Script library · Australia · November 2026
If the RBA's fifth hike of 2026 has pushed your mortgage past what your budget can carry, you can ask your lender for a hardship variation before you miss a single payment. Contact the hardship team, say the word "hardship", explain why and for how long, and name what you can afford: ASIC's Moneysmart says the lender must then reply in writing within 21 days. The eight scripts below give you the exact words for every stage, from the first call to the complaint.
4.85%
RBA cash rate after the 3 Nov 2026 hike, the fifth this year
+$584
extra a month on a $731,000 loan since January (Compare the Market estimate)
187,905
calls and chats to the National Debt Helpline in the year to August 2026
Why this month is the moment to call, not next month
On Melbourne Cup Day the Reserve Bank lifted the cash rate from 4.60% to 4.85%, its fifth 0.25-point rise of 2026 and a cumulative 1.25 points since February, as Savings.com.au reported. The board was split six to three, and the RBA's November 2026 Statement on Monetary Policy landed the same day. The next board meeting is on 7–8 December.
The squeeze is already visible. In a Canstar survey of 1,012 adults cited by Australian Broker News, 10% of mortgage holders said they could not meet higher repayments and another 28% said it would be a struggle. The ABC reported that mortgage stress now accounts for roughly 14–15% of National Debt Helpline callers, up from about 10–11%, and that more than four in 10 callers have a paid job. This is not a problem limited to people who have lost work. It's a maths problem landing on working households.
Here's the part most articles skip: the hike doesn't hit your account the day after Cup Day. Broker News reported the big four were expected to pass it on from 13 November and Macquarie from 19 November, and borrowers typically get notice before repayments change. That gap is your window. A hardship request made while you are still up to date is a request from a position of strength.
What five hikes did to three common loan sizes
We ran the repayment maths on principal-and-interest loans with 25 years left. The "now" rate is the 6.74% average owner-occupier variable rate reported after the November hike; the "January" rate assumes the full 1.25 points of 2026 hikes were passed on (6.74% − 1.25% = 5.49%). The last column shows what a borrower on an older "back-book" rate of 7.34% would save by reaching the lowest advertised variable rate of 6.18%, both figures from the same Broker News report.
| Loan balance | January (5.49%) | Now (6.74%) | Extra per month | 7.34% → 6.18% saving |
|---|---|---|---|---|
| $400,000 | $2,454 | $2,761 | +$307 | $293/month |
| $600,000 | $3,681 | $4,142 | +$461 | $440/month |
| $800,000 | $4,908 | $5,522 | +$614 | $586/month |
Our calculation, monthly principal-and-interest repayments, 25-year remaining term. Your rate, balance and term will differ; use your latest statement.
Look at that last column next to the "extra" column. For a borrower stuck on a back-book rate, a rate review can claw back almost the whole cost of 2026's hikes. That's why Script 1 isn't a hardship script at all.
Which conversation do you need? Match your situation first
| If this is you… | Start with |
|---|---|
| Repayments are tight but you're on time, and your rate is above 6.5% | Script 1 (rate review) |
| You can see a shortfall coming within 1–3 months | Scripts 2 and 3 (hardship request + follow-up in writing) |
| The pressure is temporary: reduced hours, parental leave, illness, a separation | Script 4 (temporary reduction or pause) |
| The new repayment will never fit your income | Script 5 (longer term) and a financial counsellor |
| You share the loan with a partner or ex | Script 6 (the home conversation) |
| You already got a default notice, or no reply in 21 days | Scripts 7 and 8 (escalation, AFCA) |
The 8 scripts
Each one has the situation, the words, and what to do if the answer is no. Keep a notebook beside the phone. Write the date, the time, the name of the person and any reference number for every contact.
Script 1 · The rate review (before any hardship)
When: you're still paying on time and your variable rate is well above the advertised rates for new customers.
"Hi, I've had this home loan for [X] years and I'm currently paying [rate]%. Your advertised rate for new borrowers with my loan size is [rate]%. I'd like you to review my rate today. I'm comparing refinance options this week, but I'd prefer to stay if you can get closer to what new customers pay. Can you put that request in now and tell me when I'll hear back?"
If they say no: ask, "Is there a retention team I can speak with?" Then get a refinance quote in writing. Canstar's example in Broker News found that moving a $600,000 loan with 25 years left from 7.34% to 6.49% could save just over $9,000 over two years, against about $1,150 in switching costs. Refinancing usually needs a fresh credit assessment, so do it before money gets tighter, not after.
