A what-do-we-know-what-don’t-we-know about mortgage holidays so far:
- Debt-deferral, not debt-forgiveness: Interest will continue to accrue for the duration of the ‘holiday’;
- More information to come: Most banks have signaled that more information/firmed up packages will be announced the week of 30th March;
- Packages designed more for owner-occupiers rather than investors: Investors should get in touch with their brokers for a more global
and long-term approach; - Hold if you can: We expect rules around mortgage holidays, refinancing, restructuring to be relaxed in the next week or so until banks
can put out packages that speak specifically to the challenges of Covid-19 and that reflect the deal they have struck this week with the government;
Some tips for investors:
- Talk to your broker: Resist the urge to knee-jerk, get in touch with your broker to get a strategy in place. We note that our broker
partner Kris Pedersen Mortgages & Insurance is on extended hours to help investors
through these times; - Don’t rush to call: Banks are absolutely inundated this week helping customers with immediate cash-flow challenges if you are able
to, give your bank some space to deal with those calls first; - Email and use online forms: Let’s do our bit to avoid overloading the phone network, email or use online banking secure mail facilities
if you can; - Be clear with your bank: Tell them exactly what relief you are after (mortgage holiday/restructure/refinance) and how your income
is affected to minimise back and forth; - Get onto Twitter now: For live announcements (ANZ, ASB, BNZ, Kiwibank,
Westpac) or get into the habit of Googling ‘<bank name> Covid-19’; - Break-glass only if you...

