Help for borrowers
Struggling to keep up with mortgage payments can be overwhelming, but support is out there.
If you’re a homeowner facing financial challenges, reach out to your lender promptly and inquire about financial hardship assistance.
They're ready to help you explore all options available to you. Taking this step will help you navigate your financial situation.
If all avenues are exhausted and the property is to be sold for less than what is owing on the loan, you can find more information below.
Helpful resources
As well as talking to your lender, you’ll also find help and support from a range of organisations.
- The Australian Banking Association explains practical ways your bank can help you out of financial difficulty
- Visit ASIC’s Money Smart website to find answers to common questions
- Call the National Debt Helpline on 1800 007 007 or visit the NDH website
Financial Counselling Australia is a not-for-profit organisation that advocates for an Australia with fewer people in financial hardship.
For lenders
We’re committed to making things as easy as possible for you to help your customers facing genuine hardship.
You understand your customers situations and are best-placed to consider their application for hardship assistance.
For more information, email our Claims team at [email protected]
FAQs
If the borrower is unable to repay their home loan, the property might need to be sold or the borrower may choose to sell it.
Where the money received from the sale of the property isn’t enough to repay the outstanding loan owing to the lender and where the loan is insured by us, the lender will claim this shortfall from us. We'll pay this to the lender in accordance with the LMI agreement. This amount is usually the difference between the outstanding loan balance, the sales costs, and the proceeds from the sale of the property.
Once a claim has been settled with the lender, the outstanding shortfall owed by the borrower is typically passed on from the lender to us. Then, we may seek to recover the remaining shortfall from the borrower and any guarantors.
Financial hardship can vary from person to person, but it generally refers to a situation where an individual or household struggles to meet their financial obligations. Common qualifiers include loss of income, divorce, debt overload.
Each situation is unique, and we encourage you to contact your lender as early as possible to discuss your individual circumstances directly with them.
Contact your lender in the first instance and ask about their financial hardship assistance.