Can't cover the next mortgage repayment? Contact your lender early
You do not need to wait for a missed mortgage payment before asking for help. Moneysmart, the Australian Government financial guidance service provided by ASIC, says the earlier you get help, the more options you may have.
If the next repayment may be unaffordable, contact the lender's hardship team. Depending on the assessment, the lender may consider changing the loan terms or temporarily reducing or pausing repayments. This is called a hardship variation; it does not erase the debt or guarantee that a particular arrangement will be approved.
Why contact the lender before a missed payment?
Early contact gives the lender time to understand the problem before arrears grow. Moneysmart's mortgage guidance, updated 2 October 2026, says all lenders have hardship teams and that borrowers should explain why they are having difficulty, how long they expect it to continue and how much they can afford to pay.
Hardship assistance is an assessment rather than an automatic payment holiday. Available arrangements, interest treatment, fees and the total loan cost depend on the lender, contract and individual circumstances.
Prepare three facts before you call
First, describe what changed, such as reduced income, unemployment, medical costs or family circumstances. Second, estimate whether the difficulty is temporary, likely to last several months or still uncertain. Third, write down an amount you can realistically sustain each fortnight or month after essential living costs.
Moneysmart says the lender must write to you within 21 days to advise the outcome of the hardship request. If the lender asks for more information, it must respond within 21 days from when that information is provided.
Agree only to a repayment you can sustain
A smaller payment that can actually be maintained is more useful than promising an amount that remains unaffordable. If an arrangement stops working, contact the lender again as early as possible rather than waiting for another missed payment.
BV Finance can help organise the current loan, repayment capacity and eligible loan options. The lender remains responsible for the formal hardship decision, and free financial counselling is also available through the National Debt Helpline.
Sources and practical tools
General information only. This is not financial advice. Loan options and eligibility depend on your personal income, liabilities, assets and lender assessment criteria.
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