The department, through its Mortgage Relief product, offers short-term assistance to people experiencing difficulties with their home loan repayments. These difficulties may be as a result of unemployment, accident, illness or some other crisis such as a flood.
The Mortgage Relief loan is an interest free loan that must be repaid. There are no application fees or ongoing charges payable.
What you must do first
A Mortgage Relief loan will generally only be offered when all other options have been considered and you are in danger of losing your home. You must demonstrate that you have exhausted all reasonable avenues of help. This includes a postponement or restructuring of your loan repayments with your current lender.
Mortgage Relief provides short-term assistance only. If you are experiencing long-term financial problems, seek advice from a financial counsellor about other options to resolve these problems.
To be eligible for a Mortgage Relief loan, you must meet the following requirements:
- You must be a permanent resident of Queensland.
- You must have sufficient equity in your home to provide security for any assistance given.
- The value of your mortgage must be less than $500,000.
- You must be an owner-occupier and have every intention of maintaining ownership.
- You can not own any other real estate.
- You must be financially distressed and in danger of losing your home.
- 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. This authority will continue until the Mortgage Relief loan is repaid.
How to apply
Application forms can be obtained from the Loans and Debt Management unit of the department. You must complete the application and forward it onto the department for assessment.
How assistance is given
The Mortgage Relief loan is paid directly to your home lender. Funding may be provided to clear any home loan arrears, local government council rates arrears, and to subsidise home loan repayments for a period of up to six months.
While receiving Mortgage Relief, you will be required to meet a portion of your home loan repayments. In some cases, you may be asked to pay your full repayment. At the time you receive the Mortgage Relief loan, you will be required to contact your lender who will advise you on how much you will be required to pay.
The department will secure the Mortgage Relief loan by way of a registered mortgage over your home. A mortgage is a legal document which provides a lender with enforcement rights against a property to recover a loan.
The amount of assistance
The maximum Mortgage Relief loan available is $20,000.
Repaying your Mortgage Relief loan
Mortgage Relief is an interest free loan that must be repaid. The loan is repayable over a 10-year term. However, repayments are not required for the first 12 months. After that, you will be required to make regular monthly repayments, in addition to maintaining your home loan repayment.
The department will contact you 12 months after you receive the loan to arrange for monthly repayments to commence. If you sell your home or re-finance or renegotiate your loan, you will be required to repay the Mortgage Relief loan at that time.
Loan Delivery and Management
Loans and Debt Management
Department of Housing and Public Works
GPO Box 690
Brisbane QLD 4001
Phone: 07 3224 7202
Toll free: 1300 654 322