A change in job or unexpected costs can sometimes affect your ability to make home loan repayments at the same rate. There are a few temporary options designed to help you in these situations. The best thing you can do is talk to your bank early to understand what your options are.
Restructuring your loan to interest only
It might be possible to restructure your loan so you are only paying the interest portion for a period of time. Your loan principal won’t reduce, but your payments will be lower for that period. It’s important to note you will still have to repay the loan over the documented term so your repayments will be higher after the interest only period ends.
A mortgage holiday* gives you time off from your repayments, and is best considered as the last option for help. You can take a mortgage holiday of up to three months once every two years. During this time, you don’t need to make repayments but you will continue to accrue interest on the loan. When you come off the mortgage holiday, it’s important to remember that your repayments will be increased to accommodate for the break of repayments for the life of the loan.
*Only available on BNZ Standard, Fly Buys and Classic home loans.
Changing your repayments
We can work with you to restructure your loan to reduce your minimum repayments. Pop in store or give us a call on 0800 275 269 and we can look at your repayments and see if we can adjust them to suit your current situation.
If you are experiencing financial hardship, there are options available to you. Find out more here.