# HL-Q184: Support after purchase Our income has dropped and we're worried about the mortgage, though we haven't missed a payment. Before we call our bank, I'd like to know which banks are known for treating customers well when repayments get hard. Borrower: Household facing an income drop [Study](https://nzbrands.ai/research/banking/home-lending/) · Collected 11 October 2026 ## chatgpt Answer ID: 43f55af5-dd98-4276-9ba4-425e8c0ac6e2 I'm sorry you're having to think about this. A drop in income can make a mortgage feel precarious very quickly, but you don't need to miss a payment before asking your bank for help. Contacting them early gives you a chance to discuss options while you're still up to date. In New Zealand, I'd look at two things when comparing banks: their track record in treating customers fairly when they're under financial pressure, and the practical help they offer when mortgage repayments become difficult. Those aren't necessarily the same thing. One important distinction: a bank can have good customer-service ratings overall without being especially accommodating when a household is experiencing financial hardship. ## Which New Zealand banks are worth comparing? I wouldn't confidently label any one bank the best for mortgage hardship support based on the public evidence I found. There are, however, useful ways to compare them. ANZ New Zealand Include it in your comparison if you're considering a major bank. Look at its published hardship process and complaint-handling figures rather than relying on its overall reputation. [Banking Ombudsman complaints dashboard](https://www.bankomb.org.nz/complaints-dashboard) ASB Compare how it assesses hardship requests, what repayment changes it considers, and how clearly it explains the costs and consequences. [Banking Ombudsman complaints dashboard](https://www.bankomb.org.nz/complaints-dashboard) BNZ BNZ publishes a [financial hardship application page](https://www.bnz.co.nz/support/everyday-accounts/managing-accounts/experiencing-financial-difficulty) that explicitly covers home loans and loss of income. That makes its process easy to examine, although it doesn't establish that BNZ treats customers better than its competitors. [Financial hardship application](https://www.bnz.co.nz/support/everyday-accounts/managing-accounts/experiencing-financial-difficulty) Westpac New Zealand Include it in the same comparison, focusing on the options available to borrowers whose income has fallen but who are still making payments. [Banking Ombudsman complaints dashboard](https://www.bankomb.org.nz/complaints-dashboard) Kiwibank Another option to compare on the same criteria, particularly the flexibility of its hardship process and the clarity of its communication. [Banking Ombudsman complaints dashboard](https://www.bankomb.org.nz/complaints-dashboard) A caution on the wider customer-service picture: Consumer NZ reported in May 2026 that no bank qualified for its People’s Choice Award in its latest banking satisfaction survey. That reflects broader customer dissatisfaction, not a specific finding that banks failed customers experiencing mortgage hardship. [No bank good enough to win People’s Choice Award in 2026](https://www.consumer.org.nz/about-us/media-releases/no-bank-good-enough-to-win-peoples-choice-award-in-2026) The Banking Ombudsman's [complaints dashboard](https://www.bankomb.org.nz/complaints-dashboard) is a more relevant starting point for checking bank-by-bank complaint patterns. Even then, complaint numbers need context: a large bank may receive more complaints simply because it has more customers, and complaint figures alone don't tell you how flexibly it handles a particular hardship request. [Complaints dashboard](https://www.bankomb.org.nz/complaints-dashboard) ## What I'd do before choosing a bank Since you're still making repayments, I would speak to your existing bank before considering switching. A new bank would need to assess your financial position, and refinancing may be harder if your income has fallen. Ask your current bank's home-loan or hardship team about these options: - Reduced repayments: whether you can pay less for a period. - Extending the loan term: spreading the remaining balance over more years to reduce regular payments. - Temporary repayment deferral: pausing repayments for an agreed period, if appropriate. - Interest-only repayments: whether they can offer this and for how long. These options aren't guaranteed, and a payment holiday or longer term can increase the total interest you pay. The Banking Ombudsman explains the trade-offs in its [hardship and financial difficulty guide](https://www.bankomb.org.nz/guides-and-cases/quick-guides/lending/hardship-and-financial-difficulty). [Hardship and financial difficulty](https://www.bankomb.org.nz/guides-and-cases/quick-guides/lending/hardship-and-financial-difficulty) You can also get free, confidential help from a financial mentor through [MoneyTalks](https://www.moneytalks.co.nz/), including