MORTGAGE DEFERRAL SCHEME

MORTGAGE HOLIDAYS CONFIRMED UNTIL END OF MARCH

“Extending mortgage holidays until the end of March is positive news for homeowners and the real estate industry generally. Things are now looking more workable,” says Derryn Mayne, Owner of Century 21 New Zealand.

for Australian homeowners by another four months.

Initially the Reserve Bank announced on 24 March a sixmonth 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 The real estate leader’s comments had deferred their payments on the followed the Minister of Finance likes of mortgages, while a further recently announcing a six79,000 had reduced their payments month extension to the servicing home loans, mortgage personal lending or deferral scheme. The Government, "...this extension of mortgage holidays debt. “With the General Reserve Bank and retail banks agreed will help preserve the real estate market Election and applications closing on to a six-month holiday which was due to expire and property values overall." the wage subsidy scheme still on 27 September. It happening this will now run until spring, extending 31 March 2021. mortgage holidays until the end of the first quarter next This follows banks in Australia year is a no-brainer. We need to agreeing in July to extend their sixfirst get over these two big humps, month mortgage holiday scheme and it will mean a brighter summer! “With a triple whammy averted for September, this could’ve been a spring of discontent for thousands of homeowners. However, this extension of mortgage holidays will help preserve the real estate market and property values overall,” she says.

The Century 21 boss says the underlying strength of New Zealand property continues to prove itself, with industry statistics still showing that any doom and gloom forecast back in March and April has yet to be seen.

“There was a perfect storm brewing on the horizon this spring, but the Reserve Bank has again acted decisively which will only help overall confidence in the market,” says Derryn Mayne.