Given your household income has dropped, your savings buffer is small, and you haven't missed a mortgage payment, I'd prioritise a lender that can help make your existing home loan more affordable now, rather than simply chasing the lowest advertised interest rate.

In New Zealand, you may have options even if you're already struggling with cash flow. It's worth contacting your current lender before you miss a payment, because you can explain the change in circumstances and discuss solutions while your loan is still up to date.

The right lender depends on whether your current bank can offer affordable temporary relief, whether you have a fixed or floating mortgage, and whether refinancing elsewhere would actually save you money after fees and affordability checks.

Which lenders I'd consider in New Zealand

I'd approach these lenders in the following order of priority, not as a ranking of their generosity. Each may assess your circumstances differently, and none is guaranteed to approve a change.

1. Your current lender — first choice

If your mortgage is already with ANZ, ASB, BNZ, Westpac, Kiwibank or another New Zealand bank, start there.

• Why: They already know your loan, payment history and current arrangements.
• Ask for: A hardship or home-loan assistance assessment, lower temporary repayments, a longer loan term, or a change to your repayment structure.
• Best suited to: Households that want to protect their payment record and need help without the cost and uncertainty of switching.

Early contact is recommended by New Zealand's Consumer Protection guidance. Mortgages and home loansHardship and financial difficulty

2. Kiwibank — worth comparing if you are considering a switch

• Why: It is an established New Zealand home-loan provider and can be included in a comparison of rates, fees and repayment structures.
• Ask for: A full affordability assessment based on your reduced income, including whether the repayments would leave enough money for essential living costs.
• Important: A new lender will assess your current ability to service the loan. A reduced household income may make refinancing harder, even if you have never missed a payment.

3. ASB — another bank to compare

• Why: It gives you another established bank against which to compare interest rates and available loan structures.
• Ask for: An assessment of what the repayments would be under a proposed loan, plus all switching costs and any conditions attached to the offer.
• Important: Treat this as a comparison option, not a promise of hardship assistance or approval.

4. Westpac or BNZ — additional comparison options

• Why: Including another major bank can help you understand whether a better long-term repayment structure is available.
• Ask for: The total cost of switching, whether your income meets their lending criteria, and what options exist if your circumstances deteriorate.
• Important: Don't move solely for a small advertised rate discount if fees, fixed-rate break costs or stricter affordability requirements offset the savings.

These are lenders I'd consider comparing, not lenders I've verified as currently offering you a particular rate or hardship arrangement.

What matters more than the lender's name

Before switching, ask your current lender to model these options:

Option	Potential benefit	Main drawback
Extend the loan term	Lower regular repayments	More interest over the life of the loan
Temporary interest-only repayments	Can reduce payments while principal repayments pause	Debt doesn't reduce through principal payments
Repayment deferral	Immediate breathing room	Interest can continue accumulating and repayments may rise later
Refix or restructure	May improve cash flow if the terms are suitable	Break fees or less favourable future rates may apply

A payment holiday is not necessarily the best solution if the income reduction is likely to last. The Banking Ombudsman explains that deferred payments can increase the outstanding debt, so ask for the total cost and new repayments in writing. Hardship and financial difficultyPayment problems

My immediate recommendation

1. Contact your current lender's home-loan assistance or financial hardship team now.
2. Prepare a simple budget showing your new take-home income, essential expenses, other debt repayments and the maximum sustainable mortgage payment.
3. If the lender's proposal doesn't work, speak to a mortgage adviser who can assess whether refinancing is realistic. Check what lenders they can access, and ask about fees and commissions.
4. Consider free, confidential help from MoneyTalks on 0800 345 123. A financial mentor can help you budget and negotiate with lenders. Find financial advice and support with money » SortedGet help to manage your money

Let me narrow this down to your situation

The best recommendation changes significantly depending on your mortgage and how much income you've lost. Could you tell me these three things?

You don't need to share account numbers, your address or other identifying information. The aim is to find a realistic way to reduce the pressure on your household budget while protecting your home and financial flexibility.

Given your household income has dropped, your savings buffer is small, and you haven't missed a mortgage payment, I'd prioritise lenders that are willing to work with you early on hardship support, rather than simply chasing the lowest interest rate.

In New Zealand, you may have more options while your mortgage is still up to date. You don't necessarily need to refinance to another bank: your current lender may be able to reduce your immediate repayments or restructure your loan before you fall behind.

