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Changing the terms of your home loan

In times of financial difficulty, changing the terms or conditions of your home loan could be worth considering.

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In times of financial difficulty, changing the terms or conditions of your home loan could be worth considering. 

Hardship variation

One option is a hardship variation. This is a letter you submit to your lender that sets out your reasons for wanting to:

  • change the terms of your home loan, or
  • temporarily pause or reduce loan repayments.

To apply for a hardship variation, contact your bank or lender to find out what's required. Use the template in the link below to help write your letter. In most cases you'll need to include:

  • the details of your home loan
  • why you’re having trouble making payments
  • how long you think you'll have trouble making payments
  • how much you can afford to pay on your loan

Once you've submitted a hardship variation letter and any documents requested, you'll generally get a response within 21 days.

If your hardship variation application is refused

Your bank or lender must provide a reason if your hardship request is refused. If you disagree with the outcome, you should contact their internal dispute resolution team in the first instance.

If you can’t come to an agreement with your bank or lender, get in touch with the Australian Financial Complaints Authority. They can provide guidance on:

  • independent dispute resolution
  • what to do before making a formal complaint
  • how to submit a complaint.
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