Goverment to lift ‘hardship’ mortgate assistance limit

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What is a broker worth?The federal government will lift the limit for “hardship” mortgage assistance in an effort to stop struggling homeowners from losing their properties as the credit crunch bites.

News Ltd says people with mortgages of up to $500,000 will now be eligible to ask lenders for help, up from the current cap of $312,400.

Banks and mortgage lenders will decide whether to give the assistance, which can come in the form of extending a loan contract or granting a “repayment holiday”.

The plan, which will be announced on Monday, should be in place by November, News Ltd says.

Federal Superannuation and Corporate Law Minister Nick Sherry said the proposed changes are part of the government’s national consumer credit protection scheme.

“Many Australian families may be missing out on the help these hardship provisions can provide – help that may keep people in their homes during challenging economic times,” Senator Sherry said.

“We don’t believe the current amount or the way it’s calculated is in the best interests of hard-working families, so we’re increasing the threshold to $500,000.”

AAP

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