Buying guide
What happens if I can’t pay my mortgage?
Struggling to pay your bills? You have options. Here's a list of 11 things to do if you can’t pay your mortgage.
AI summary
If you're struggling with mortgage repayments, the most crucial step is to talk to your lender immediately. Proactive communication can help you avoid default penalties and explore solutions to keep your home.
Your bank may offer several options, including:
- Switching to interest-only payments
- A temporary repayment holiday
- Restructuring your loan term
You can also seek free advice from services like MoneyTalks or consider a Kiwisaver hardship withdrawal. A mortgagee sale is a rare last resort.
11 things to try if you can’t pay your mortgage
1. Take a close look at your finances
2. Get a little help
3. Talk to your lender right away
Your lender will suggest options to help reduce your repayments.
4. Request financial hardship assistance
5. Reduce your repayments
6. Switch to interest only
7. Use funds in your home loan
8. Restructure your loan
9. Try a repayment holiday or loan payment deferral
10. Check your insurance
If you're struggling to pay your mortgage there is help available.
11. Consider a Kiwisaver hardship withdrawal
What if I still can’t make repayments on my mortgage?
Stay calm and seek help
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