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 offers a temporary break from home loan repayments for up to six months during financial hardship. It should be a last resort, as interest still accrues during the break, increasing your total loan balance and overall cost. Your repayments will likely be higher when they resume.
Before applying, consider alternatives like reducing payments, switching to interest-only, or extending your loan term. For free, confidential financial advice, you can contact 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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