Financial Difficulty
and Hardship Hub.
Have you experienced a change to your financial situation? Have your home loan repayments increased to a level you are no longer comfortable with?
It is a good idea to reach out as soon as you identify there may be a problem so we can act quickly and reduce the impact.
Whether your financial difficulty is short term or continuing, it is important to understand there are a number of steps we can assist you with.
You can contact your lender directly to discuss your options, such as postponing certain repayments, changing your loan term, or varying your credit contract. The lender will assess hardship applications on a case-to-case basis, provide access to short-term relief and assist you through your temporary hardship event (these are not long-term solutions).
Alternatively, you can reach out to us and we can walk you through the process including assisting you with your hardship application. We can also reevaluate your circumstances for longer-term solutions.
How can we help?
Understanding your financial circumstances and the cause of the financial difficulty is crucial for us to determine what assistance may be possible and appropriate for you.
We can evaluate your situation to determine the options available to you and point you toward resources that may be useful.
We have over 60 lenders on our panel that may be able assist you and provide you a suitable outcome for your situation.
As mortgage brokers we provide essential information and advice to you at a time when understanding appropriate options and making the right decision is critically important.
We are available to meet in person, chat over the phone or via a video call.
We're here to help.
What’s a payment deferral?
Every lender has their own rules and requirements on these payment deferrals. It’s important to know that at some point you will be required to pay the interest that accrued while the loan was deferred. For example, some lenders will add the amount you owe to the end of your loan and some will charge immediately after the payment deferral is off hold.
Also, after the deferral, your balance and your repayments could be higher to make up for the interest accrued deferred repayments.
What happens to the principal if repayments are frozen?
So, when you recommence repayments your lender will recalculate your repayments so you repay the loan in the original term. This ultimately means your repayments will rise. However, there are options available to refinance after the payment deferral period, which could help to reduce repayments and increase the term of your loan, giving you a bit more flexibility.
How do I get hardship assistance?
When should you consider refinancing?
There are a number of reasons you might consider refinancing. These may include:
Lower rates
Interest rates regularly change, as is the case in the current market, so if you have a variable rate or your fixed rate is due to expire, you may be able to negotiate a lower rate with your lender – or find one that will.
More bells, better whistles
Not all home loans are packaged equal. It can be worth looking at features and functionalities to see what could be useful for you. If you aren’t using features with your existing loan, switching to a more basic loan could potentially save you in fees.
Debt consolidation
If you have multiple debts, such as a personal loan, credit card or car loan, you may be able to roll them into your home loan. This consolidates your debt to one repayment and could save you in interest. We will consider the whole picture to determining if debt consolidation is right for you.
Free up money
Whether you need to free up money for a renovation, a new car or have another project in mind, if you have grown equity in your home, you may be able to refinance to access more money to fund it.
Refinance vs payment deferral?
Is now a good time to fix my rate?
There is no easy answer to this question, as it depends on your situation and your financial goals. Let’s take a look at the pros and cons of fixing your rate:
- Pros: Fixed rates prevent the risk of your repayments increasing due to a rise in interest rates and your repayments will stay the same for a set period.
- Cons: Fixed rates are usually higher than variable rates, but now as rates are continuing to decrease, there could be associated fees and costs for breaking your fixed rate if you chose to refinance.
Have lenders' turnaround times been impacted?
I have up to date turnarounds for all 62 lenders on the Loan Market panel so I can share those with you as we discuss what your options are for your current situation.
What are the options as a landlord?
Negotiate payment deferral options for your mortgage Discuss hardship options Refinance or reprice to get a more competitive rate Outline the costs of switching and not switching
Additional resources
Helping you manage your money
- Financial Assistance Hub: The Australian Banking Association provides a helpful financial guide.
- MoneySmart: An Australian Securities & Investments Commission (ASIC) initiative offering tips and tools to help make the most of your money.
Free community support and counselling services
- National Debt Helpline: Developed by financial counsellors, this site has simple step-by-step guides explaining how to fix common debt problems. If you need more help, you can call 1800 007 007 to speak to a free and independent financial counsellor.
- Salvation Army Doorways Program: The Salvation Army provides you with tools and information to assist you in taking action early to manage your finances.
- Family and Domestic Violence Support: 1800 RESPECT (1800 737 732) is a 24-hour hotline providing help for any Australian who has experienced, or is at risk of, family and domestic violence and/or sexual assault.
- Beyondblue: Information on depression and anxiety and where to get help.
- Way Forward: This not-for-profit organisation provides people in long-term financial difficulty with help and strategies to get out of debt. You can call Way Forward on 1300 045 502.
Government support services
- Human Services (Centrelink): Here you can find information about Federal Government initiatives and eligibility for support and social security payments.
- Find unclaimed money: A simple search tool by ASIC to find unclaimed money from banks, investments and life insurance policies.
Book your free consultation
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