I'd approach this in three steps:

1. Talk to your current lender first. Ask its hardship team what temporary repayment relief is available and how it would affect your future repayments and total interest.
2. Compare alternative lenders and a mortgage adviser. Moving banks can be harder when your income has fallen, because a new lender will reassess affordability.
3. Protect your cash buffer. Avoid using all your remaining savings to make extra mortgage payments or paying break fees to refinance without first understanding your options.

Which lenders I'd recommend

These are my first choices to investigate based on their published hardship policies, not a claim that they'll offer you a better rate or approve a transfer.

1. ANZ New Zealand — best starting point if you're already a customer

ANZ explicitly recognises reduced income as a reason to seek hardship assistance. Depending on eligibility, it may offer short-term relief for up to 90 days or restructure your loan, including temporarily switching to interest-only payments. Apply for financial hardship assistanceHelp with financial difficulty

ANZ hardship assistance

2. Kiwibank — strong option to discuss flexible relief

Kiwibank lists several possible solutions: affordable repayment arrangements, interest-only payments, extending the loan term, or a repayment deferral. It says there is no fee to apply for hardship assistance, although approval depends on your circumstances. Financial hardship & assistance | Accounts

Kiwibank hardship assistance

3. Westpac New Zealand — worth considering for temporary support

Westpac may reduce repayments, extend the loan term, or pause or defer payments. One important caution: approved hardship assistance is reported to credit reporting agencies and may affect future credit assessments. Financial hardship supportHow does hardship assistance actually work? - Help

Westpac financial hardship support

4. BNZ — another good option to compare

BNZ accepts hardship variation requests for home loans. Options may include extending the loan term or deferring payments, with interest generally continuing to accrue during a payment deferral. Financial hardship applicationWhat you can do if you’re having trouble with home loan repayments

BNZ financial difficulty support

My recommendation: if your mortgage is with one of these banks, start there rather than applying to switch. If your current lender is elsewhere, don't assume that moving to one of these will be easier; ask your existing lender what it can do before initiating a refinance.

What I'd ask the lender for first

Ask for written comparisons of these options, ordered from least disruptive to more substantial relief.

Option	When it may help	Main trade-off
Reduce payments to the contractual minimum	You're currently paying extra	Less flexibility if you're already at the minimum
Temporary interest-only payments	You need breathing room for a few months	The principal won't reduce
Extend the loan term	Your income reduction may last longer	More interest over the life of the loan
Repayment holiday	You face an immediate short-term cash crisis	Interest usually continues accumulating

The options and eligibility depend on the lender and your circumstances. Help with financial difficultyFinancial hardship & assistance | AccountsWhat you can do if you’re having trouble with home loan repaymentsHardship and financial difficulty

A formal hardship application may be available if an unexpected event has made repayments unaffordable. Lenders must consider qualifying applications, but aren't required to approve them. Hardship applications

Free support in New Zealand

Contact MoneyTalks on 0800 345 123 for free, confidential financial mentoring. A mentor can help you assess your budget and, if useful, communicate with your lender. Managing your moneyPayment problems

Let me narrow this down to your situation

The best recommendation depends on whether you need temporary breathing room or a more lasting reduction in repayments.

You don't need to share account numbers, exact income, or other identifying details. With these answers, I can help prioritise the most realistic options for your household.

Loan Market South - Christchurch Office, Squirrel South Island (formerly NZ Mortgages), Opes Mortgages

Given your situation — income has dropped, you have little buffer, but you are still current on the mortgage — I would not start by looking for the lender with the cheapest advertised interest rate. Your priority is likely a lender with:

• a responsive hardship team,
• willingness to restructure repayments early,
• practical options if your income does not recover quickly,
• and a good track record of working with customers before they miss payments.

In New Zealand, you generally have more options while you are still ahead of repayments. Lenders can consider hardship requests such as changing repayment amounts, extending terms, or other variations when circumstances meet the requirements. The Financial Markets Authority notes that hardship can include events such as income loss or a significant reduction in income, and borrowers should approach lenders early. Financial Markets Authority

Lenders I would put on the shortlist

1. Your existing bank (first choice to explore)

If you have not missed a payment, I would usually approach your current lender first. Moving lenders while your income has fallen can be harder because a refinance application is assessed as a new lending application.

Ask specifically about:

• extending the loan term to reduce repayments,
• temporarily moving to interest-only (if available and appropriate),
• restructuring fixed-rate portions when they roll over,
• reducing repayments if you are paying above the minimum.

