Tip:
Highlight text to annotate it
X
Before I phoned the bank I had a quick look at the MoneySmart website. When I spoke to
the bank I told them that my husband lost his job and we were having difficulty paying
our mortgage. They said it was good that we contacted them to let them know what was going
on. They said I needed to put the details in writing so we could apply for a hardship
variation. A hardship variation is where you go the bank
and you make a formal application in writing to the bank to vary something in your mortgage
contract. Lenders do have an obligation to consider
any variation request. So that means that if you can’t pay, the lender should be trying
to help you get on top of your financial circumstances and doing what they can to make that happen.
The bank gave us a hardship variation. They accepted that our situation was short term
and we had a good plan to get our mortgage payments back on track. So that means that
we will pay a little more over a longer period of time, but it was worth it. We really learnt
how important it was to face the facts and talk to our lender.