APIA Blog

RSS Feed

Covid-19: Mortgage holidays

Friday, March 27, 2020

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 have to: In general, only consider mortgage holiday as a break-glass solution, there are other less financially onerous options available such as breaking early to refix or go interest-only; 
  • Communicate with your tenants: We are already hearing about tenants demanding a rent reduction in light of the government's mortgage holiday announcement. Many people think a mortgage holiday means that the landlord's mortgage debt is forgiven or underwritten by the government and that is not true. It is also not their fault to think that. Everyone is stressed and scrambling. Empathy is a luxury many people don't have right now. Take the heat out conversations. Don't put yourself under the illusionary pressure that you have to respond to a request/plea/demand for rent reduction straight away.  Let your tenant know that you need some time to work out your options and that a mortgage holiday will ultimately put you under more financial pressure. Be compassionate. Be honest. People have a great capacity to be kind, we just all need to have a bit of faith in each other right now. 

General advice from Kris Pedersen Mortgages & Insurance:

 

 

Recent Posts


Tags

HHGA Sponsored post smoke alarm ird yield tenancy tribunal How to Investment tip warm up new zealand principal and interest unitary plan ocr interest only trademe CoreLogic anti-social behaviour apia income reserve bank water bill RBNZ Market report worksafe tax auckland council market election 2017 interest deductibility legal cost banking trust airbnb insulation interest rates data security negotiation lvr mortgage commerce commission off the plan development investor parry v inglis p lab wins kiwibuild letting fee property sale and purchase buyer's agent rent control shower dome early termination Holler cat re agent CCC property maintenance partners wealth creation Gluckman rtaa2020 short-term rental election2020 market rent structure Kris Pedersen Mortgages and Insurance finance legal recycling equity government heater quiet enjoyment Jeff Bezos television Level 4 privacy Must know nzpif insurance DTI subdivision retaliatory notice bond personal growth warren buffett tenancy issues heating shortland chartered accountants HSWA rta Tribunal case study anz gluckman report beginner investor housing bubble renovation Guest blog advice brightline extractor fan ventilation Q&A LIM robert kiyosaki Landlording khh auckland Investor story speculator buying will daikin rental wof minor dwelling landlord tenancy services tenant financial advisers act holiday house RTAA 2019 winz cash-flow productivity termination skill shortage property value ask an expert twg report cgt positive cash flow bad tenant covid-19 education rent arrears sublease business fixed-term tenancy Editor's Choice clnz bond form rta reform rent heat pump housing affordability sale and purchas rent increase capital gain inspection Must knows Standards New Zealand first home buying rental market property cycle housing package damage mindset scotney williams debt enforcement property apprentice house prices Case study HHS letting TCIT investment strategy ring-fencing bankruptcy opes partners initio meth contamination relationship meth property management building management Question and answer equity watercare Property (Relationships) Act trespass barfoot and thompson boarding house buying rules return asbestos maintenance

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo
09 360 2376
info@apia.org.nz

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 



Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited