Fed Govt increases hardship threshold to $500,000
The Federal Government has announced a plan to allow borrowers to request changes to their loan contracts on the grounds of financial hardship, such as job loss. The measures will apply to loans up to $500,000.
Borrowers can access free legal representation from the Financial Ombudsman Service if their lender refuses to grant hardship assistance.
Currently, only those with loans under $312,000 are entitled to make the claim. Corporate Law Minister Nick Sherry says this excludes many home owners in capital cities.
