Mortgage Relief Presentation to LARMA Conference October 2013 Housing Programs

Department of Housing and Public Works Mortgage Relief Presentation Overview 1.What current research is telling us 2.The Department of Housing & Public Works Mortgage Relief Loan 3.How Local Government Authorities can use referrals for rate-payers with rate arrears

Department of Housing and Public Works Mortgage Relief Research findings Path from home purchaser to outright home owner is not guaranteed People are falling out of home ownership Divorce and separation are major drivers of housing transitions Housing stress can be temporary or long term An unexpected event can impact on sustainability of home purchase

Department of Housing and Public Works Mortgage Relief Mortgage Hardship Commonly the result of: –Illness or injury –Unemployment –Decreased income or earning potential –Maternity leave –Relationship breakdown –Financial over-commitment

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 Financial hardship outcomes And potentially…a pathway to poverty, particularly for women.

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

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

Department of Housing and Public Works Mortgage Relief Mortgage Relief Loan Short-term need Loan funds can be used for: Mortgage arrears Subsidising mortgage repayments Local government rates arrears

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

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 give written authorisation for their home lender and local government authority to disclose information

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 Other referral options: Financial counsellors eg. Lifeline Legal Aid (Qld)

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

Department of Housing and Public Works Mortgage Relief Questions?