diff --git a/t/test-lib.sh b/t/test-lib.sh
index 7a56f11101..abc47f3abc 100644
--- a/t/test-lib.sh
+++ b/t/test-lib.sh
@@ -993,14 +993,14 @@ rm -fr "$test" || {
 	exit 1
 }
 
+HOME="$TRASH_DIRECTORY"
+export HOME
+
 test_create_repo "$test"
 # Use -P to resolve symlinks in our working directory so that the cwd
 # in subprocesses like git equals our $PWD (for pathname comparisons).
 cd -P "$test" || exit 1
 
-HOME=$(pwd)
-export HOME
-
 this_test=${0##*/}
 this_test=${this_test%%-*}
 for skp in $GIT_SKIP_TESTS