Before you miss a payment
Banks say the same thing again and again: contact them early. BNZ warns that if you leave it too long you may not qualify, and that more time gives you more options. The legal rights and what a lender must do with a hardship application are in the guide on talking to your bank, so they aren't repeated here.
- Work out how much you can pay in the next 3 to 6 months. Use the emergency budget and Money Runway tool.
- Check help from Work and Income. If you rent or have a mortgage, the Accommodation Supplement may help, and Temporary Additional Support covers essential costs.
- Ring MoneyTalks (0800 345 123, text 4029) for a free, independent look at your options before you commit to any plan.
- Contact your lender's hardship team (see below) and ask in writing what they can offer.
- Keep paying what you can in the meantime, and keep notes of every call.
What the banks publish
We checked the banks' own hardship pages on 27 October 2026. Details change, so confirm the current process, numbers and hours with your bank.
| Bank | What they say | Contact (as published) |
|---|---|---|
| ANZ | If you meet its hardship criteria (examples: job loss, serious illness, relationship breakdown), you may be eligible for financial hardship assistance. Home loan options include restructuring (such as a longer term or a short period of interest-only), which may change the total you repay and may incur a fee, and consolidating ANZ debts into one personal loan, depending on your circumstances. Check any life or income insurance linked to your loan. | Home loan restructure 0800 269 4663; loan in arrears 0800 731 200 |
| ASB | Its Financial Assistance team helps people who've had a recent, unexpected event that affects their ability to meet ongoing commitments, and lists 'Redundancy, loss of job or reduced income'. Its Credit Solutions team can arrange repayments for home loans, personal loans, overdrafts and credit cards. It also points to budgeting services and calls insolvency a last resort. | Financial Assistance 0800 27 27 35 option 3, 8.30am to 5.00pm weekdays, financialassistance@asb.co.nz; Credit Solutions 0800 27 27 28 |
| BNZ | BNZ customers may be able to apply for a hardship variation, a change to loan conditions such as extending the term or a payment deferral. Interest still builds during a deferral. You can reduce repayments to the minimum if you've been paying more, but not below the minimum or the amount needed to clear the loan by its end date. Early repayment charges may apply. | Use the 'get in touch' page on bnz.co.nz. It doesn't publish a number on the page we checked. |
| Kiwibank | Options include affordable repayment plans, interest-only repayments, a longer term, a repayment deferral, restructuring or switching to a more suitable product. It is free to apply. After you apply you'll get a form about your finances, and decisions are case by case. Kiwibank says hardship assistance may appear on your credit reporting history. | Home loans 0800 222 497, Mon to Fri 8am to 5pm |
| Westpac | We couldn't read Westpac's hardship page when checking. Look at westpac.co.nz for its current financial hardship process and contact details. | Check westpac.co.nz |
We didn't find an industry-wide hardship promise from the NZ Banking Association, so what you can expect depends on your own bank's process. If your bank isn't listed, search its website for 'financial hardship' or ask which team deals with it.
Mortgage options and what each costs
| Option | How it helps | The catch |
|---|---|---|
| Longer loan term | Spreads the debt over more years so repayments fall. | You pay interest for longer. Ask for the new repayment and total cost in writing. |
| Payment deferral (holiday) | Frees up cash for a set period. | Interest still builds during a deferral (BNZ says so) and is added to what you owe. |
| Interest-only for a period | Lowers repayments while you search for work. | Sorted says interest-only mortgages ultimately cost more, usually run for a set period before switching back, and have strict lending criteria. Your debt isn't reduced meanwhile. |
| Reduce repayments to the minimum | Immediate if you've been paying extra. | Can't go below the minimum payable, and the loan still has to be cleared by its end date. |
| Restructure or switch product | A different mix of fixed and floating, or a different loan type, may suit your income. | May involve a fee (ANZ says so) or a break fee on a fixed rate. See below. |
| Debt consolidation | One repayment instead of several. | ANZ says whether this is possible for a loan in arrears depends on your circumstances. Check the interest rate and the term of the new loan. |
| Insurance claim | Some life or income cover linked to a loan can pay out. | Check policy terms and exclusions. See the insurance review guide. |
Fixed rates, floating rates and break fees
- Sorted describes a fixed rate as locked in for six months to five years 'unless you pay a break fee'. A break fee is a charge for ending a fixed-rate mortgage early, and Sorted says it can be 'pretty hefty' and can apply if you sell or refix mid-term. Ask your lender for the dollar figure in writing before you change anything.
- Floating (variable) loans let you pay off early or change the term more flexibly without penalty, according to Sorted, but floating rates have historically been higher than fixed rates.
- You can split a loan into fixed and floating parts. Sorted notes the floating part lets you make extra repayments without a charge.
- Moving from fixed to floating mid-term may trigger a break fee on the fixed portion. If your fixed term ends soon, ask what your options are at rollover.
Selling the home: your choice or the lender's
If you can't see a way to keep the loan going, tell your lender and consider a planned sale before arrears build up. Selling by choice lets you pick the timing, the agent and the price. A sale the lender forces after a default is often called a mortgagee sale, and gives you much less control. Free legal advice from a Community Law Centre or the Citizens Advice Bureau, and MoneyTalks, can explain the process for your situation. If a fixed rate is running, ask about the break fee before you list.
See the selling assets guide for general tips on selling to raise cash.
After you agree a plan
- Get the agreement in writing, including the new repayment amounts, dates, fees and how long the arrangement lasts.
- Diarise the end date and what happens then. Banks usually expect a review or a return to normal repayments.
- Ask how it will be recorded on your credit file. Kiwibank says hardship assistance may appear on your credit reporting history.
- If you disagree with a decision, ask for reasons in writing, use the bank's complaints process, then the dispute resolution scheme the bank belongs to. See the guide on advisers and complaints.
- If your income returns, tell the bank and ask to move back to your normal terms.
Sources
- ANZ: Help with financial difficulty (opens in a new tab)
- ASB: Financial hardship assistance (opens in a new tab)
- BNZ: Trouble with home loan repayments (opens in a new tab)
- Kiwibank: Financial hardship and assistance (opens in a new tab)
- Sorted: Types of mortgages (opens in a new tab)
- Work and Income: Accommodation Supplement (opens in a new tab)
- FinCap: MoneyTalks free financial helpline (opens in a new tab)
General information only. Confirm with the agency for your situation. Spotted something out of date? Email help@unemployed.nz.