MORTGAGE HOLIDAY EXTENSION

MORTGAGE HOLIDAYS EXTENDED BEYOND SEPTEMBER

“New Zealand real estate was facing a triple whammy in September which would’ve been detrimental to house prices and industry activity, but things are now looking more workable,” says Derryn Mayne, Owner of Century 21 New Zealand.

The real estate leader says when the General Election and the end of the extended wage subsidy scheme were both firmly locked in for September, extending the mortgage holiday scheme was a no-brainer.

The Government, Reserve Bank and retail banks announced on 24 March a six-month principal and interest payment holiday for mortgage holders and SME customers whose incomes had been affected by the economic disruption from Covid-19.

As of 30 June, nearly 60,000 Kiwis had deferred their payments on the likes of mortgages, while a further 79,000 had reduced their payments servicing home loans, personal lending or debt. underlying strength of New The Reserve Bank Governor has prove itself, with any doom and since confirmed the six-month gloom forecast back in March and home loan deferral scheme is to April yet to be proven right. be extended, with details to be released. This follows Australian “Industry statistics show median banks last month agreeing to house prices across New Zealand extend their six-month are well up on last year and most mortgage holiday scheme by regions are still experiencing price another four months. lifts month to month. REINZ also “Having supported over 1.7 million new listings and properties sold for jobs, applications for the hugely the month of June in four years. successful wage subsidy scheme were set to close “Real estate is defying on 1 September. We any negativity and will of course that’s great for have an election “...the underlying strength overall business which always of New Zealand real and consumer sees real estate continues to prove confidence. estate activity slow, and on itself, with any doom and A perfect storm was on 24 September gloom forecast back in the horizon, the mortgage March and April yet to be but it has now holiday scheme proven right.” been avoided it. was due to expire. The Government, This could’ve been Reserve Bank and a spring of discontent retail banks acted for thousands of Kiwis, but the decisively back in March. We pressure has been taken off,” needed that same bold leadership says Ms Mayne. again, and they delivered,” says The Century 21 boss says the Zealand real estate continues to reported the highest number of Derryn Mayne.