Housing Services Department of Housing and Public Works Mortgage Relief Presentation by Sandi Phalen Private Housing Programs April 2012

Housing Services, Department of Housing and Public Works Mortgage Relief Presentation Overview What the research tells us The Mortgage Relief Loan How Local Government Authorities can manage rates arrears

Housing Services, Department of Housing and Public Works Mortgage Relief Research Findings People are falling out of home ownership Divorce and separation major driver of housing transitions Housing stress can be temporary or long term Unexpected event can impact on sustainability of home purchase

Housing Services, Department of Housing and Public Works Mortgage Relief Mortgage hardship The result of: Illness or injury Unemployment Decreased income or earning potential Maternity leave Relationship breakdown Financial over-commitment.

Housing Services, Department of Housing and Public Works Mortgage Relief Arrears and repossessions Negative impact on personal wellbeing Increased health problems Increased instances of mental health Decrease in social status and identity Increased problems in personal lives Damaged future hopes and aspirations

Housing Services, Department of Housing and Public Works Mortgage Relief Arrears and repossessions Financial hardship outcomes: –e.g. children missing out on school activities –e.g. inadequate health care And potentially…. a pathway to poverty, particularly for women.

Housing Services, Department of Housing and Public Works Mortgage Relief Households most at risk First home buyers People experiencing relationship breakdowns Unemployed or reduced income People experiencing illness or injury People financially over-committed.

Housing Services, Department of Housing and Public Works Mortgage Relief Mortgage Relief Loan Loan up to $20,000 No interest No application fees or ongoing fees No repayments for first 12 months Loan repaid over 10 years (or on sale).

Housing Services, Department of Housing and Public Works Mortgage Relief Mortgage Relief Loan Short-term need Loan funds can be used for –Housing arrears (lender and local government rates) –Subsidising mortgage repayments

Housing Services, Department of Housing and Public Works Mortgage Relief Eligibility Criteria Australian citizen or permanent resident Living in Queensland Owner-occupiers All parties to property must be applicants Cannot own other real estate Sufficient equity to provide security Value of mortgage under $500,000

Housing Services, Department of Housing and Public Works Mortgage Relief Eligibility Criteria Must be in financial stress –Paying more than 30% of income on mortgage repayments Must given written authorisation for their home lender to disclose information.

Housing Services, Department of Housing and Public Works Mortgage Relief Local Government Rates Arrears Refer arrears clients to department Provide Mortgage Relief Fact Sheet Rates arrears may be an indicator of broader financial problems

Housing Services, Department of Housing and Public Works Mortgage Relief Clients with long term needs Can use Mortgage Relief to sell property –Sufficient equity –Property listed at appropriate level –Legal Aid Queensland

Housing Services, Department of Housing and Public Works Mortgage Relief Contacts Loan enquiries and applications Loan information hotline Brisbane (07) Mortgage Relief factsheets Download from department’s website hpw.qld.gov.au Or google ‘mortgage relief queensland’

Housing Services, Department of Housing and Public Works Mortgage Relief Questions?