How to Make a Mortgage Complaint in Australia (2026)
If you have a dispute with your home loan lender — over fees charged incorrectly, hardship applications refused unfairly, misleading information, or any other issue — there is a clear, free process to escalate your complaint. You do not need a lawyer to make a complaint.
Step 1 — Internal Dispute Resolution (IDR)
Your first step is always to raise the complaint directly with your lender. All Australian lenders are required under ASIC Regulatory Guide 271 (RG 271) to have a formal Internal Dispute Resolution (IDR) process.
How to make an IDR complaint:
- Contact your lender’s complaints team directly (not just your relationship manager)
- Put it in writing (email or letter) — creates a paper trail
- Clearly state: the issue, the outcome you are seeking, your account details
- Keep copies of all communications
Lender IDR response timeframes (ASIC requirements):
- Lenders must acknowledge your complaint within 24 hours (business hours)
- Lenders must respond to most complaints within 30 calendar days
- Complaints about financial hardship or credit decisions: 21 days
If not resolved within the timeframe: You can escalate to AFCA.
Step 2 — Australian Financial Complaints Authority (AFCA)
If your IDR complaint is:
- Not resolved within the required timeframe
- Resolved but you are not satisfied with the outcome
You can escalate to AFCA — the Australian Financial Complaints Authority.
AFCA is:
- Free for consumers
- Independent of lenders and government
- Has binding authority over AFCA member organisations (all major lenders and brokers are members)
- Can award compensation up to $1,232,800 for home loan disputes (current limits; check AFCA website for updated caps)
How to lodge with AFCA:
- Online at afca.org.au
- Phone: 1800 931 678
- You need to have completed the IDR process first (AFCA will check)
What AFCA can help with:
- Incorrect fees or interest charges
- Refusal of a hardship application
- Misleading or inappropriate loan advice
- Maladministration in loan processing
- Default notices issued incorrectly
- Mortgage broker misconduct
Step 3 — Reporting to Regulators
AFCA resolves individual disputes. If you believe a lender or broker has engaged in systemic misconduct or breached their legal obligations, you can also report to:
ASIC (Australian Securities and Investments Commission):
- Handles complaints about misleading conduct, responsible lending failures, and broker misconduct
- Report at asic.gov.au/report
APRA (Australian Prudential Regulation Authority):
- Handles concerns about financial stability or prudential standards of authorised deposit-taking institutions
- Not a consumer complaints body — but relevant for systemic concerns
What to Document
Strong documentation improves the outcome of any complaint:
- ✅ All loan documents (original contract, product disclosure statement)
- ✅ All written communications (emails, letters) with the lender
- ✅ Dates and notes from phone calls (who you spoke to, what was said)
- ✅ Any advertising or representations that were made to you
- ✅ Financial records showing the impact of the issue (overcharging, incorrect statements)
Common Complaint Topics
| Issue | What to seek |
|---|---|
| Incorrect fee or charge | Refund of overcharged amount |
| Hardship application refused | Review of decision; correct process followed |
| Variable rate increased excessively | Explanation and review |
| Misleading loan advice | Compensation for loss caused |
| Default notice issued incorrectly | Withdrawal of notice; credit file correction |
| Failure to disclose fees | Compensation for loss; fee refund |
Frequently Asked Questions
Do I need a lawyer to make a complaint?
No — the IDR and AFCA processes are designed to be accessible without legal representation. AFCA decisions are binding on financial firms. If your complaint involves significant amounts or complex legal issues, legal advice may help — but it is not required.
My lender is ignoring my complaint. What can I do?
After 30 days without a substantive response (21 days for hardship), you are entitled to escalate to AFCA regardless of the IDR status. AFCA will contact the lender on your behalf.
Can AFCA order my lender to change my loan terms?
Yes — AFCA can order a range of remedies including: fee refunds, compensation, changes to loan conditions, correction of credit file entries, and apologies. AFCA determinations are binding on the lender.
Related Guides
- AFCA — Australian Financial Complaints Authority Explained
- How to Complain About a Mortgage Broker
- Mortgage Hardship — What to Do If You Can’t Make Repayments
- Mortgage Complaints Hub
This article provides general information about mortgage complaint processes in Australia. For specific legal advice about your situation, consult a lawyer. Find resources through MoneySmart or contact AFCA directly at afca.org.au.