As Kiwis continue to self-isolate to help stop the spread of COVID-19, some might be having difficulty keeping up with their regular mortgage repayments.
However, the government and banks have announced new options to help those experiencing financial hardship to stay on track. Here’s what you need to know.
One of the more popular features is the option to defer payments on your home loan for a period of time.
Depending on your circumstances, you may be eligible to pause payments for up to six months.
While this can be a helpful option for those experiencing financial difficulty, it’s worth noting that interest will continue to accrue during this period and will be payable across your loan term.
Switch to interest-only
If you are currently making principal and interest payments on your mortgage, you may be able to switch to interest-only payments.
Interest-only payments mean that you are only paying the interest accruing on the loan rather than paying off your property.
This may be a more affordable option to help you through this unprecedented time.
Talk to an expert
Given the uncertain nature of the situation, it’s important to seek expert advice before making any decisions.
A Mike Pero Mortgage Adviser can help you review your situation and find a financial solution for your individual circumstances.
To find out more about your mortgage options, contact your local Mike Pero Mortgage Adviser today.