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What if I can't make my repayments? – Cobblestone Financial

What if I can't make my repayments?


Financial Hardship


What happens if I can't make my repayments?


All lenders must have financial hardship policies in place and all borrowers are entitled to this if they face unemployment and the like. 

Remember if you contact your lender, straight up, you can stop or reduce your repayments under hardship circumstances. This means you do not get a mark on your credit report and you won't get a default. So long as you stick to the agreed arrangement that you make with your bank.

This applies to all finance, not just mortgages. You have to act fast and be upfront. Do not leave it until it's too late. If you do find yourself out of work, contact your lender immediately. If you let your payments fall behind then you are at risk of a decreased credit score and possibly a default. Once that is done it can't be undone.

Hardship is basically a short term thing until you get back on your feet. You will have to submit your current household expenses and show that your current income cannot meet your expenses. Some lenders only allow you to go on hardship for 3 months whereas others have unlimited time.


Some lenders let you tack what you owe back onto the loan and others literally hit the pause button until you are back on your feet. It's different for every bank and you have to keep the lines of communication open.

If you go to your lender website and type in financial assist or financial hardship, you should be able to find the terms

and conditions applicable to you.

If you need help, use the contact page to get in touch with us. 

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