Quick answer: if your home loan repayments are getting hard to make, act before you miss a payment. While your record is clean you can still ask for a better rate, refinance or restructure. If you can’t keep up, you have a legal right to ask your lender for hardship help. Your lender must consider it and respond within the legal timeframes, usually 21 days if it has enough information to decide. Free help is available from the National Debt Helpline on 1800 007 007.
Rate rises, a lost job, illness or a relationship breakdown can turn a manageable mortgage into a monthly worry, fast. This page sets out what you can do at each stage, your rights, and where to get free, independent help. Start with the section that matches where you are now.
Where are you right now?
- Repayments are up to date, but the budget is tight: review your rate and loan before anything slips.
- You’re about to miss a payment, or just have: call your lender’s hardship team now.
- You’re behind, or your lender has said no: talk to a free financial counsellor.
If you’re up to date but the budget is tight
This is the best time to act. Asking about your options doesn’t need a hardship arrangement. Refinancing or applying for new credit may create a credit enquiry, so check what the lender will do before you apply:
- Ask your lender for a better rate. Many lenders keep sharper pricing for existing customers who ask. It’s a five-minute call.
- Compare and refinance. If you pay well above what lenders offer new customers, switching can lower repayments straight away. Our refinance calculator shows the saving and break-even point.
- Extend the loan term, with your eyes open. Resetting a $600,000 loan at 6.5% from 25 years to 30 years cuts repayments by about $259 a month, but adds a lot of interest if you run it to the end. It’s breathing space, not a free saving.
- Use your buffer carefully. Money in an offset or redraw can bridge a few tight months. Have a plan for when it runs out.
- Look at your other debts. Car loans, credit cards and buy-now-pay-later can cost more each month than a rate rise. Consolidating them can lower monthly outgoings, but check the total cost first.
More detail, with worked examples: struggling with mortgage repayments: your options.
Asking your lender for hardship help
If your income has dropped or your costs have jumped because of something like job loss, illness, reduced hours, a disaster or a relationship breakdown, the National Credit Code gives you the right to ask your lender to change your loan. You can ask by phone or in writing. Ask for the hardship or financial assistance team, and say clearly that you are making a hardship request.
Depending on your situation, a lender might agree to:
- pause or reduce your repayments for a set time
- switch you to interest-only repayments for a while
- extend the loan term to lower repayments
- add missed repayments to the loan balance
What to include in your hardship request
- Your name, loan account number and contact details
- What has changed (for example, job loss or illness) and when it started
- How long you expect it to last, if you know
- What you can afford to pay each month right now
- What you are asking for (for example, reduced repayments for three months)
- Any documents that help: a termination letter, medical certificate or recent payslips
Keep a copy, and note the date and the name of anyone you speak to.
How long the lender has to respond
If your lender has enough information, it usually has 21 days to respond. If it needs more, it has 21 days to ask, then 21 days from when you provide it. Different timeframes apply if the information isn’t provided. If the answer is no, the lender must give you its reasons in writing and tell you how to complain to AFCA.
A pause is not a holiday
Interest usually keeps running during a repayment pause and is added to your balance. It buys time, which can be exactly what you need, but the loan grows while it’s in place. Ask the lender to show you the balance and the new repayment at the end of the arrangement.
What it does to your credit file
A hardship arrangement is recorded on your credit report as “financial hardship information”. It stays for 12 months, it can’t be used to calculate your credit score, and the reason isn’t shown. Missed repayments without an arrangement are different: they do hurt your score. That’s why asking early beats waiting.
Free help and complaints
| Who | What they do | Contact |
|---|---|---|
| National Debt Helpline | Free, confidential financial counselling. Counsellors can talk to your lender for you and help with a hardship request. | 1800 007 007 · ndh.org.au |
| Australian Financial Complaints Authority (AFCA) | Free, independent complaints service if your lender says no or doesn’t respond properly. | 1800 931 678 · afca.org.au |
| Moneysmart (ASIC) | Plain-English guides on mortgage stress, budgeting and talking to your lender. | moneysmart.gov.au |
| Services Australia | Check whether you can get income support if you’ve lost work or your income has dropped. | servicesaustralia.gov.au |
If the answer is no: make a complaint to the lender first, using its internal complaints process. If that doesn’t fix it, take it to AFCA. A financial counsellor can help you with both.
Be careful with paid “debt help”. Some debt management and credit repair businesses charge high fees for things you can do yourself, or with a free financial counsellor. Talk to the National Debt Helpline before you sign anything.
Look after yourself too
Money stress is hard, and you don’t have to deal with it alone. If it’s weighing on you, talk to someone: Lifeline on 13 11 14 (24 hours) or Beyond Blue on 1300 22 4636.
Where we can help, and where someone else is better
While your repayments are up to date, we can compare your rate against 40+ lenders, check whether refinancing, consolidating or restructuring makes sense, and do the legwork with the lender for you. It’s free, in English, Nepali or Hindi.
If you’re already behind, mainstream refinancing gets much harder, and a free financial counsellor is usually the better first call. We’ll tell you honestly which one fits your situation.
Mortgage hardship: common questions
What is mortgage hardship?
It means you can’t keep up with your home loan repayments, usually because of something like job loss, illness, reduced hours, a relationship breakdown or a big rise in costs. Under the National Credit Code you can ask your lender to change your loan while you get back on your feet.
How do I ask my lender for hardship help?
Call or write to your lender, ask for the hardship or financial assistance team, and say clearly that you are making a hardship request. Explain what has changed, how long you expect it to last, what you can afford to pay, and what you are asking for. Keep a note of the date and who you spoke to.
How long does my lender have to respond?
Usually 21 days if it has enough information to decide. If it needs more, it has 21 days to ask, then 21 days from when you provide it, and different timeframes apply if the information isn’t provided. If the answer is no, it must give reasons in writing and tell you how to complain to AFCA.
Will a hardship arrangement hurt my credit score?
No. It is listed on your credit report for 12 months as financial hardship information, but it can’t be used to calculate your credit score and the reason isn’t shown. Missed repayments without an arrangement do affect your score.
What if my lender says no?
Make a complaint to the lender first. If that doesn’t fix it, you can take it to the Australian Financial Complaints Authority (AFCA), which is free and independent. A free financial counsellor from the National Debt Helpline (1800 007 007) can help you with both steps.
Should I pay a company to fix my debts or credit file?
Be careful. Some debt management and credit repair businesses charge high fees for things you can do yourself for free, or with a free financial counsellor. Start with the National Debt Helpline before you sign anything.
Can a mortgage broker help with hardship?
While your repayments are up to date, yes: a broker can compare your rate, check whether refinancing or restructuring helps, and do the legwork. Once you are behind, mainstream refinancing gets much harder, and a free financial counsellor is usually the better first call. We’ll tell you honestly which fits.
Sources: National Credit Code hardship provisions as explained by Legal Aid WA and Moneysmart; credit reporting rules from CreditSmart. Repayment figures are estimates for principal-and-interest loans. General information only, not financial, legal or credit advice. Current at 27 October 2026.