ADJUST YOUR HOME LOAN PAYMENTS

What you
need to know

If your income has been affected by COVID-19, you can request a change to interest only or a mortgage repayment deferral or an extension of your current COVID-19 financial support. We will need some information from you to support your request and help us understand your position.  

New and extended home loan deferral periods finish March 2021 and requests aren’t guaranteed to be approved – our specialist team will work with you to help you manage your payments to help ensure you’re in the best position moving forward. 

You can request support by completing one of the forms below and we’ll be in touch within five business days to work through your options.
 

REQUEST AN INTEREST ONLY OR MORTGAGE DEFERRAL REQUEST AN EXTENSION

 

 


COMMON QUESTIONS ABOUT

Home loan
support options

 

  • What is the Government’s announcement about interest only and loan repayment deferrals and extending existing Interest Only or Mortgage Payment Deferral?

    On Monday 17 August the Government, along with the Reserve Bank and all retail banks, announced further options to customers financially affected by Covid-19. Customers may be eligible for a new interest only period or loan deferral or an extension to their current interest only or loan deferral up to March 2021.

  • What can TSB offer at this time?

    In response to the Government’s announcement, TSB will still be offering support to customers by: 

    • Offering ‘Interest Only’ payments 
    • Offering ‘Mortgage Payment Deferral’ 
    • Extending existing ‘Interest Only’ payments or ‘Mortgage Payment Deferral’

    It’s important we understand how COVID-19 has financially affected you so we can ensure we consider the most appropriate options for your circumstances. In some cases, this will mean we cannot extend your interest only or mortgage deferral period as this will not be in your best interests. As a responsible lender we are legally required to consider your long-term financial well-being.

  • I’m due to come off my Interest Only or Mortgage Payment Deferral, what are my options?

    We’re still here to help you manage your payments as a result of your income being affected by COVID-19, to help ensure you’re in the best position moving forward. Before your Interest Only/Mortgage Payment Deferral period ends, you’ll receive an email from us reminding you of the date it ends, and that your repayments will return to normal. If you’d like to discuss your options around resuming or increasing your loan payments please contact your local branch, or if your financial situation has not improved, you can request an extension by completing this form. Our specialist team will be in touch within five business days to work through your options.  

  • I’d like an extension on my current Interest Only or Mortgage Payment Deferral, what do I need to do?

    If your income is still affected by COVID-19 you can request an extension to your current interest only or home loan deferral. It’s best to complete this form and our specialist team will get in touch within five business days to discuss the best options for you.

    As a responsible lender, legally we need to consider your long-term financial well-being. It’s important we understand how COVID-19 has financially affected you so we can ensure we consider the most appropriate options for your circumstances. In some cases, this will mean we cannot extend your Interest Only/Mortgage Payment Deferral period as this may not be in your best interests. The team will need some additional information from you to support your request for COVID-19 financial support for your mortgage. 

    Some of the information we may ask you are: 

    • How Covid-19 impacted your income or expenses?
    • How long do you think you will be impacted for?
    • Do you think you will be able to start to pay principal and interest again or what repayments can you afford? 
    • Do you have an insurance policy you may be able to claim under to help? For example redundancy or mortgage protection?
    • Are you aware that income support or other financial support may be available, for example through the Government? See workandincome.govt.nz/covid-19 for details of government support. 
    • Do you have any other funds to draw on during this period e.g. Superannuation, KiwiSaver or other expected income?
  • What if I’ve already come off my Interest Only or Mortgage Payment Deferral can I apply again?

    If your income is still affected by COVID-19 you may qualify for this. Please use our ‘Request a mortgage deferral’ application form to request this. From there, we will be in touch with you within five business days to discuss your options. Requests aren’t guaranteed to be approved.

  • Can I still apply for an Interest Only or Mortgage Payment Deferral?

    Yes, please use our ‘Request a mortgage deferral’ application form to request this. From there, we will be in touch with you within five business days to discuss your options. Requests aren’t guaranteed to be approved.

  • I’m already on a payment deferral, can I get this package?

    Please contact us and we’ll be happy to work with you to assess your needs.  

  • I’m already paying interest only, could I still qualify for this package?

    If your income has been affected by COVID-19, then you could qualify. Please contact us and we’ll be happy to work with you to assess your needs.  

  • What happens if my income returns to normal or I decide I no longer need the Mortgage Payment Deferral, Interest Only or extension?

    If at any time your circumstances change, simply contact us to discuss your options.

  • How long will the special COVID-19 Interest Only or Mortgage Payment Deferral be available for?

    The interest only and payment deferral option has been extended up until March 2021. New and extended loan deferral requests are not guaranteed to be approved. TSB also has existing options for customers experiencing financial hardship and these will continue to be available throughout this time.  

  • Does this package apply to all loans at TSB?

    The Interest Only or Mortgage Payment Deferral offers apply to TSB home loans, we have other options available for qualifying customers with other types of lending. 

  • What are ‘interest only’ payments?

    Interest Only payments are where you only pay the interest, you won’t pay any principal on your loan. This helps to reduce your payments, however your loan balance will stay the same for as long as you are on interest only.  
     
    Due to no principal payments being made while on Interest Only, you will end up paying more over the life of the loan however you’ll pay less overall, than if you deferred your total mortgage payments for this period. 

  • What is a Mortgage Payment Deferral?

    A Mortgage Payment Deferral allows you to take a break from making your contractual mortgage payment for up to six months. Interest will continue to be charged and will be added to your loan at each payment date. 

    The end-result is that you’ll end up paying more over the life of the loan and you may face either increased future payments or a longer loan term, at the end of the payment deferral period. 

  • Remind me about ‘principal and interest’ payments again please?

    When you pay your mortgage, unless you’re already on ‘interest only’, you’re paying both principal and interest, and reducing your loan balance over time. For customers who expect to be paid as normal, you should continue making both principal and interest payments as normal. 

  • A Mortgage Payment Deferral sounds great – but are there any impacts to consider?

    A Mortgage Payment Deferral allows you to take a break from making all of your contractual mortgage payment up to March 2021. However, interest will continue to be charged and will be added to your loan at each payment date. The end-result is that you’ll end up paying more over the life of the loan.  

  • Can I take a shorter payment Interest Only or Mortgage Payment Deferral period than up to March 2021?

    Yes, you can take a payment deferral or opt for interest only for terms less than six months. Talk to us to discuss the best option for you. 

  • What if my loan relates to an investment property, can I still apply?

    Yes. 

  • Will this Interest Only or Mortgage Payment Deferral offer impact my credit rating?

    No, your credit rating will not be impacted by taking this offer. 

High call volumes

Our Customer Contact Centre is very busy at the moment but our team will continue to be available in the coming days online and via telephone, since banking is an essential service.

REQUEST A MORTGAGE REPAYMENT DEFERRAL OR INTEREST ONLY PAYMENT