Script 2 · The first hardship call
When: you can see you won't meet the new repayment. You don't need to have missed one yet. Ask for the hardship team rather than general enquiries.
"I'm calling because I'm experiencing financial hardship and I want to apply for a hardship variation on my home loan, account [number]. My repayment is [amount] a [fortnight/month]. Since the rate rises, and because [reason: reduced hours / separation / illness / caring for a parent], I can realistically pay [amount] for about [number] months. I'd like you to record this call as a hardship notice and tell me what you need from me."
Why these words work: they match what Moneysmart tells borrowers to include: your loan details, your current repayment, the reason, how long it's likely to last and what you can afford. Lenders have had a strong reason to treat the word "hardship" seriously. In August 2025 the Federal Court ordered NAB to pay a $15.5 million penalty over failures to respond to hardship notices within the legal timeframe, as noted in ASIC's September 2025 hardship release. If they say no on the call: "Please send me that decision and the reason in writing."
Script 3 · The email that starts the 21-day clock
When: the same day as Script 2. A phone call counts, but a written request leaves no room for "we have no record of that".
"Subject: Hardship notice – home loan [account number]
Following my call today with [name] at [time], I'm confirming in writing that I'm experiencing financial hardship and request a variation to my home loan. Current repayment: [amount]. Reason: [one or two sentences]. Expected duration: [months]. What I can afford: [amount] per [period]. I've attached a summary of my income and expenses. Please confirm receipt and reply with your decision in writing."
If they ask for more information: send it promptly. Moneysmart says the lender has 21 days from when you provide requested information to give you an answer. Send only what they ask for; ASIC's reviews found lenders have been told to stop demanding large amounts of documents by default.
Script 4 · Asking for a specific, temporary fix
When: the gap is temporary and you know roughly when it ends.
"I'm asking for interest-only repayments for three months, until [date], when [my hours go back up / my leave ends / the property settlement is done]. Before I agree, can you tell me in writing what my repayment will be when the arrangement ends, how much extra interest I'll pay overall, and how the arrangement will be reported to credit reporting bodies?"
Know the trade-off before you ask. Moneysmart lists changing the loan terms, or temporarily pausing or reducing repayments, as options. On our $600,000 example at 6.74%, interest-only cuts the monthly repayment from $4,142 to about $3,370, a $772 breathing space, but you'd repay roughly $2,315 less principal over three months. A full three-month pause is costlier: about $10,167 of interest is added to the balance, and the repayment afterwards rises to roughly $4,228 a month on the remaining term. The OAIC explains that lenders report a hardship arrangement to credit reporting bodies as "financial hardship information", so ask the question in the script, and weigh it against the far worse record a default leaves.
Script 5 · When the gap is permanent
When: you've done the budget twice and the new repayment won't fit, even with cuts.
"I don't think this is temporary. I'd like you to assess extending my loan term to bring the repayment down to [amount]. I'm also speaking with a free financial counsellor, and I'd like them to be able to talk to you on my behalf if I give written authority. What form do you need for that?"
If extension won't close the gap: this is the point to call the National Debt Helpline on 1800 007 007 before you decide anything about selling. A counsellor can look at every debt together. It's free, and you are not the only one ringing: calls and chats reached 187,905 in the year to August 2026, up 11.76% on the year before, according to the ABC.
Script 6 · The kitchen-table conversation
When: the loan is joint, or the person you share bills with doesn't know how close it is.
"I've run our numbers after the rate rise and I need us to look at them together, not to blame anyone, just so neither of us is carrying it alone. From [month], the mortgage goes up by about [amount]. I want to call the bank this week. Can we sit down on [day] for 30 minutes with the last two statements and decide what we're asking for?"
If they say "it'll be fine": "It might be. I'd still like to ask before we're behind, because we have more options now than after a missed payment." If you're separated and the ex won't engage, tell the lender in Script 2. Both borrowers stay liable on a joint loan, and the lender needs to know the full picture.
Script 7 · No reply, or a default notice arrives
When: 21 days have passed without a written decision, or a default notice has arrived. Moneysmart says a default notice gives you 30 days to pay the missed amounts plus your regular repayment, so don't wait.
