In October 2008 the government guaranteed retail banking deposits to prevent a meltdown similar to those happening in U.S. banks. Good in other ways, the guarantee had the unfortunate effect of making the retail banks more attractive to investors than mortgage funds, leading to fears of a massive exodus and collapse of the market.

To prevent this scenario from playing out, the Australian Securities & Investments Commission froze mortgage funds, limiting investors to a single withdrawal of $20,000 plus half of their remaining interest. However, this limitation has caused hardship among certain investors.

Now, a recent ruling, fast-tracked by the ASIC, allows investors suffering financial hardship to withdraw up to $100,000 of their funds, accessible in four withdrawals spaced over a twelve-month period. This relief is intended to assist in unusual circumstances, including those suffering lengthy unemployment or the beneficiaries of estates.

Under the new rules, hardship payments may be made within seven days.

Source: The Australian