Victorians in financial hardship who are having difficulty paying their mortgage repayments may apply to the State Government for short-term interest-free loans under the Mortgage Relief Scheme, which is managed through the Office of Housing.
Eligibility for mortgage relief depends on:
- the original loan being less than approximately $349,000; and
- the original loan having been spent entirely on the purchase or construction of the home; and
- your capacity to resume normal payments when you stop receiving assistance under the scheme.
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How the Mortgage Relief Scheme works
The Mortgage Relief Scheme operates on the following principles:
- you pay 27% of your gross monthly income off your mortgage, and the scheme pays the difference between this amount and your normal repayment
- the amounts to be paid by yourself and the scheme are fixed for 12 months at the time the loan is approved
- you may claim a maximum of $7,000 of mortgage arrears in 12 months
- you will be entitled to a maximum of $15,000 in Mortgage Relief scheme grants in 12 months (including any arrears payments)
- you can participate in the scheme for a maximum of two years
- when assistance stops you need to start paying your normal mortgage payments plus your Mortgage Relief loan repayments
- if you sell your house, refinance your mortgage, or obtain additional mortgages you will be required to repay your Mortgage Relief loan immediately in a lump sum.
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Further information
For more information on bond loans call Loan Assistance, Office of Housing toll-free on 1800 134 872.