How the banks can help
Here’s how the banks are helping those financially effected by loss of income during the Covid-19 pandemic
Talk to your mortgage adviser before you get in touch with your bank to get better clarity and to better prepare yourself. Think about your cash flow budget for the months ahead and consider your options well. We are here to help and every individual has unique circumstances. It’s always good to talk through your needs and the options first.
Please note (as at 31/03/2020):
- At this stage Eightfold as mortgage advisers can assist with applications on behalf of ANZ, BNZ and Westpac clients, with the other banks asking clients to go direct as detailed below. We are still here to talk to anyone, anytime regardless of bank.
- ANZ has now finalised its 6 month payment deferral program, and you can apply for this via your Eightfold adviser.
- ANZ is working on a simplified process for clients going on to interest only and will provide more detail soon.
- Westpac now has a simplified process for clients going on to interest only.
The Options
Eightfold published a blog on 23rd March which we have updated post the Government announcements around bank assistance. Read blog here.
We’ve cover the high-level communications from the banks below around Home Loans but you’ll also find help around personal and business loans on these pages.
ANZ will soon be able to offer home loan repayment deferrals, which will allow you to pause your repayments for up to 6 months (sometimes known as “mortgage repayment holidays”).
Home loan repayment deferrals aren’t available just yet, but will be early next week.
Click on the link below to see ANZ’s full information on home loan hardship and to book a call back from ANZ once they are ready to go. https://www.anz.co.nz/here-to-help/banking-updates/
ASB has assistance ready to go now. You can apply directly online under the two categories set out below.
If your income has been impacted by COVID-19:
- Interest only repayments on home loans for up to 6 months
- Mortgage repayment deferral for up to 6 months (interest will still be added to the loan, meaning your loan balance will increase)
- Interest only and repayment deferral options for personal loan customers
If you have been impacted by any other COVID-19 related reason:
- Interest only repayments on home loans for up to 3 months
- Mortgage repayment deferral for up to 3 months (interest will still be added to the loan, meaning your loan balance will increase)
- Interest only and repayment deferral options for personal loan customers
Click on the following link for full information about applying for support: https://www.asb.co.nz/page/covid-19.html#how-we-can-help-you
At BNZ you could be eligible for a home loan repayment deferral for up to six months, or ‘interest only’ payments for up to 12 months, if your income has been affected by COVID-19.
You can apply directly online through their application link. https://www.bnz.co.nz/contact/covid-19-update/covid19-home-loan-repayment-deferral
Click on the following link for full information about applying for support: https://www.bnz.co.nz/contact/covid-19-update#hl
Co-operative Bank as offering the following hardship services for those effected by Covid-19:
- Defer your Home Loan repayments for up to six months with a repayment holiday.
- Consider paying interest only on your Home Loan if your income is reduced.
- Adjust your Home Loan or Personal Loan repayments down to the minimum amount.
Click on the following link for full information about applying for support: https://www.co-operativebank.co.nz/help/covid-19
If you’re an existing Kiwibank Home Loan customer and need relief from your home loan commitments they have several options available depending on your circumstances.
- Extension of home loan term – This temporary extension can be reduced back once income returns to normal
- Interest Only home loan payments – For a period up to six months
- Home loan repayment deferral – Full principle and interest deferral for up to six months.
Click on the following link for full information about applying for support: https://www.kiwibank.co.nz/contact-us/support-hub/coronavirus-updates/updates-products-and-services/#home-loans
In response to the Government’s announcement, TSB will be offering support to customers by:
- Offering ‘Interest Only’ payments for up to six months
- Offering a ‘Mortgage Payment Deferral’ for up to six months
Click on the following link for full information about applying for support: https://www.tsb.co.nz/help/covid-19/mortgage-repayment-deferral
Deferred mortgage repayments are available for six months, as agreed by the Government and banks. This deferral includes principal and interest repayments and is sometimes known as a mortgage holiday. Any interest accrued during the deferral period will be added to your loan.
Requests a six month mortgage and personal loan repayment deferrals. You have several options:
- If you have a mortgage advisor (broker) please contact them directly and they will be able to assist you.
- Alternatively, please call 0800 606 606 to speak to our contact centre. We are experiencing high call volumes, so please call us next week if your repayment is not due in the next 5 days.
- We are also working on an online application form that customers will be able to fill out themselves to apply for a deferral. This should be available in the near future. Please check back here regularly if you would like to use this form.
Request Interest Only:
We expect to have a similar simplified process available in the next few days and we will provide you with these details as soon as possible.
Click on the following link for full information about applying for support: https://www.westpac.co.nz/who-we-are/covid-19/financial-support/