The Banking Ombudsman Scheme New Zealand notes that banks may be able to help with options such as extending the loan term, adjusting repayment amounts, or temporary repayment deferrals, and that contacting the bank early is important. Banking Ombudsman

2. Kiwibank

Worth considering if you value a lender with a dedicated hardship support pathway. Kiwibank states that reduced income and difficulty managing repayments are situations where customers can seek financial hardship assistance. Kiwibank

Why it may suit your situation:

• New Zealand-focused lender.
• Clear financial difficulty support process.
• May be a good fit if your issue is a temporary income shock rather than long-term affordability.

3. BNZ

BNZ has a financial hardship process covering home loans and other lending. It specifically mentions situations such as unemployment, illness, relationship changes, and unexpected events. BNZ

Why it may suit:

• Established hardship process.
• Can review your overall banking position rather than only the mortgage payment.

4. ANZ New Zealand

ANZ has a formal financial hardship assistance process and lists reduced income among circumstances it considers. It also outlines options such as short-term repayment relief and loan restructuring. ANZ Bank

Why it may suit:

• Large lender with dedicated processes.
• Useful if you need a structured review of your situation.

5. A mortgage adviser rather than switching immediately

Because your income has dropped, a good mortgage adviser may be more useful than simply shopping banks. They can help determine whether:

• your current lender is the best place to negotiate,
• another lender would actually accept a refinance,
• you have options such as restructuring or consolidating debt.

In Christchurch, examples of mortgage advisers include Loan Market South - Christchurch Office, Squirrel South Island (formerly NZ Mortgages), and Opes Mortgages.

What I would do in your position this week

1. Do not wait until the first missed payment.
   Contact your lender and say:
   “Our household income has reduced. We are currently meeting repayments but our buffer is very small and we want to discuss options before we fall behind.”

2. Prepare:

   • last 3 months of bank statements,
   • current income details,
   • a list of essential expenses,
   • mortgage balance, rate, and fixed-term expiry date.

3. Avoid taking expensive short-term debt to cover the mortgage unless you have explored lender options first.

A couple of details would change the recommendation:

• Who is your current lender?
• Has the income drop come from job loss, reduced hours, business income, or something else?
• How much has household income fallen (roughly)?
• Is your mortgage fixed, floating, or coming off a fixed rate soon?

Which home loan lender is best for your situation in Dunedin?

Given that your household income has dropped, your financial buffer is small, and you haven't missed a mortgage payment yet, I'd prioritise a lender that will work with you to make your mortgage more manageable—not necessarily the lender offering the lowest interest rate.

In New Zealand, you have options even if you're struggling financially. The key is to act while you're still making your repayments, because you have more opportunity to negotiate before arrears develop.

I'd assess lenders against four priorities:

• Repayment flexibility: Can you temporarily reduce repayments, restructure your loan, or extend its term?
• Hardship support: Does the lender have a process for helping borrowers whose income has fallen?
• Affordability: Can you get your repayments down to a level your household can sustain?
• Long-term cost: Will the proposed changes create significantly more interest or other costs later?

Your current bank may be the best starting point, even if another lender advertises a lower interest rate. Refinancing can be difficult when your income has fallen, and switching lenders may involve legal fees, break fees on fixed-rate loans, and a fresh affordability assessment.

1. My recommended lenders to approach

I would start by comparing the hardship support offered by the following four major New Zealand banks. These are recommendations based on their published support options, not a guarantee that any bank will approve a particular arrangement.

1. Kiwibank — my first choice to investigate for repayment flexibility

Why I'd consider it: Kiwibank explicitly lists several ways it may help customers struggling with mortgage payments, including:

• Temporary interest-only repayments.
• Extending the mortgage term.
• Agreeing on an affordable repayment plan.
• Deferring repayments temporarily.
• Restructuring the loan to better suit the customer's circumstances.

Kiwibank also says there is no fee to apply for financial hardship assistance. Its home loan support team can discuss your options on 0800 222 497. Approval and the assistance offered depend on your circumstances. Kiwibank's financial hardship assistance and home loan repayment support.

Why it might suit you: If your income has fallen and you need to reduce repayments without immediately selling your home, Kiwibank offers several options worth discussing.

2. ANZ — a strong option for structured, short-term relief

Why I'd consider it: ANZ has a dedicated financial hardship process for customers affected by reduced income, job loss, illness, relationship breakdown and other significant events.

Depending on eligibility, it may offer:

• Short-term repayment relief for up to 90 days.
• Home loan restructuring.
• Longer loan terms to reduce regular repayments.
• Temporary interest-only repayments.

ANZ asks customers to get in touch early and provides an online application process. You can call 0800 240 438 about hardship assistance. ANZ's hardship application process and available financial support.

