The Australian Capital Territory and Queensland governments provide mortgage relief assistance to eligible home owners experiencing short term financial hardship. Assistance is in the form of interest-free loans to cover arrears and some future repayments.
The eligibility requirements, amount of assistance and repayment arrangements varies between each jurisdiction as detailed below.
Australian Capital Territory
Administered by ACT Revenue Office
To get an application form visit the ACT Revenue Office's mortgage relief page or call (02) 6207 0028.
Amount available
The maximum amount loan amount is $10,000. This money can only be paid towards arrears on the mortgage or a combination of arrears and future mortgage payments (with arrears capped at $5,000).
Key conditions
- you had a recent and unforeseen change in circumstances which has led to short term mortgage stress
- you own and live in the property
- you do not own any other property anywhere, including under a trust
- you must have at least 10% equity in your home
- the total value of the property must not be higher than the median ACT house price – according to ACT’s sales data from the ACT Treasury Directorate (the office updates this figure each month)
- you can show you contributed some funding towards current mortgage repayments in the last six months
- you can provide an insurance certificate to show the home is insured.
Payment and repayment arrangements
A mortgage relief loan, if approved, is:
- paid directly into your home loan account
- repaid over five years, with the first repayment starting six months after the funds were paid into your home loan account
- interest free
- secured by a caveat over the mortgaged home.
Immediate repayment is required if you sell, refinance or renegotiate the mortgage.
Queensland
Administered by Queensland Government – Department of Housing
To find out more visit the Queensland Government's mortgage relief loan page or call 1300 654 322.
Amount available
Interest free loan of up to $20,000, paid directly to home lender or local council to clear home loan arrears and/or council rate arrears, and subsidise home loan repayments for a period of up to 6 months.
Key conditions
- you must owe less than $500,000 on your mortgage
- there is enough equity in the home as security for the loan
- you own and live in the property as your principal place of residence
- you cannot own or part-own additional property
- you have exhausted all other avenues of help, including deferring or restructuring loan payments with current lender
- you must be in financial difficulty, in danger of losing the home and had a change in circumstances which caused your home loan repayments to exceed 30% of your gross household income
- you have taken all reasonable steps to pay your debts and have been making home loan repayments of more than 30% of gross household income
- you put in a written application form, which includes information and authorisation from your home loan lender.
Payment and repayment arrangements
A mortgage relief loan, if approved, is:
- paid directly to the your home loan account and/or local council (for council rates)
- secured by a registered mortgage to the Queensland Government – Department of Housing
- repaid over a maximum 10 year period, with the first payment starting 12 months after the funds were paid into your home loan account and/or local council
- interest free
- secured by a caveat over the home
- immediate repayment is required if you sell, refinance or renegotiate the mortgage.