After you apply for a hardship variation - Mortgage stress
What if my hardship application is approved?
If the lender agrees to the suggested change, the lender must set out the details of the new repayment arrangements in writing within 30 days after they approve the hardship variation. You should start repaying your loan in accordance with your new arrangements.
What if I can’t stick to my new arrangement to repay my loan?
Tell your lender straight away. Keep paying as much as you can afford. You may need to make another hardship variation if your circumstances have changed again.
What if my hardship application is refused or the lender fails to respond in time?
If your lender refuses your hardship variation, they must give reasons. If you are not happy with their response, you can ask to speak to their internal dispute resolution section.
If the lender does not agree to the change you want, or does not respond within the set times, the best step you can take is to lodge a complaint with AFCA for a review of that decision.
Can I apply for another hardship variation?
There are no restrictions on making another hardship variation. But, repeatedly asking for hardship variations may indicate that you are facing financial problems that you are not going to be able to sort out in the long term. You may need to consider your other options.
Can I go to court?
If your lender rejects your application for a hardship variation, you can apply to the court under section 74 of the National Credit Code to change your credit contract. Get legal advice before doing this.
Important information about enforcement proceedings
After you submit a hardship notice, the lender generally cannot start enforcement proceedings under the mortgage until after it has sent its written response about whether or not the hardship variation has been approved. The lender can take some steps, but only the minimum required to protect its legal rights.
This rule does not apply if you have previously applied for the same hardship variation in the previous 4 months.
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