COVID-19 and your home loan
Apply to reduce or defer your payments for up to six months
We understand that COVID-19 is creating unsettling times and you may be worried about making your next mortgage payment. We ask that you carefully read the following information and consider it for your personal situation.
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COMMON QUESTIONS ABOUT
On Tuesday 24 March the Government, along with the Reserve Bank and all retail banks, announced a six-month principal and interest Mortgage Payment Deferral option for mortgage holders and SME customers, whose incomes will be affected by the economic disruption from COVID-19. TSB will also be offering customers the option of moving to Interest Only payments for up to six months.
If your income is affected by COVID-19 you may qualify for this support.
In response to the Government’s announcement, TSB will be offering support to customers by:
The Mortgage Payment Deferral and Interest Only offers apply to TSB home loans, we have other options available for qualifying customers with other types of lending.
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.
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.
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 allows you to take a break from making all of your contractual mortgage payment for up to six months. 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.
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.
Please use our Application Form to request this offer.
Please contact us and we’ll be happy to work with you to assess your needs.
If your income has been affected by COVID-19, then yes.
If at any time your circumstances change, simply contact us to discuss your options.
The payment deferral option is available for all qualifying customers and at this stage we have no firm end date in place. TSB also has existing options for customers experiencing financial hardship (before or during COVID-19) and these will continue to be available throughout this time.
No, your credit rating will not be impacted by taking this offer.
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.
© TSB BANK LIMITED 2008-2020. Use of this website is subject to our Website Policy. TSB BANK Limited is in trade for the purposes of the Fair Trading Act 1986.
© TSB BANK LIMITED 2008-2020. Use of this website is subject to our >Website Policy. TSB BANK Limited is in trade for the purposes of the Fair Trading Act 1986.