Direct debit dramas - Mortgage stress

Mortgage stress logoIf you make your mortgage repayments by direct debit, but there is not enough money in your account, the direct debit will be rejected (dishonoured) and your repayment will not be made.

You are also likely to be charged dishonour fees.

If you cannot make a full loan repayment, you should:

  • contact your lender and negotiate a variation to direct debit an amount you can afford, or
  • cancel the direct debit and make repayments using another method (for example, by BPay or direct credit).
Do not cancel a direct debit without making another payment arrangement with the lender.

How do I cancel my direct debit?

Contact your bank, credit union or building society where your savings are held. There is a link to a sample letter at the end of this page.

What if my lender insists on direct debit?

Some lenders insist on repayments by direct debit only. If you are having trouble finding an alternate way to pay your lender, get advice from a financial counsellor or our Mortgage Hardship Service.


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The information displayed on this page is provided for information purposes only and does not constitute legal advice. If you have a legal problem, you should see a lawyer. Legal Aid Western Australia aims to provide information that is accurate, however does not accept responsibility for any errors or omissions in the information provided on this page or incorporated into it by reference.