One late payment and repeated missed repayments tell different stories. Check what is recorded, what remains overdue and whether the cause has been addressed before refinancing.
Prepared for Reduce My Repayments by Monet Finance · Updated 6 October 2026 · General information for Australian homeowners
Identify which account and which payment
Match the report against the actual statements. Note the due date, payment date, required amount and any unpaid balance carried forward. A payment can reach an account after its due date even if you intended to pay on time.
Look for recurring causes: pay arrives after the direct debit, an old account is overlooked, an annual expense absorbs the buffer, or the household cannot meet its commitments. These call for different solutions. Do not describe an affordability problem as simply an administration error.
Assess the sequence, not just a single month
Review mortgage, card and loan statements together. One missed debit following a bank-account change is different from a sequence of missed payments across several accounts. A catch-up payment is useful evidence, but it does not alone show the next instalment is affordable.
An assessor may ask for an explanation and recent account conduct. There is no universal number of clean months that guarantees approval. Ask about the proposed lender’s current requirements before submitting an application.
A timing problem may have a simpler solution
Imagine an invented household paid monthly on the 28th, with three direct debits due on the 25th. Moving due dates, keeping an account buffer or separating bill money may reduce failed payments without refinancing. Check whether creditors can accommodate a change and whether interest or fees are affected.
If income remains below essential costs and debt repayments after the dates are aligned, changing the calendar will not solve the shortfall. Contact lenders about assistance and obtain a realistic budget before taking on a new secured loan.
Explain what changed with evidence
Keep the explanation brief and specific: the event, dates, affected account, resolution and prevention. Include documents that support it rather than making a general promise that payments will improve. Examples include confirmation of a changed debit date, a new employment contract or statements showing arrears cleared.
A hardship arrangement should be identified as an agreed arrangement. Ask the lender how repayments are due under it and confirm how the account is reported. Do not assume every payment pause is an unapproved missed payment.
Compare consolidation with fixing the payment system
Fewer repayments can make administration easier, but the consolidated instalment still needs to be funded on time. A separate loan split, bill account and scheduled transfer may help maintain visibility after settlement.
If the proposed mortgage repayment leaves no margin for ordinary surprises, simplification alone is not enough. Consider whether a shorter debt term, smaller consolidation amount or direct arrangements with existing creditors would be more workable.
What to prepare
- Statements showing due and payment dates
- A timeline of missed and catch-up payments
- Evidence of any agreed arrangement and the changes made
Your questions answered
Does one late payment mean I cannot refinance?
Not necessarily. The account, timing, explanation, lender policy and current finances all matter.
Is catching up enough?
It resolves arrears, but the next repayment still needs to fit the budget.
Should I explain a changed payday?
Yes. Show the dates, how payments were affected and how the timing has been fixed.