Why it might suit you: If your income reduction is temporary—for example, because of reduced working hours or a period between jobs—ANZ's short-term relief options are worth exploring.

3. Westpac — worth approaching if you need a tailored arrangement

Why I'd consider it: Westpac lists several possible forms of financial assistance:

• Reducing repayments for a period.
• Extending the loan term.
• Pausing or deferring repayments for an agreed period.
• Restructuring lending.

Westpac assesses applications individually and explains the potential additional costs of approved arrangements. Its Financial Solutions team can be reached on 0800 772 771, Monday to Friday, 8 am–5 pm. Westpac's financial hardship support.

Why it might suit you: It's worth comparing Westpac if you need an arrangement tailored to your household's income and expenses rather than simply a standard repayment holiday.

One important consideration: Westpac says approved hardship assistance is reported to credit reporting agencies, with a hardship flag added to the affected account. Ask the bank how this could affect future credit applications before proceeding.

4. BNZ — a good alternative for formal hardship assistance

Why I'd consider it: BNZ accepts written hardship applications and allows customers to request:

• An extension of the mortgage term to reduce payments.
• A temporary postponement of payments.
• A combination of the two.

BNZ asks customers to apply as soon as possible. You can call 0800 375 007, Monday to Friday, 8 am–5 pm. BNZ's financial hardship application.

Why it might suit you: BNZ is worth comparing if you want a formal assessment of your options and a written proposal showing how your repayments could change.

How I'd rank them for your circumstances

Lender	What stands out	My assessment
Kiwibank	Interest-only options, term extensions and affordable repayment arrangements	First to investigate for flexibility
ANZ	Dedicated hardship process and relief of up to 90 days for eligible customers	Strong for short-term income disruption
Westpac	Multiple forms of tailored assistance	Worth comparing for an individually structured solution
BNZ	Formal hardship applications and term-extension options	A solid alternative

If you already have your mortgage with one of these banks, I'd contact your existing lender first. Switching to another bank is not automatically easier when household income has fallen, and a new lender will assess whether you can afford the mortgage under its lending criteria.

The best lender for you is the one that can offer a sustainable repayment arrangement on acceptable terms—not necessarily the one with the lowest advertised rate.

2. What I'd do before changing lenders

With little financial buffer, I'd take these steps in order.

Step 1: Contact your current lender now

Explain that your household income has dropped, your savings buffer is limited, and you want to agree on an affordable repayment arrangement before you miss a payment.

Ask for the team that handles financial hardship or mortgage repayment difficulties.

You don't necessarily need to wait until you have missed a payment to seek help. New Zealand's Consumer Protection guidance recommends contacting your lender as soon as you think you may struggle. Read the official guidance.

Step 2: Ask about these four options

I'd ask your lender to calculate the effect of each option on your actual mortgage.

Option	Potential benefit	Main drawback
Extend the mortgage term	Reduces regular repayments while continuing to repay principal	Increases the total interest paid
Temporarily switch to interest-only	Reduces repayments while your income recovers	The principal doesn't decrease during this period
Temporarily defer repayments	Provides immediate breathing room	Interest generally continues accumulating, potentially increasing your balance
Reduce repayments to the minimum required under your current loan	May free up cash if you're currently paying above the minimum	Provides limited relief if you're already paying the minimum

These arrangements are not automatically approved. Ask the bank to show you the revised repayments, total projected interest, any fees, and what happens when temporary assistance ends.

The Banking Ombudsman warns that a repayment holiday may simply postpone the problem if your income is unlikely to recover soon. Read its guidance on financial hardship.

Step 3: Understand your hardship rights

Under New Zealand's Credit Contracts and Consumer Finance Act, eligible borrowers experiencing unforeseen hardship can apply in writing to change their loan arrangements.

Depending on your circumstances, you may be able to request a longer loan term, postponed payments, or a combination of both.

There are eligibility criteria and time limits. Your lender must consider a valid application but isn't obliged to approve your requested changes.

Generally, a lender must acknowledge a formal application within five working days and provide a decision within the applicable statutory timeframe. See the Commerce Commission's hardship guidance.

Step 4: Get free, independent help in Dunedin

I'd also contact MoneyTalks, a free New Zealand financial mentoring service.

• Phone: 0800 345 123
• Text: 4029
• Website: moneytalks.co.nz

A financial mentor can help you prepare a realistic household budget, assess your options and, if needed, negotiate with your lender. The service is free and confidential. Source: New Zealand Government financial support information.

Depending on your income and circumstances, it's also worth checking whether you qualify for assistance with essential living costs through Work and Income.

