Mortgage payment support (Mortgage Relief Loan)
A Mortgage Relief Loan is an interest-free loan of up to $20,000 that provides short-term help for people struggling to repay their home loan.
This could be due to a change in their circumstances, such as unemployment, an accident, illness, or other unexpected crisis.
To be eligible for relief, you must show you’ve already sought financial hardship assistance from your home lender but continue to struggle.
The Mortgage Relief Loan gives temporary help for homeowners; if you’re experiencing long-term financial problems, you should see a financial counsellor.
What the loan can be used for
If you’re eligible, you can use a Mortgage Relief Loan for one or more of the following reasons:
Catch up on missed home loan repayments
If you’ve fallen behind in your home loan repayments, you can use the relief loan to clear your mortgage arrears.
We pay the relief loan directly to your lender.
Subsidise your home loan repayments
The relief loan can be used to subside your ongoing mortgage repayments for up to 6 months in a row.
It can be used to subside only that portion of your monthly repayment that exceeds 30% of your gross (before tax) monthly income.
While receiving the subsidy, you pay either a portion or the full amount of your regular home loan repayments. Ask your home lender how much you’ll need to pay.
We pay the relief loan directly to your lender.
Example
The Jackson family, a household of 4, faced financial strain when the father suddenly lost his job, causing their gross (before tax) monthly income of $9,000 to drop to $4,500.
Their minimum monthly home loan repayment of $2,350, which had previously been 26% of their income, now accounted for 52% of their (reduced) income.
To manage this sudden burden, they applied for a Mortgage Relief Loan.
The loan helped cover the portion of their monthly repayment that exceeded 30% of their income.
The family contributed $1,350 (30% of their income) towards the repayment, while the Mortgage Relief Loan covered the remaining $1,000.
This solution provided temporary relief for several months, allowing the father time to secure a new job and help restore the family’s financial stability.
Pay overdue council rates and water charges
If you’re in debt due to unpaid council rates or water charges, you can use the relief loan to settle the debt, including any penalty interest you’ve been charged.
We pay the relief loan directly to your council or water utility company.
Who can apply
To be eligible for a Mortgage Relief Loan, you must:
- show your unforeseen change in circumstances has resulted in you experiencing short-term financial hardship
- show you’ve exhausted all options to meet your financial obligations to your home lender, council and/or water utility company (e.g. pausing or reducing your loan repayments, setting up a payment plan)
- not have more than a total of $20,000 of mortgage and/or council or water utility arrears
- have a mortgage balance of less than $500,000
- have enough equity in your home to provide security for the relief loan
- be a permanent Queensland resident
- be an owner–occupier and plan to keep living in your home
- not own or part-own any other property.
Financial disclosure
To help us assess your eligibility, we’ll send you a form to sign and give to your home lender or creditor, authorising us to speak to them about your financial situation.
We’ll also send you a form for your lender or creditor to fill in. It requests information about your account (e.g. your monthly instalment amount, missed payments).
To avoid delays, we recommend you give these forms to your lender or creditor’s financial hardship team or, if you’re in arrears, the person you’ve been dealing with at the organisation.
Loan at a glance
Basics
| Loan amount | Up to $20,000 |
| Loan term | 10 years |
| Repayment type | Principal only |
| Interest-rate type | NA |
| Loan security | We take a registered mortgage over your property. |
Rates and fees
| Application fee | $0 |
| Minimum deposit | No deposit required, however you must have enough equity in your home. |
| Interest rate (p.a.) | 0% |
| Repayment amount | Calculated according to your circumstances. The repayments are made in addition to your regular home loan repayments. |
| Account-keeping fees | $0 |
| Direct-debit dishonour fee | $19.58 |
Features and benefits
| Repayment freeze | Repayments are not required for the first 12 months of the loan. |
| Repayment frequency | Flexible (e.g. weekly, fortnightly, monthly) |
| Extra repayments allowed | Yes |
| Redraw facility | No |
| Increase loan | No |
Call to check your eligibility
To find out if you’re eligible for a Mortgage Relief Loan, call us on:
1300 654 322 (Monday–Friday, 8.30am–4.30pm)
It takes 15–20 minutes for us to assess your eligibility. You can speed up the process by having information handy about all the applicants’:
- income
- savings
- debts.
What next?
If we determine you could be eligible for a Mortgage Relief Loan, we’ll send you the application forms to complete and return to us.
More information
- Phone: 1300 654 322 (Monday–Friday, 8.30am–4.30pm)
- Email: hscsloaninformation@housing.qld.gov.au
- Post:
Loans and Debt Management
Department of Housing and Public Works
GPO Box 690
BRISBANE QLD 4001