Where are we at with ANZ?
With ANZ being one of the biggest banks in New Zealand, they have been pretty front and centre for all of this COVID-19 response.
ANZ Options for financial assistance
- Loan Term Extension - If you had an amount a week you felt was manageable to continue paying during this time, extending your loan term (years left to pay off the entire amount of the loan) could be a really good option for you. You can use our calculator here to see what loan terms do to effect your repayments. To check this out, add your loan amount left to be paid, your current interest rate (average if you have a few different interest rates) and try some different loan terms to see how it effects your repayments.
This works best when you are a few years into your loan term. Extending from 26 back to 30 years wont make a huge difference but going from 15 years back to 35 could make a substantial difference.
Note: You can only extend your loan term up until it would be equal to 30 years from the original draw down date and we would look to get you back to your current loan term once things are back to a normal income level.
- Interest Only period - This means you only have to pay the interest on the loan over the next up to 6 months so your loan won't increase but it wont be decreasing either. To work out the cost of this, take your total home loan value, and times that by the interest rate (e.g. 4.15% becomes 0.0415) nd that will give you the interest you would pay over 12 months (approximately). Divide that by 52 to find out how much your weekly payments would be on an interest only period.
- Mortgage Repayment Deferral (previously mortgage repayment holiday) - This means you don’t have to pay anything for the next up to 6 months, but the interest you would have paid over those 6 months will be added to the amount of the mortgage. At the end of the term your loan will increase byu the amount of interest added and as it is added, interest will be charged on that interest. At the end of the period, your minimum repayments would then also increase.
Will this end up costing me more in the long term?
On all of these options you may pay more interest over the lifetime of your loan as the loan term is longer, you will be paying interest for longer or your loan has got larger due to the repayment deferral.
What if my fixed rate expires while I’m on repayment deferral or interest only?
With ANZ, while your loan is on deferred payments, you are still able to re-fix your lending as normal. Reach out to the My Mortgage team and we can help you through this process with the best advice.
What if my situation improves?
If your situation changes you are able to restart your repayments before the end of the loan deferral date, ANZ is more than happy for you to do that.
How can you apply?
If you are interested in any of the options, feel free to reach out to the My Mortgage team and we'd be happy to discuss them with you and, if you are an existing My Mortgage client, we can submit your application on your behalf.
Alternatively, if you're not an existing My Mortgage client, you can go to the ANZ website and request a callback and one of the ANZ team will come back to you within 5 days and get your adjustments put in place.