"I lodged a hardship notice on [date], reference [number]. I haven't received a written decision. I'm asking you to escalate this to your internal dispute resolution team today and to hold any enforcement action while my request is assessed. Please confirm in writing."
If they say no: ask for the decision and reason in writing (Moneysmart says a refusal must come with a reason), then go to Script 8.
Script 8 · The AFCA complaint
When: internal dispute resolution hasn't fixed it. The Australian Financial Complaints Authority is free and independent.
"I applied for a hardship variation on [date]. My lender [didn't respond within 21 days / refused without considering my circumstances / offered an arrangement I can't meet]. I've attached my request, their response and my budget. I'm asking for a fair assessment of a repayment arrangement of [amount] for [months]."
You won't be the first: AFCA's 2025–26 Annual Review recorded 119,949 complaints, with home loan complaints up 21% to 7,014 and financial difficulty complaints up 17%, as MPA reported in October 2026.
"The person most likely to get a workable arrangement is not the one with the worst story. It's the one who rings first, asks in writing and names a number."
Before you dial: the 20-minute prep sheet
The calls go better when the numbers are already on paper. Fill this in first:
- Your loan: account number, balance, current rate, repayment amount and date of the next increase.
- Take-home income: monthly, for everyone on the loan. Note anything temporary (leave, reduced hours).
- Essential costs: rent or strata, power, food, transport, childcare, insurance, minimum debt payments.
- Your realistic repayment: income minus essentials, minus a small buffer. This is the number you say out loud.
- Your time frame: when you expect things to change, and why.
If just opening the banking app makes your chest tighten, that's normal, and it's worth handling before the call. The Matriarch's Money Brain Workbook walks you through why money conversations trigger that freeze and how to get your numbers down calmly, so you go into Script 2 steady rather than apologetic. Start lighter with the free 7-Day Money Anxiety Reset journal if you need a gentler first step.
Three things lenders won't volunteer
1. You can ask before you're behind. Moneysmart's guidance is built around contacting your lender as soon as you know you'll have trouble. Banks report doing this at scale: the ABC noted Westpac offered 42,000 hardship and disaster relief packages during the year and Commonwealth Bank more than 147,000 tailored payment arrangements.
2. "We can't help" isn't the end. A refusal needs a reason, and you can take it to internal dispute resolution and then AFCA.
3. Arrangements cost money later. Paused interest doesn't disappear. Ask for the end-of-arrangement repayment in writing every time (Script 4).
Quick answers
Do I have to miss a payment to apply for hardship?
No. Moneysmart tells borrowers to contact their lender's hardship team as soon as they know they'll struggle.
How long does my lender have to respond?
Moneysmart says lenders must write to you within 21 days with the outcome, or within 21 days of receiving extra information they asked for.
Will a hardship arrangement show on my credit report?
Lenders must report a hardship arrangement as "financial hardship information", according to the OAIC. Ask your lender exactly how it will appear before you agree.
Who can help for free?
The National Debt Helpline (1800 007 007) connects you with a free financial counsellor, and AFCA handles complaints at no cost to you.
Keep reading
- What the RBA's move to 4.85% means for your repayment before 8 December
- Why consumer sentiment just fell to 78.2, and what it says about mortgage stress
- Emergency funds in Australia: why 1 in 6 can't last a week
- If you rent instead: 6 scripts before you accept a rent increase
- Hardship scripts for utilities, hospitals and other lenders
- Across the Tasman: three New Zealand women run the rent-or-buy numbers in a falling market
Sources
- Problems paying your mortgage, ASIC Moneysmart (Australia), accessed November 2026.
- Statement on Monetary Policy, November 2026, Reserve Bank of Australia, 2026.
- 25-216MR: ASIC urges ongoing customer focus on hardship support, ASIC, 2025.
- What is a financial hardship arrangement?, Office of the Australian Information Commissioner, accessed 2026.
- Interest rate hikes putting more pressure on already stressed households, ABC News, 4 November 2026.
- RBA lifts cash rate to 4.85%, Savings.com.au, 3 November 2026.
- Fifth RBA increase ends sub-6% variable rates as borrower stress mounts, Australian Broker News, November 2026.
- Race to quell inflation as interest rate hike lifts mortgage bills, Compare the Market, 3 November 2026.
- Home loan complaints rise 21% as total disputes hit record, MPA Australia (reporting AFCA Annual Review 2025–26), 23 October 2026.
Educational content only. Not personalised financial advice.