COVID-19: Mortgage Holidays for landlords

Help for home-owners & landlords

A large of chunk of the working population of New Zealand has seen their jobs at risk. To soften this blow the government has released the Business Support Package for employees, businesses, and self-employed people.

This employment risk flows through to impact homeowners and landlords. In order to support these people the Government, and the Reserve Bank introduced the mortgage holiday repayment scheme. This scheme was designed to avoid people losing their homes during this economic crisis.

What are the details of the scheme?

The six-month principal and interest payment holiday for mortgage holders and small business customers whose incomes have been affected by the economic disruption from Covid-19.

The scheme began on the 27th of March 2020 and includes a limit of NZ$500,000 per loan and applies to companies with a turnover of between $250,000 and $80 million.

To apply you need to contact your bank directly.

What does this mean for tenants?

Hopefully, it allows landlords to be more flexible with their rental arrangements when and if it’s required. Tenants need to understand that a rent freeze and a mortgage holiday does not mean write off. Both need to be paid.

If you want to speak to someone about how Dunedin Property Management can help you. Please give us a call.