8/10/2026
Financial difficulty can happen suddenly or build over time. A loss of income, illness, relationship breakdown, unexpected expense, higher living costs or increased loan repayments can all place pressure on a household budget. It is not a personal failure, and you do not need to wait until you have missed a repayment before asking for help.
If you are worried that an upcoming home loan repayment may be difficult to meet, acting early will generally give you and your lender more time to consider the available options.
Financial difficulty does not always begin with a missed repayment. Signs that it may be time to seek help can include:
You do not need to tick every box. If your home loan repayments are becoming difficult, or you expect they soon will be, that is enough reason to start a conversation.
Your lender has a financial hardship team that can discuss your circumstances and assess a request for assistance. Tell the lender that you are experiencing financial difficulty and want to request hardship assistance.
Be ready to provide:
The lender may ask for supporting information so it can assess the request. For consumer home loans, the lender must generally respond in writing within 21 days if it does not request further information, or within 21 days after receiving the requested information. Different timing applies if the requested information is not provided.
The arrangement offered will depend on your circumstances, the lender and the loan. Options may include temporarily reducing or pausing repayments, changing the timing of repayments or varying other loan terms. The lender may also decide that a requested arrangement is not appropriate and propose a different option.
Hardship assistance does not usually erase the amount owed. Interest may continue to accrue, and reducing or pausing repayments can increase the balance, extend the loan term or increase the total interest paid. Before accepting an arrangement, ask the lender to explain what will happen to the loan balance, future repayments, loan term and total cost.
Do not agree to a payment amount simply because it has been offered. The arrangement needs to be realistic after allowing for essential living expenses. If your circumstances change or you cannot maintain the agreed payments, contact the lender again promptly.
Refinancing, increasing the home loan or consolidating other debts can sometimes form part of a longer-term strategy, but they are not automatic solutions to financial difficulty. A new loan may not be available, and moving short-term unsecured debts into a home loan can extend the repayment period, increase the total interest paid and place the home at greater risk if repayments cannot be maintained.
Before taking on more credit, using superannuation or selling major assets, consider getting independent financial counselling or legal advice about the consequences and the alternatives available.
A financial counsellor can help you understand your overall position, prepare a workable budget, prioritise debts, negotiate with creditors and consider available concessions or support. Financial counselling accessed through the National Debt Helpline is free, confidential and independent.
You can contact the National Debt Helpline on 1800 007 007 on weekdays or visit ndh.org.au to find a financial counsellor.
If a lender refuses a hardship request, it must give reasons. If you disagree with the decision, you can first make a complaint through the lender’s internal dispute resolution process. If the matter is not resolved, the Australian Financial Complaints Authority provides free and independent dispute resolution.
Do not assume it is too late to ask for help. A hardship request may still be possible after a repayment has been missed or a default notice has been issued. If you receive a default notice, demand for payment or court document, contact your lender, a financial counsellor or legal assistance service immediately, even if the deadline is close.
A mortgage broker can help you understand your current home loan, review the interest rate and structure, and discuss whether there may be suitable lending options to explore. We can also help you identify the right contact point with your lender.
However, the lender’s hardship team decides whether assistance will be provided and on what terms. A mortgage broker is not a substitute for a financial counsellor, particularly where the difficulty involves several debts, essential household expenses or legal action.
The most important step is not to wait and hope the problem resolves itself. Early contact, realistic information and the right support can help protect the options available to you.
This article contains general information only and does not take into account your objectives, financial situation or needs. Before acting on the information, consider whether it is appropriate for your circumstances. Credit approval is subject to lender eligibility, lending criteria and assessment.
