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Withdrawing super early for mortgage arrears
6 replies to this topic
Posted 19 May 2019 - 12:58 PM
I was wondering if anyone has ever had any experience with this at all. I am seeing a financial coucellor next week hopefully and they could give me advice but I was going to throw it out to EB land anyway. We are unfortunately in a very very bad financial position and have fallen into arrears with our mortgage and pretty much every other debt we have. A redundancy and death in the family has taken a huge toll on our finances and it's a hole I don't see a way out of. Add in crippling depression and anxiety for me since this all happened and I've reached breaking point.
We could get the letter from the mortgage company that the ATO requires to pay the arrears on the mortgage but from what I've been reading it looks like you could be approved for the arrears and 12 months of interest, is that correct?
I know accessing super should be a last resort and believe me it is, I have a plan for the future when things return to normal for us to co-contribute to boost our balance back up. But to be honest I'm more worried right now about keeping a roof over ours and our 4 childrens head than what could happen in 35 years with our super.
Any help or guidance much appreciated
Posted 19 May 2019 - 01:37 PM
Hopefully someone more qualified will share their knowledge, but have you spoken to your bank? You sound like you might possibly fit the definition of a vulnerable customer, and most banks have special rules to try and help people through difficult circumstances.
Posted 19 May 2019 - 02:06 PM
Yes we've already had a financial hardship period with the bank which has finished. This is coming to a head after almost 12 months of trying our best to keep above water. We've no officially sunk. Although I am working now so going forward we should be OK but we are just completely unable to catch up on thousands in arrears on credit card, mortgage, utilities..... You name it we owe them í ½í¸¢í ½í¸¢
Posted 19 May 2019 - 02:13 PM
Yes, you can access up to $10k from your super fund. Just ring up and explain the situation. They will require evidence so have that ready.
Posted 19 May 2019 - 02:23 PM
I have withdrawn from super for medical expenses. In your situation it sounds like it would make sense to do it. The only thing I would suggest is to make plans for next steps to make sure you're not in the same financial position again in the near future. Good luck
Posted 19 May 2019 - 02:27 PM
The amount is not $10,000 - it is the amount you reasonably need.
Please attend your financial counseling appointment.
Someone not so involved in the situation may see things you canâ€™t about a way forward. They may also be able to add in council rates to the mortgage amount or consider whether you meet the illness accessibility.
They should also hopefully be able to advise whose super to access (if there is a choice) as the tax may differ depending on circumstance.
Someone needs to look at whether you can refinance or whether you need to sell to avoid bankruptcy.
I would caution you not to ring your super fund just yet - youâ€™re not going to get a second go at getting it right so definitely get the advice first if you can.
Posted 19 May 2019 - 08:29 PM
Thanks everyone for your advice so far. I will absolutely be attending the appointment with the financial coucellor and I'm hoping they will be able to call my credit card companies and utilities and set up payment plans for us. I just buried my head in the sand because I couldn't cope and I've made everything so much worse. I'm hoping the financial coucellor will help me see a light at the end of the tunnel
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