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If you are unable to meet your loan repayments, we are here to support you and get the help you need to overcome any financial difficulty or hardship you may be experiencing.
It is a good idea to reach out as soon as you identify there may be a problem so we can act quickly and reduce the impact.
Whether your financial difficulty is short term or continuing, it is important to understand there are a number of steps we can assist you with.
You can contact your lender directly to discuss your options, such as postponing certain repayments, changing your loan term, or varying your credit contract. The lender will assess hardship applications on a case-to-case basis, provide access to short-term relief and assist you through your temporary hardship event (these are not long-term solutions).
Alternatively, you can reach out to us and we can walk you through the process including assisting you with your hardship application. We can also reevaluate your circumstances for longer-term solutions.
Understanding your financial circumstances and the cause of the financial difficulty is crucial for us to determine what assistance may be possible and appropriate for you.
We can evaluate your situation to determine the options available to you and point you toward resources that may be useful.
We have over 20 lenders on our panel that may be able to assist you and provide you with a suitable outcome for your situation.
As mortgage advisers we provide essential information and advice to you at a time when understanding appropriate options and making the right decision is critically important.
We are available to meet in person, chat over the phone or via a video call.
This is also known as a mortgage holiday but don’t let the name fool you, this is no holiday. If you’ve been stood down, lost your job and cannot afford to pay mortgage repayments, you have the ability to enact a payment deferral. This is when a lender defers your repayments for a period of time.
Every lender has their own rules and requirements on these payment deferrals. It’s important to know that at some point you will be required to pay the interest that accrued while the loan was deferred. For example, some lenders will add the amount you owe to the end of your loan and some will charge immediately after the payment deferral is off hold.
Also, after the deferral, your balance and your repayments could be higher to make up for the interest accrued deferred repayments.
When a payment deferral on an existing mortgage is activated, it means that a lender will defer your required mortgage repayments for a specific period of time. Although your repayments are deferred, the interest on your loan is still calculated and added to the balance. In effect you’re paying interest on interest.
So, when you recommence repayments your lender will recalculate your repayments so you repay the loan in the original term. This ultimately means your repayments will rise. However, there are options available to refinance after the payment deferral period, which could help to reduce repayments and increase the term of your loan, giving you a bit more flexibility.
First things first, while it’s important to understand what your options are in these difficult times, we urge you not to panic and spend hours on hold to your lender. Your Loan Market adviser can help you navigate and understand what your options are during this time of financial hardship that many Kiwis are facing.
There are a number of reasons you might consider refinancing. These may include:
Lower rates
Interest rates regularly change, as is the case in the current market, so if you have a variable rate or your fixed rate is due to expire, you may be able to negotiate a lower rate with your lender – or find one that will.
More bells, better whistles
Not all home loans are packaged equal. It can be worth looking at features and functionalities to see what could be useful for you. If you aren’t using features with your existing loan, switching to a more basic loan could potentially save you in fees.
Debt consolidation
If you have multiple debts, such as a personal loan, credit card or car loan, you may be able to roll them into your home loan. This consolidates your debt to one repayment and could save you in interest. We will consider the whole picture to determining if debt consolidation is right for you.
Free up money
Whether you need to free up money for a renovation, a new car or have another project in mind, if you have grown equity in your home, you may be able to refinance to access more money to fund it.
Let us know what your goals are and we will connect you with a Loan Market adviser directly.
This calculator can show you how long it will take to pay off your balance.
Calculate how much you car loan repayments could be and the total amount you could pay in interest.
Understand how much money you have coming in compared to what you spend using this calculator to help you identify where you could save.
Send an email to [email protected] to get in touch.
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Company Number: 4313118 | NZ Financial Services Group Limited (FSP286965)
The information provided on this site is on the understanding that it is for illustrative and discussion purposes only. Whilst all care and attention is taken in its preparation any party seeking to rely on its content or otherwise should make their own enquiries and research to ensure its relevance to your specific personal and business requirements and circumstances. Terms, conditions, fees and charges may apply. Normal lending criteria apply. Rates subject to change. Approved applicants only.
*Your adviser may charge a fee to cover additional time required by their team. Any fees will be discussed with you in advance so you can make an informed decision before proceeding with your application.
