Managing Mortgage Stress and Financial Hardship
- marketing60313
- Sep 5
- 1 min read
Unexpected events such as job loss, illness or rising interest rates can make mortgage repayments difficult. If you’re struggling:
Contact your lender immediately: Lenders have hardship teams that can offer payment pauses, reduced repayments or other arrangements. Moneysmart notes that hardship arrangements do not affect your credit score.
Review your budget: Cut discretionary spending and contact other creditors to negotiate payment plans.
Seek independent advice: Free financial counsellors can help you assess your options.
Consider refinancing: A broker can evaluate whether switching to a lower rate or extending your loan term will make repayments more manageable. Be wary of capitalising arrears into your loan – this can increase the long‑term cost.
The sooner you act, the more options you have. Ignoring the problem may lead to default and potential repossession.