mortgage payment deferral

PHOTO: Mortgage payment deferral

New Zealand banks are to offer to defer payments on all residential mortgages for up to six months due to people being financially affected by Covid-19.

In a release today, New Zealand Bankers’ Association chief executive Roger Beaumont said it was clear that some people are already affected and have an immediate need for financial relief.

“That’s why the banking industry as a whole is stepping up with this further package,” Mr Beaumont said.

“Anyone opting into a mortgage deferral needs to be clear about what this means for them – while there are obvious advantages for people in need, repayment deferrals may extend the time it takes to repay the loan and will add interest cost.