Financial hardship

There are many reasons you may need assistance with getting back on track financially.

These include, but are not limited to:

• Cost of living pressures
• Changes in employment or income
• Health changes, including behavioural issues
• Changes in personal relationships, such as separation or loss of a loved one
• Family and domestic violence
• Natural disasters

Please get in touch with us so we can support you through your period of financially difficulty.

Having a financial hardship arrangement will not stop you from applying for a new loan or credit in the future. A lender will still need to check whether you can afford the loan or credit. A lender may ask for some additional information about your finances to check that you can repay a new loan or new credit.

Yes. If you miss payments, it will show on your credit report. This means your credit score will go down, which can make it harder to get credit in the future. An arrangement will change how often or how much you need to pay. If you keep to the arrangement, then your credit report will show your payments as up-to-date. And this will help to stop your credit score going down.

No, the arrangement or the note about it on your credit report won’t impact your credit score.

Your credit report will show a note that you have agreed to an arrangement to manage your payments to us. Technically, it’s called ‘financial hardship information’.

The note:

• does not show why you are having trouble paying or the details of the arrangement,
• will not affect your credit score, and
• comes off your credit report after 12 months

There are a number of options available to you during, or at the end of the financial hardship assistance period, which include:

1. Recommencing principal & interest loan repayments - your repayments will increase within your agreed loan term to make up for any missed payments during your financial hardship period. 
2. Request reduced principal & interest loan repayments and extend the term of your loan. If you have demonstrated that you can make repayments on your home loan on a principal and interest basis, we can discuss this option with you.
3. Request Interest only repayments. If you’re unable to recommence making your contractual repayments, but are at a minimum able to make interest only repayments for a limited period, we can discuss this option with you. Subject to Bank approval and loan qualifying conditions based on your individual circumstances.

Visit our Comprehensive Credit Reporting page for more information on how we report to credit reporting bodies and understanding your credit score. If you’d like more information about financial hardship reporting, credit scores and credit reports, visit the CreditSmart® website.

If your financial position is unlikely to improve, you may be better off selling your property, or living somewhere else and renting out your property until you can afford the repayments again.

This is a tough decision to make. But it's better to sell your property yourself rather than have us take possession and sell it for you. You'll avoid paying any legal costs passed on by us.

If you take no action and get to the end of your financial hardship period, without being able to make any repayments or taking the necessary steps to sell your property, the Bank may not have alternative option and choose to sell your property for you.

This is a last step and requires us to take legal action at your expense. It’s also more than likely that both defaults and judgement would be recorded on your credit file.

We want to help you explore your options and make the best possible financial decision.

Selling your property is a big step, so we recommend that you seek financial counselling or independent legal advice about this.

If you’re experiencing difficulties meeting your home loan repayments, one of the hardest decisions you’ll have to make is to sell your property.

Lenders Mortgage Insurance gives Members the opportunity to purchase a property without a 20% deposit. It makes it possible for us to support your purchase, while protecting us from a loss if your property has to be sold and is sold for less than the amount owing on the home loan.

Lenders Mortgage Insurance protects us from a loss. If there is an amount outstanding after the sale of the property, we may make a claim under the Lenders Mortgage Insurance. Helia Financial Mortgage Insurance Pty Limited (Helia) is the provider or underwriter of Lenders Mortgage Insurance. If Helia pays our claim, Helia may choose to recover the amount of the claim and any other costs, directly from you.

It is important to note that Lenders Mortgage Insurance does not protect you or any guarantor. It should not be confused with Mortgage Protection Insurance which is a separate insurance policy that protects you if you are unable to make repayments on your loan. Therefore, Lenders Mortgage Insurance does not stop you from being liable for any shortfall that may arise if the sale of your property does not fully repay your debt to us.

 If your home loan has Lenders Mortgage Insurance, Helia’s team of Loss Mitigation consultants’ include qualified real estate agents who will work with you and us on any borrower shortfall sale scenario providing guidance and recommendations on:

• Timeframe to sell
• Real estate marketing campaigns
• List price and sale offers
• Costs that Helia may cover such as moving costs
• A portion of debt release of the shortfall claim amount

With the support of Helia’s property experts, the team can help you sell your property to allow you to exit the property in a dignified and most cost-effective manner.

The effects of financial difficulty can really take its toll. If you’re struggling with your mental health, please get in touch with one of the external support services listed. One conversation can make a big difference...