If you're finding it hard to keep up with your mortgage payments in Springfield and Ipswich, QLD, you're not alone - and more importantly, you have options. Whether it's job loss, reduced hours, illness, or rising rates pushing your repayments beyond what you can manage, there are pathways that can help you stay in your home.
The key is acting early. Lenders have hardship support programs, and there are refinancing options that can reduce your monthly commitment significantly. Whether you're in Goodna - Raceview or anywhere across the region, reaching out before you miss payments opens more doors than waiting.
Zest Mortgage Solutions helps Springfield and Ipswich, QLD homeowners explore every option available to them across 60+ lenders, completely free of charge.
Here's what you should know about the support available and how to access it.
What options exist when you're struggling with mortgage payments?
Several pathways can help reduce your monthly burden or provide temporary relief. The right choice depends on your specific circumstances, but acting quickly gives you the most options.
Your main options include hardship assistance from your current lender, refinancing to a lower rate or longer term, switching to interest-only payments temporarily, or accessing equity if you have it. In some cases, selling and downsizing might be the most financially sound choice, though that's typically a last resort.
How does lender hardship assistance work?
Every lender is required to have a hardship policy and must consider reasonable requests for assistance. The earlier you contact them, the more flexibility they typically have to help.
Common hardship options include:
- Payment holidays: temporary suspension of repayments for 3-6 months while you stabilise your situation.
- Reduced payments: switching to interest-only temporarily or extending your loan term to lower monthly amounts.
- Capitalising arrears: adding missed payments back into your loan balance so you can restart with a clean slate.
- Rate relief: some lenders offer temporary rate reductions for customers in genuine hardship.
The key is demonstrating genuine hardship and having a realistic plan to return to normal payments. Temporary setbacks like illness or job loss are viewed more favourably than ongoing affordability issues.
Unsure which option suits your situation best?
Every situation is different, and timing matters. A conversation with someone who understands all your options can help you make the right choice before things get harder.
Can refinancing reduce your monthly payments?
Yes - refinancing to a lower rate or extending your loan term can significantly reduce your monthly commitment. Even a 0.5% rate reduction can save hundreds per month on a typical Springfield and Ipswich mortgage.
As of June 2026, competitive variable rates start from approximately 5.69% p.a. If you're on an older, higher rate, switching could provide immediate relief. Extending your loan term also reduces monthly payments, though it increases the total interest paid over time.
Some lenders specialise in helping borrowers with temporary financial stress. They may accept reduced income documentation or offer more flexible serviceability assessment if your situation is improving.
What about switching to interest-only payments?
Interest-only payments can cut your monthly commitment by 30-40%, providing breathing room while you stabilise your finances. Most lenders allow interest-only periods of 1-5 years for owner-occupiers facing hardship.
The trade-off is that you're not paying down your loan balance during the interest-only period. But for temporary financial pressure, this can be the difference between keeping and losing your home.
Some borrowers combine interest-only with refinancing to maximise their monthly savings. This strategy works best when your financial stress is temporary and you have a clear path back to normal payments.
Should you access equity to consolidate debts?
If high-interest credit card or personal loan debts are pushing your budget over the edge, consolidating them into your mortgage at a much lower rate can reduce your total monthly commitments substantially.
This only works if you have sufficient equity in your property and can demonstrate that consolidation solves your affordability problem. It's also crucial that you don't run up new debts after consolidation.
A broker can assess whether equity release makes sense for your situation and which lenders will consider it during financial stress.
How to approach your lender for hardship assistance
Step 1: Contact us first
Get in touch before contacting your lender. We can help you understand all your options, including whether refinancing might give you a better outcome than hardship assistance.
Step 2: Document your hardship
Gather evidence of your financial stress - termination letters, medical certificates, reduced payslips, or other documentation that proves your hardship is genuine and beyond your control.
Step 3: Prepare a realistic budget
Work out what you can realistically afford to pay and for how long. Lenders want to see that you've thought through your situation and have a plan to return to full payments.
Step 4: Contact your lender's hardship team
Most lenders have dedicated hardship departments that are separate from their general customer service. Ask specifically to speak to the hardship team when you call.
Step 5: Get any agreement in writing
If your lender agrees to temporary assistance, make sure you get the terms in writing. This includes when payments will resume, any changes to your loan terms, and what happens if your situation doesn't improve as expected.
Step 6: Review your options regularly
If hardship assistance isn't enough or doesn't apply to your situation, we can explore refinancing options across our 60+ lender panel to find a solution that works better for your budget.
What mistakes should you avoid when struggling with payments?
The biggest mistake is avoiding the problem and hoping it goes away. Missing payments without communication damages your credit rating and limits your future options.
Don't drain your savings or superannuation to keep up with unsustainable payments. If the affordability problem is ongoing rather than temporary, these funds are better used as a deposit for a more affordable property after selling.
Avoid payday lenders or high-interest credit to make mortgage payments. This makes your situation worse, not better. Similarly, don't refinance to a higher rate just because the lender says yes - explore all your options first.
Ready to find out what options are available to you?
We compare loans from 60+ lenders across our Springfield, Ipswich and Flagstone offices. Free service, no cost to you.
Frequently Asked Questions
Will applying for hardship assistance hurt my credit rating?
No - applying for and receiving hardship assistance does not appear on your credit report. However, missed payments before you apply for assistance will affect your rating, which is why early contact is so important.
Can I refinance while on hardship assistance?
It depends on your lender and the type of assistance. Some forms of hardship (like temporary rate reductions) don't prevent refinancing, while others (like payment holidays) might. We can assess your specific situation and identify which lenders will consider your application.
How long does hardship assistance usually last?
Most lenders offer hardship assistance for 3-6 months initially, with the option to extend if your circumstances haven't improved. The assistance is designed to be temporary while you get back on your feet.
What if my lender says no to hardship assistance?
Lenders must consider reasonable hardship requests, but they can decline if they don't believe the assistance will solve your long-term affordability problem. If declined, refinancing to a more suitable loan structure might be your best option.
Should I sell my home before I fall behind on payments?
If your affordability problem is permanent rather than temporary, selling before you damage your credit rating often gives you more options and a better financial outcome. We can help you work out whether your situation is likely to improve or if downsizing makes more sense.
Is it better to use a broker or contact my lender directly?
A mortgage broker, every time. We understand what options exist across all lenders, not just your current one. If hardship assistance isn't suitable or sufficient, we can explore refinancing options that might provide a better long-term solution for your budget.
Your Next Steps
When you're struggling with mortgage payments, time matters. The earlier you explore your options, the more choices you have to keep your home and protect your credit rating. Whether it's hardship assistance, refinancing to a lower rate, or restructuring your loan, acting quickly gives you the best chance of finding a solution that works.
Ready to find out what options are available in your specific situation? Book a free chat with the Zest team or call (07) 3461 6499. We'll assess your circumstances with sensitivity and explore every pathway available to help you stay in your home.
External Resources
About the author
Mel Wright
Director and Principal Mortgage Broker, Zest Mortgage Solutions
Mel is the founder and Principal Mortgage Broker at Zest Mortgage Solutions, helping buyers across Springfield, Ipswich and Flagstone finance their homes. An MFAA member and winner of the MFAA Newcomer Award (QLD) in 2022, she built Zest after an extensive career in banking, on a simple belief: mortgages are not that difficult, you just need people who care. Her team compares loans across a panel of 60+ lenders.
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