Buying guide
Mortgage holidays: Can I take one and what will it cost me?
In some cases you may be able to take a break from mortgage repayments. Here’s everything you need to know.
AI summary
A mortgage holiday is a temporary break from repayments for up to six months, designed for those facing financial hardship. It should be a last resort as interest still accrues, increasing your total loan balance and leading to higher future repayments.
Before applying, consider less costly alternatives:
- Making interest-only payments
- Extending your loan term
- Consolidating other high-interest debt
Plan for when repayments resume and consider seeking free, confidential advice from organisations like Money Talks.
What is a mortgage holiday?
Applying for a mortgage holiday in NZ: Two steps
A mortgage holiday will increase the overall cost of your loan
Everybody needs a break every now and then.
How much more could a mortgage holiday cost me?
Example of mortgage holiday extra costs
Alternatives to a mortgage holiday
Reducing your mortgage repayments to a manageable level
Making interest only payments
Extend your loan term temporarily
Consolidate high interest loans
Refinance and get cash back
When something unexpected happens there is help available to make sure you can keep your home.
Making a plan for when your mortgage holiday ends
Get free financial advice
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