Mortgage Relief loans

Mortgage Relief loans offer short-term assistance if you are experiencing difficulties with your home loan repayments. If you are experiencing long-term financial problems, seek advice from a financial counsellor.

A Mortgage Relief loan:

• is an interest free loan of up to $20,000
• must be repaid over a 10-year term
• is repayment free for the first 12 months
• has no application fees or ongoing charges payable.

Eligibility criteria

To be eligible for a Mortgage Relief loan, you must meet the following requirements:

• You must be financially distressed and in danger of losing your home.
• Your mortgage must be less than $500,000.
• You can not own any other real estate.
• You must have sufficient equity in your home to provide security for any help given.
• You must be an owner-occupier and have every intention of maintaining ownership.
• A change in your circumstances must have caused the level of your home loan repayments to exceed 30% of your gross household income.
• You must have taken all reasonable steps to meet your liabilities, and be able to demonstrate that you have been making home loan repayments of more than 30% of your gross household income.
• You must complete an application form and give written authorisation for your home lender and other creditors to disclose information concerning your financial affairs to the Department of Communities. This authority will continue until the Mortgage Relief loan is repaid.

As well as meeting the eligibility criteria, you must also demonstrate you have exhausted all reasonable avenues of help. This includes a postponement or restructuring of your loan repayments with your current lender.

For more information on Mortgage Relief loans, you can:

• contact us on 1300 654 322 (toll free) or (07) 3224 7202
• write to:
  Loan Delivery and Management
  Loans and Debt Management
  Department of Communities
  GPO Box 690
  Brisbane QLD 4001