Bank of New Zealand (BNZ) has announced today it is ready to accept applications for home loan repayment deferment from its customers.
The scheme, announced yesterday by Finance Minister Grant Robertson, has been developed in conjunction with the Government, the Reserve Bank of New Zealand and retail banks. It allows mortgage holders to apply for a deferment of principal and interest repayments for up to six months if their income has been affected by the economic disruption from COVID-19.
BNZ Chief Customer Officer, Paul Carter, says, “We know customers are concerned about managing repayments on their home loans if their income is affected by the lockdown. BNZ is here to help while we all do our part to banish COVID-19 from our shores.”
Carter says the home loan repayment deferment provides another option for customers to manage their finances during lockdown.
He says, “In combination with lower rates, overdrafts and other relief measures in our customer support package, home loan repayment deferments will help give our customers peace of mind during this uncertain time.”
A deferment on repayments needs to be considered carefully, as interest will continue to accrue during the time payments are not being made.
Carter says people who apply will speak to a BNZ banker to make sure it’s the right option for them.
“When customers fill out the form, a BNZ banker will call them back as soon as possible to discuss their circumstances and ensure it’s right for their needs. Once confirmed the deferment will begin immediately,” says Carter.
Customers can access the form online at www.bnz.co.nz/covid19
Other support measures available to BNZ customers include:
For business customers:
- Waiving all contactless debit transaction fees for SMEs for three months from 20 March 2020
- BNZ bankers can provide immediate access to funds to help with short-term cashflow needs.
- Extensions of Trade Credit
- Overdraft rates reduced by 1%
- Online, 24/7 capability to apply for business lending up to $100K without additional security.
- Apply online for up to $100,000 of lending
- Principal repayment holidays
- Extension of term lending periods
- Short term loans
- Hardship loans
- Business credit card options
- ‘Interest Only’ options on a case-by-case basis
- PayClip monthly fees waived for April
For personal customers:
- Full pass through of 75bps OCR cut to floating home loan rates
- Cuts to fixed home loan rates:
- 3.09% p.a. fixed for 1 year (-40bps)
- 3.05% p.a. fixed for 18 months (-34bps)
- 3.35% p.a. fixed for 2 years (-20bps)
- To support savers, a new 18-month special term deposit rate of 2.65% p.a. (up 25bps).
- Hardship support available