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What you can do if you’re having trouble with home loan repayments
Running into financial challenges can make it difficult to keep up with home loan repayments. Here are some options that could take some of the pressure off.
4 minute read
Since your home loan is probably your biggest regular expense, if you’re struggling with your repayments, it’s good to know what your options are.
Reducing your outgoings can help with getting through a period of financial difficulty. Knowing where you can reduce those outgoings is a key step towards managing any money problems that arise.
Understanding where your money is going and getting in control of your day-to-day finances is important, especially if you need to talk to the bank or other lenders about options. This could help you to understand how much you can realistically afford to repay each week, fortnight, or month. To help work that out, use our home loan repayment calculator1.
If you need it, there’s free budgeting information at Money Talks or Sorted. Money Talks is an independent and confidential service which is completely free. The financial mentors can help you with confidential advice, and talk you through your options for getting on top of debts and covering the essentials.
Consider reducing your repayments
If you’ve been paying more than the minimum required payment on your home loan, you could reduce your repayments to that minimum level and free up some money to pay for other essentials.
If you’re a BNZ customer2, you may be able to make this change using Internet Banking or the BNZ app. Once you’re logged in, click on your home loan account. If you see a ‘Change your regular repayments’ button, then you’ll know you can, otherwise you’ll need to get in touch with us.
Talk to your bank about your options
If you’re a BNZ customer and you’re having difficulty managing your home loan repayments, you may be able to apply for a variation to your loan on the basis of financial hardship. This is a change to your loan conditions, which may include extending the term of your loan and/or a payment deferral period (a period during which you don't need to make any payments, but interest will continue to accrue and be added to your loan).
To get a clearer idea of the option that could work best for your situation, your bank is always there to have an open and understanding conversation. The sooner you get in touch with your bank, the more time you’ll have to make the best possible choice. We’ve also got more information on ways to manage financial difficulty.
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1Calculations are indicative only. T&Cs apply.
2Available for most BNZ home loans. Repayments must be enough to repay your loan by your loan's end date. You can't reduce your repayments below the minimum amount payable on your home loan. Early repayment charges may apply.
Credit, lending, and other criteria, terms and fees apply depending on the type of help required.
Internet access required for Internet Banking and the BNZ app. BNZ Internet Banking T&Cs apply. Maintenance sometimes required.
This article is solely for information purposes. It’s not financial or other professional advice. For help, please contact BNZ or your professional adviser. No party, including BNZ, is liable for direct or indirect loss or damage resulting from the content of this article.
References to third party websites are provided for your convenience only. BNZ accepts no responsibility for the availability or content of such websites.