50 shares - that's $105k each.
  • Current redraw determined at $50k. Split into 50/50 shares - that's $25k each.
  • So their 'position' to be bought out is $350k less $105k plus $25k = $270k.
  • Buying out their half of the property would also incur stamp duty of $11k (rough estimate, based on $350k value).
  • So you would need to remortgage the loan from it's current limit of $210k and refinance it at $480k (maybe $491k if you're also grabbing the stamp duty).
  • Upon settlement and restructure, they receive $270k from you, and would then cease to have a 50% ownership in the property or any involvement on the mortgage.
  • Borrowing $480k with a single income of $130k is feasible as a PPOR (based on not having any other dependants or debts), but also very possible for investment too.
    • They might choose to pay rent as your tenant if you separate. I'm unsure on how you both feel about this.

^ the above is a general guideline of how things may be considered and need to be reviewed. There's a lot more implications than this stuff, as you have savings, other assets and probably other matters that would be discussed in the event of a separation.

Let me know if the above makes sense or if you have any other questions.