Mortgage relief loan

This loan provides short-term help to people who are having difficulties with their home loan repayments. These difficulties may be from unemployment, accident, illness or some other crisis.

The loan is interest free with no application fees or ongoing charges. You can borrow a maximum of $20,000 which is repayable over 10 years. Repayments start 12 months after getting the loan.

What you must do first

The loan can only be offered if you are in danger of losing your home and if you have tried other avenues of help. This includes deferring or restructuring loan payments with your current lender.

As a Mortgage Relief Loan gives only short-term help, if you are experiencing long-term financial problems you should get help from a financial counsellor.

Am I eligible?

To be eligible for the loan you must:

  • have enough equity in your home to provide security for the loan
  • have a mortgage of less than $500,000
  • be an owner-occupier wanting to keep ownership
  • not own any other real estate
  • be in financial hardship and in danger of losing your home
  • show that mortgage repayments now exceed 30% of your gross household income due to a change in your circumstances
  • have taken all reasonable steps to meet your liabilities
  • provide written authorisation for your home lender and other creditors to disclose information about your financial affairs to us. This authority will continue until the Mortgage Relief Loan is repaid.

Applying for the loan

Contact our loan hotline to apply or get more information;

  • Email:
  • Phone: 1300 654 322 Monday to Friday, 8.30am to 5.00pm
  • Post:
    Loans and Debt Management
    Department of Housing and Public Works
    GPO Box 690

How the loan is paid

The loan is paid directly to your home lender and local council (if applicable) and can be used to clear home loan arrears, council rate arrears and to subsidise home loan repayments for up to 6 months.

While receiving mortgage relief you will need to meet a portion of your home loan repayments, or in some cases the full repayment. Once you receive the mortgage relief loan you will need to contact your home loan lender who will tell you how much you must pay.

We will secure the mortgage relief loan by taking a registered mortgage over your home. This is a legal document which gives a lender enforcement rights against a property to recover a loan.