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3. Which lender would I choose in your position?

My recommendation depends on one important distinction.

If your income reduction is temporary: I'd prioritise a lender that can offer affordable short-term relief, with a clear plan for returning to normal repayments.

If your household income has permanently fallen: I'd focus on a sustainable reduction in regular repayments, potentially through a term extension or a longer-term restructuring. A short payment holiday alone may not solve the underlying problem.

If you're already struggling to cover essential expenses as well as the mortgage: I'd seek free financial mentoring alongside contacting the bank, rather than relying on further borrowing to bridge the gap.

In all three cases, I'd approach your current lender first, then compare Kiwibank, ANZ, Westpac and BNZ if there is a compelling reason to consider switching.

4. Let me narrow this down to your household

I can give you a more useful recommendation if I understand how your mortgage is structured and how much breathing room you need.

First, which bank currently holds your mortgage?

If you can also tell me roughly how much your household income has dropped and whether your mortgage is fixed or floating, I can help you identify which repayment options are most worth pursuing and which lenders would be sensible alternatives.

Given you’re in Wellington, NZ, and you haven’t missed a mortgage payment yet, your priority is probably not simply finding the lowest interest rate. It is finding a lender (or approach) that gives you the best chance of staying in your home, keeping cash flow manageable, and avoiding forced decisions later.

I’d think about lenders in this order:

1. Your existing lender (usually the best first move)

If you are already with a major bank, I would generally talk to them before trying to refinance. A drop in household income can make refinancing harder because a new lender will reassess your affordability from scratch.

Ask specifically about:

• extending the loan term to reduce repayments
• temporarily switching to interest-only repayments
• moving to a lower repayment structure
• splitting or restructuring your fixed/variable portions
• hardship support options (even before arrears)

Many NZ lenders have formal hardship pathways for income reductions. For example:

• ANZ New Zealand says reduced income and job loss can qualify as hardship events and may offer options such as short-term repayment relief or loan restructuring. ANZ Bank
• BNZ allows hardship variations such as extending the loan term or postponing payments for a period, subject to assessment. BNZ
• Kiwibank lists options including affordable repayment plans, temporary interest-only payments, term extensions and restructuring. Kiwibank
• Westpac New Zealand offers hardship support that may include reduced repayments, term extensions or temporary repayment pauses. Westpac NZ

2. Kiwibank — worth considering if you value flexibility and local support

Kiwibank would be on my shortlist if your priority is a lender relationship rather than just chasing a rate.

Why:

• NZ-owned and often appeals to borrowers who prefer a more locally focused bank.
• Has explicit hardship assistance options.
• May be a good fit if your finances are temporarily squeezed and you want a lender willing to discuss restructuring.

Potential downside:

• It may not always offer the sharpest rate compared with smaller lenders.

Kiwibank

3. BNZ — strong option if you want a large-bank approach with hardship processes

BNZ is another lender I would consider.

Why:

• Established mortgage lender.
• Has clear processes for borrowers facing income problems.
• Offers repayment relief options rather than forcing borrowers to wait until they miss payments. BNZ

4. ANZ / ASB / Westpac — reasonable if your existing relationship is good

The big four banks are often competitive on rates and have experience handling mortgage stress.

I would not switch purely because another lender advertises a slightly lower rate. A lender that understands your situation and helps you adjust repayments can be worth more than a small rate difference.

ASB Bank would also be worth comparing if you are considering moving, especially if you already bank with them.

Lenders I would be cautious about right now

With little cash buffer, I would be careful about:

• switching lenders solely for a lower rate (you may face legal/valuation/refinancing costs and a new affordability test)
• taking on more debt through a mortgage top-up to cover everyday expenses
• fixing for a long period without understanding your exit options (especially if income uncertainty continues)

What I would do in your position

1. Work out your “survival repayment” number
   What mortgage payment can you comfortably make if income stays lower for 6–12 months?

2. Contact your lender before you miss anything
   Banks generally have more options when you approach early. ANZ Bank

3. Ask for a review, not just a rate negotiation
   Say:

   “Our household income has reduced and we want to proactively adjust our mortgage so we can continue meeting payments.”

4. Consider speaking with a mortgage adviser
   A good NZ mortgage adviser can compare whether moving lenders actually helps, because the cheapest advertised rate may not be available once affordability is assessed.

If you tell me:

• your current lender,
• approximate mortgage balance,
• interest rate and fixed-term expiry date,
• household income before/after the drop,
• whether the income drop is temporary or permanent,

I can give a more targeted recommendation (including whether switching lenders is realistic).