Mortgage relief

The Mortgage Relief Fund is an ACT Government initiative that aims to provide repayable, interest-free loans to mortgage holders who are having difficulty making their mortgage repayments because of an unforeseen change in their circumstances. Such changes can include loss of employment, sudden illness or injury within the last 12 months. The fund does not exist to assist mortgage holders who’ve simply neglected their mortgage repayments.

The ACT Revenue Office will consider you for a mortgage relief loan only after you can show that you’ve tried to access all other resources available to you.

This includes discussing hardship assistance with your mortgage lender. For those who qualify, the fund provides short-term assistance only.

The maximum amount you’ll receive for an approved mortgage relief loan is $10,000. You can use this loan only as payment towards arrears on your mortgage, or a combination of arrears and future payments (with arrears capped at $5,000).

If you’re experiencing long-term financial problems, get advice from a financial counsellor on other options for resolving these issues. Assistance may be available for low-income earners through such organisations as Care Inc. Financial Counselling Service

Eligibility

To be considered for a mortgage relief loan, you must meet the following minimum requirements:

• you must have undergone a recent and unforeseen change in circumstance, which has led to short-term mortgage stress
• you must be an owner-occupier
• you cannot own any other interest in property anywhere, including those held in a trust
• you must have a minimum of 10% equity in your home to provide security for any assistance you receive
• the total value of your property must not exceed the median residential property price that corresponds to the ACT’s sales data from the ACT Treasury Directorate; the office updates this figure each month to reflect the current housing market
• you must be able to demonstrate that you’ve contributed some funding towards current mortgage repayments in the six months leading up to your application
• you need proof of current home insurance.

Payment and repayment

If the ACT Revenue Office approves your mortgage relief loan:

• the office will pay it directly into your home loan account at the relevant lending institution
• it will be repayable over a five-year period; your loan repayments will begin six months after the funds have been paid into your home loan account
• it will be interest-free
• it will be secured by way of a caveat over the property for which the mortgage relief loan is sought.

If you sell, refinance or renegotiate the mortgage on the property, you must repay the mortgage relief loan.

Applications

For our office to consider you for a mortgage relief loan, you need to meet all of the eligibility criteria in the application form. It’s also your responsibility to make sure that our office receives all correct, necessary information and documentation, including any required documents from your lending institution.

We will not process your application if the information you provide indicates that you can’t reasonably sustain home ownership or repay your mortgage relief loan.

You may want to seek help from a financial advisor or other service provider in preparing your loan application.

Complete the Mortgage Relief application form and send it to:

ACT Revenue Office
GPO Box 293
CANBERRA ACT 2601