Debt & Mortgage Advice

If you’re struggling to meet repayments, you can request a hardship variation from your lender under Section 72 of the NCCP Act. This allows temporary adjustments such as reduced repayments or loan extensions. Lenders must assess your request fairly, and if you can’t reach an agreement, you can escalate your case to the Australian Financial Complaints Authority (AFCA).

ASIC’s Moneysmart recommends acting early and contacting your lender before arrears accumulate. You can also seek guidance from a financial counsellor or legal aid service, who can help negotiate terms, review your budget, or prevent repossession proceedings from progressing.

Refinancing involves replacing your current home loan with a new one, either with your existing lender or a new one, to obtain better interest rates or features. Under the NCCP Act, lenders and brokers are required to act in your best interests when recommending new credit products. The process typically includes a new loan application, updated credit checks, and a property valuation to determine your equity position.

Refinancing can help you reduce repayments, shorten your loan term, or consolidate other high-interest debts into your mortgage. However, ASIC’s Moneysmart warns that refinancing may involve costs such as discharge fees, new loan setup fees, or break fees if you’re on a fixed rate. Always assess whether the long-term savings outweigh these expenses and ensure refinancing supports your broader financial goals.

Lenders determine borrowing capacity by evaluating your income, living expenses, existing debts, and credit history. They must comply with responsible lending obligations under the NCCP Act, ensuring the loan is not unsuitable for your circumstances. Lenders also factor in a “serviceability buffer,” as recommended by APRA, to ensure you can afford repayments if interest rates rise.

Debt advice can help improve borrowing power by identifying opportunities to reduce credit card limits, clear smaller debts, or adjust expenses. Maintaining a strong credit report and stable employment history can also enhance your ability to secure approval and favourable loan terms.

Yes. Many Australians use debt consolidation to roll high-interest loans, such as credit cards or personal loans, into their mortgage. Since mortgage rates are generally lower, this can reduce overall interest costs and simplify repayments.

However, because the mortgage is repaid over a longer period, you may end up paying more total interest over time. ASIC’s Moneysmart recommends assessing your repayment term, fees, and exit costs before consolidating. Debt advice helps determine whether consolidation genuinely improves cash flow or simply spreads out debt obligations.

Mortgage costs can include application fees, valuation fees, settlement costs, ongoing account fees, and Lenders Mortgage Insurance (LMI) if you borrow more than 80% of a property’s value. Some fixed-rate loans may also have break fees if repaid early or refinanced before the fixed term ends.

APRA-regulated lenders must clearly disclose all fees in loan documentation. Comparing offers from multiple lenders or using a licensed mortgage broker can help you identify transparent pricing and minimise unnecessary costs.

When the Reserve Bank of Australia (RBA) adjusts the cash rate, lenders may increase or decrease variable mortgage rates accordingly. Higher rates mean higher repayments, which can create mortgage stress for households already managing other debts.

Debt advice services help you forecast repayment changes under different rate scenarios and consider options like refinancing, loan splitting, or moving to a fixed rate. This proactive approach aligns with APRA’s recommendation for prudent debt management under variable-rate environments.

If you miss repayments, your lender must issue a default notice under the NCCP Act before taking enforcement action. This typically gives you 30 days to rectify arrears. Continued missed payments can lead to legal proceedings and potential repossession.
How does property equity influence mortgage management?
Seeking advice early is key. Contact your lender’s hardship team or speak with a financial counsellor approved by ASIC. Early engagement can help you negotiate repayment plans, refinance options, or hardship variations before legal action occurs.

Equity represents the difference between your home’s current market value and the amount still owed on your mortgage. As you repay your loan or property values rise, your equity increases, giving you greater financial flexibility.

Australians often use equity to fund renovations, invest, or refinance for better terms. However, APRA cautions that accessing equity increases exposure to debt and may raise repayments. Effective debt advice helps ensure equity is used strategically, supporting long-term wealth creation rather than short-term spending.

Your credit report shows past borrowing behaviour, including late payments, defaults, and credit inquiries. Lenders use this information, along with your credit score, to assess reliability and determine loan conditions. Under Australian Privacy Principles, you’re entitled to one free credit report per year from agencies like Equifax, Experian, or illion.

If your credit history is poor, professional debt advice can help you improve your score by reducing outstanding debts, consolidating repayments, or correcting inaccuracies. Over time, maintaining consistent, on-time payments strengthens your creditworthiness.

A redraw facility lets you access extra repayments made on your mortgage, offering flexibility if you need funds later. An offset account links your everyday bank account to your home loan, and the balance in the offset reduces the amount of interest charged on your loan.

Both are common features of Australian mortgages regulated by APRA, and both can save significant interest if used strategically. The best choice depends on your financial habits: offset accounts suit those maintaining higher savings balances, while redraws suit borrowers focused on repayment discipline.

Yes, but lenders will carefully assess your ability to service the loan within your income and expected lifespan of earnings. Retirees may consider options such as reverse mortgages, which allow access to home equity while continuing to live in the property. These are regulated by ASIC to ensure suitability and transparency.

It’s important to seek independent financial advice before taking out a reverse mortgage or extending debt in retirement. Factors like aged pension entitlements, estate planning, and long-term affordability all need to be considered under responsible lending principles.

Making additional repayments on your mortgage reduces the principal balance faster, which can save thousands in interest and shorten the loan term. Even small extra payments compound over time to create significant savings.

ASIC’s Moneysmart mortgage calculator allows you to compare how extra payments affect total interest paid. However, ensure your loan doesn’t charge fees for early repayment, particularly if it’s a fixed-rate product. Debt advice helps you balance repayment acceleration with other financial priorities like investing or building emergency funds.

Life changes such as job loss, illness, or relationship breakdown can significantly affect your capacity to repay your mortgage. Under Australian credit law, lenders must consider hardship applications if your financial position changes unexpectedly.

Debt advice during these times can help you re-evaluate budgets, negotiate new repayment terms, or explore refinancing or government support. Legal Aid and ASIC’s Moneysmart provide guidance on navigating hardship without compromising long-term financial health.

Mortgage debt plays a major role in most Australians’ financial lives. Integrating it into your broader financial plan, alongside superannuation, insurance, and investments, helps ensure consistent progress toward wealth and lifestyle goals.

Debt advice provides structure, helping you model repayment strategies, manage cash flow, and prepare for future rate changes. Aligning mortgage management with professional financial planning creates stability, reduces stress, and strengthens overall financial wellbeing.