Struggling With Your Home Loan Repayments? Act Early
Four rate rises in 2026 have taken the cash rate to 4.60%, and with everyday costs still high, many households are finding their repayments harder to keep up with. If that sounds like you, you are not alone, and mortgage hardship help is available.
The most important thing is to act early. It is much easier to fix a problem before you miss a repayment than after you fall behind. Lenders have hardship processes for exactly this situation, and free services can help you work through it.
This page explains your rights, the help lenders can offer, how to ask for it, and where else to turn. It is general information only.
Signs You May Be Heading for Mortgage Stress
Mortgage stress rarely arrives overnight. Some early warning signs include:
- Your savings or offset balance is shrinking each month just to cover everyday costs, or you are relying on redraw.
- You are using credit cards, buy now pay later or a personal loan to pay for groceries, bills or fuel.
- Your fixed rate is about to end and the new variable repayment is a big jump. (See our guide to options when your fixed rate ends.)
- Your income has dropped because of reduced hours, job loss, illness or a relationship breakdown.
If any of these sound familiar, review your budget now. Our budget planner calculator can help you see where your money is going, and our article on the September 2026 rate rise explains what the latest increase means.
Your Right to Ask for Mortgage Hardship Help
For most home loans (those covered by the National Credit Code), you have the right to ask your lender to change your loan because you are in financial hardship. This is called a hardship request (or hardship variation), and you can make one if you are temporarily unable to meet your repayments for any reason.
Once you make a request, you have some important protections:
- Your lender must write to you within 21 days to let you know the outcome. If it asks you for more information, it must respond within 21 days of you providing it.
- If your lender says no, it must tell you why, and tell you how to complain.
- If it is your first hardship notice in a three-month period, the lender generally must stop enforcement action until it responds (this protection doesn’t apply if the lender already has a court judgment).
What help can a lender offer?
Lenders assess requests case by case, but common types of help include:
- Reduced repayments for a set period.
- A temporary pause (deferral) on repayments, usually for a few months, where you can show you will be able to resume normal repayments.
- An interest-only period, so you only cover the interest for a while.
- A longer loan term, which lowers each repayment but means you pay more interest overall.
- Adding arrears to the loan so you can start fresh with an achievable repayment.
A repayment pause is not free
A pause can be a lifeline, but it is not a holiday. Interest usually keeps accruing during a deferral and is added to your loan balance, so you will owe more when it ends. The lender will then typically increase your repayments, extend your loan term, or both. Before you agree, ask exactly what your repayments will be afterwards.
How to Make a Hardship Request
- Work out what you can afford. Do a realistic budget so you know what repayment you can keep up.
- Contact your lender’s hardship team. Call, email or write, and say that you are experiencing financial hardship.
- Give your loan details. Your name, loan account number and current repayment amount.
- Explain what has happened. Why you are having trouble, how long you expect it to last, and how much you can afford to repay.
- Have documents ready. Lenders may ask for payslips, bank statements, a Centrelink statement, a medical certificate or a letter from your employer.
- Keep records. Note who you spoke to and when, keep copies of emails and letters, and get any agreement in writing.
The National Debt Helpline has a free sample hardship letter you can adapt. A financial counsellor or your broker can also speak to your lender on your behalf, with your permission.
Other Options a Broker Can Help With
Hardship arrangements are designed for temporary problems. If higher rates mean your repayments are now a permanent stretch, a longer-term fix may suit you better. Depending on your circumstances, that might include:
- Refinancing to a sharper rate or a longer term. If you still pass a lender’s serviceability test, a lower rate or a reset loan term could bring repayments down. Sometimes a repricing request to your current lender is enough. Learn more about refinancing your home loan.
- Consolidating debts. Rolling high-interest cards or personal loans into your home loan can lower monthly outgoings, though spreading debt over a longer term can cost more interest overall. Read our guide to debt consolidation in Australia.
- Restructuring or splitting your loan. For example, splitting into fixed and variable portions for more certainty.
- Selling, as a last resort. Selling on your own terms usually leaves you better off than having the lender take possession and sell.
Refinancing isn’t always possible. If you have missed repayments or your income has dropped, a new lender may not approve you, which is why it pays to review your options early.
Free Help and Support
You don’t have to work through this alone. These services are free:
- National Debt Helpline: Call 1800 007 007 (weekdays, 9.30am to 4.30pm) for a free, confidential financial counsellor.
- Moneysmart: ASIC’s guide to your rights when you have problems paying your mortgage.
- Salvation Army Moneycare: Free and confidential financial counselling. Call 1800 722 363 to make an appointment.
- Way Forward: A not-for-profit that helps with unsecured debts such as credit cards. Call 1300 045 502.
- Australian Banking Association Financial Assistance Hub: Plain English guide to the hardship options banks offer.
- Services Australia: If you already receive an income support payment or Family Tax Benefit, you may be able to get part of it early as an advance.
- Find unclaimed money: Search for money in old bank accounts, shares or life insurance.
Looking after yourself and your family
- Beyond Blue: Call 1300 22 4636, 24/7, for free counselling support.
- 1800RESPECT: Call 1800 737 732, 24/7, if you are affected by domestic, family or sexual violence.
If your lender won’t help
If your lender refuses your request or you are unhappy with how it was handled, first complain through the lender’s internal complaints process. If that doesn’t resolve it, you can take the matter to the Australian Financial Complaints Authority (AFCA) on 1800 931 678. AFCA is free for consumers, and lodging a complaint before the lender has a court judgment can put a hold on enforcement action while it looks at your case.
How Ingram Financial Can Help
If your repayments are getting harder to manage, we can review your loan against dozens of lenders on our panel. We’ll tell you honestly whether refinancing, restructuring or a rate review is likely to help.
If refinancing isn’t viable, we’ll say so and help you prepare a hardship request or point you to a financial counsellor. There is no cost for our standard broking services.
We’re based in Bangor in the Sutherland Shire and help clients Australia-wide. Get in touch for a confidential chat.
Frequently Asked Questions
If your lender agrees to a hardship arrangement, it can be listed on your credit report for the months the arrangement is in place, and the listing is deleted after 12 months. A hardship arrangement does not affect your credit score, and as long as you stick to the agreed arrangement you are shown as up to date.
Usually, yes. Interest generally continues to accrue while repayments are paused and is added to your loan balance. Afterwards the lender will typically increase your repayments, extend your term, or both.
Under the National Credit Code, your lender must write to you within 21 days to tell you the outcome. If it asks for more information, it must respond within 21 days of receiving that information. If it says no, it must give you the reasons and tell you how to complain.
It is harder, but not always impossible. Most lenders look closely at recent repayment history, so missed repayments can limit your options or mean a higher rate. We can tell you honestly whether refinancing is realistic for you.
Your lender must explain why. You can then make a complaint through the lender’s internal complaints process, and if you are still not satisfied you can go to the Australian Financial Complaints Authority (AFCA) on 1800 931 678. AFCA is free for consumers.
The information on this page is general in nature and does not take into account your objectives, financial situation or needs. Lending criteria, fees and charges apply. Consider whether it is appropriate for you and speak to us for advice specific to your situation. Hardship rules and support service details were checked against official sources in October 2026.
Need Some Help?
Not sure where to start? That’s exactly what we’re here for. Drop us a message and we will get back to you within one business day with clear, honest advice tailored to your situation.