Compassionate grounds—mortgage assistance
You may be eligible for early release of superannuation on specified compassionate grounds to prevent your home from being sold by the lender with whom you have the home's mortgage.
This ground does not include rent or making payment on a mortgage that:
- you expect to have difficulty paying in the future (but are not yet in arrears for)
- you are in arrears for, but not to the extent that the lender has decided to sell
- a business you own or a friend is liable for
- is only secured by a second or investment property.
You need to complete the Mortgage Assistance Application form if you would like to apply for the early release of your superannuation on specified compassionate grounds for any of the following expenses:
- payment of arrears on your mortgage to prevent the mortgagee (your lender) from selling your home
- payment of overdue land rates to prevent the sale of your home by the council (or equivalent authority).
To check whether you are eligible, ask yourself the following questions about possible early access to your superannuation on mortgage assistance grounds.
- Is your mortgagee (sometimes called a lender) or council (or equivalent authority) threatening to repossess or sell your home if the arrears on your mortgage/rates are not paid within a specified timeframe?
- Are you unable to pay the arrears by any means other than accessing your superannuation?
- Is the property under threat of sale your principal place of residence (the home where you usually live)?
If you have answered ‘no’ in response to any of the above questions, it is unlikely that you are eligible for the early release of superannuation on specific compassionate grounds.
The supporting documents you need to supply are dependent upon the type of expenses you are applying for.
To avoid any delays in processing your application, you will need to get the required documentation before submitting your application.
For payment of arrears on your mortgage to prevent the mortgagee from selling your home, you should provide:
- a written notice or legal statement from your lender that states:
- that if the arrears amount is not paid within a specified time frame, it will foreclose the mortgage, take possession of or sell the security property
- the current arrears amount owing that must be paid in order to cease action to sell or take possession of your property
- the address of the property under threat of sale
- the amount equal to three months’ repayments on the loan
- the amount equal to 12 months’ interest on the outstanding balance of the loan
- the name of the lending institution, BSB and account number for the loan account.
The letter should also be on the lender’s letterhead and dated within the last 30 days.
For payment of overdue land rates, and to end action threatened by the council (or equivalent authority) to sell your home, you should provide a written statement or a legal notice from the council (or equivalent) which states:
- that if the arrears amount is not paid within a specified timeframe, it will take possession of or sell the property
- the current arrears amount owing
- the address of the property that is under threat of sale
- how long the rates have been in arrears
- that payment of the arrears will be accepted to cease the forced sale of the property.
The letter should also be on the council’s (or equivalent) letterhead and dated within the last 30 days.
If you have borrowed money to pay expenses
The following information should be provided in addition to the information listed above.
If you have borrowed money to pay for expenses and are claiming the early release of superannuation benefits to repay the loan, you must provide specified supporting documentation:
- written evidence from your mortgagee or council (or equivalent authority):
- that the borrowed funds were applied to the mortgage/rates
- of the date/s of the payment/s
- of confirmation that the payment/s will end foreclosure action.
If the money was borrowed from an individual, such as a family member or a friend, you must provide:
- a statutory declaration written by the person you borrowed the money from that confirms:
- the date on which he or she gave you the money
- how much he or she gave you
- his or her understanding of what the money was needed for
- how much you still owe
- the agreed date the loan was to be repaid by
- receipts showing how the borrowed funds were spent
- documented evidence that the loan took place. This could be demonstrated by bank statements, money transfer receipts, cheque stubs, or credit card/bank statements in the lender's name showing the payment of your expenses.
If the expenses were paid using a credit card, you must provide:
- copies of your credit-card statements showing the payment of the claimed expenses
- receipts showing the payment of the claimed expenses
- a currently dated credit-card statement that details the:
- current balance owing
- minimum monthly repayment
- arrears owing (if any)
- total credit limit.
If the expenses were paid using a loan from a financial institution, you must provide:
- receipts showing how the borrowed funds were spent
- a written statement from the institution which gave you the loan which states:
- the amount of the loan
- the date the loan was given
- the purpose of the loan (if known)
- the date by which repayment was required
- the amount still owing
- the repayment amount and frequency
- the amount of arrears owing (if any).