help preparing a budget and talking to your lender. [Payment problems](https://www.consumerprotection.govt.nz/help-product-service/borrowing-money/payment-problems) ## Three questions that will help me narrow this down Rather than give you a generic ranking of banks, I'd like to help you find the most relevant options for your situation. You don't need to share your income, mortgage balance or other sensitive financial details to start. The key is to work out what sort of flexibility you may need before your repayments become unmanageable. --- ## gemini Answer ID: 5c1fa609-ac77-497f-88d4-be79809f5dc5 Dealing with a drop in income is stressful, but the fact that you haven't missed a payment yet puts you in a strong position. Under New Zealand credit contracts and consumer legislation, all registered banks (including the major retail lenders like **ANZ, ASB, BNZ, Kiwibank, and Westpac**) have a legal obligation to consider reasonable financial hardship applications. Rather than treating hardship as a default, New Zealand banks operate dedicated internal hardship teams designed to work with customers who reach out proactively. --- ### How Major NZ Banks Generally Approach Hardship While individual experiences can vary depending on your specific loan officer, New Zealand’s primary banks follow similar regulatory guidelines governed by the Credit Contracts and Consumer Finance Act (CCCFA) and oversight from the Banking Ombudsman: * **Proactive vs. Reactive Culture:** All major banks publicly emphasize that customers who contact them *before* missing a payment find it much easier to negotiate flexible solutions. Kiwibank, BNZ, and ANZ, for instance, explicitly encourage early engagement and provide dedicated hardship lines. * **Consistency Across the Big Four:** ANZ, ASB, BNZ, and Westpac have formalized hardship processes. Because they are heavily scrutinized by regulators and consumer advocates, they generally offer standardized relief options (such as shifting to interest-only or granting temporary payment deferrals). * **Kiwibank (State-Owned Local Presence):** As a locally owned bank, Kiwibank often receives positive public perception for community-focused hardship navigation, though their assessment criteria regarding your overall financial position remain just as thorough as the major Australian-owned banks. --- ### What Support Options You Can Ask For When you call your bank, you don't have to accept a rigid structure. You can discuss several flexible arrangements tailored to a temporary or prolonged drop in income: | Relief Option | How It Works | Things to Consider | | :--- | :--- | :--- | | **Temporary Interest-Only** | Lowers your monthly mortgage payment by stopping the principal repayment component for a set period (e.g., 3 to 6 months). | Significantly reduces immediate cash flow pressure, though your overall loan term and total interest cost will increase. | | **Loan Term Extension** | Spreads your remaining mortgage balance over a longer period (e.g., bumping a 20-year remaining term back out to 25 or 30 years). | Lowers your regular recurring monthly payments permanently, making it easier to manage a permanent or long-term drop in income. | | **Repayment Pause (Holiday)** | A temporary halt on all mortgage payments for a short window. | Interest continues to accrue during the break and is added back onto the loan balance (capitalised), meaning you owe more overall. | --- ### Recommended Next Steps Before You Call 1. **Prepare a Realistic Budget:** Banks will ask for a clear breakdown of your current household income and essential expenses. Having a snapshot of where your money is going shows them you are taking the situation seriously. 2. **Determine the Timeline:** Be ready to explain whether the income drop is short-term (e.g., a few months between jobs) or long-term, as this dictates which solution the bank will recommend. 3. **Utilize Free Independent Support:** If you want help preparing your numbers before speaking to the bank, you can access **MoneyTalks** (a free, confidential financial mentoring service in New Zealand supported by FinCap). They frequently help people structure hardship applications for banks. --- --- ## ai-mode Answer ID: 3a5653b6-e61b-41c3-aa00-2b9a7af8210e It is stressful when your income drops, but the fact that you are being proactive and **haven't missed a payment yet** puts you in a much stronger position. In _New Zealand_ , all registered banks operate under the same legal obligations when it comes to financial hardship. Under the **Credit Contracts and Consumer Finance Act (CCCFA)** , if you experience unforeseen hardship (like a drop in income, illness, or job loss), you have a legal right to apply to your bank in writing to change your loan contract. While customer satisfaction surveys (such as those from Consumer NZ) routinely rank smaller and customer-owned institutions like **The Co-operative Bank** or **TSB** higher for general customer service, **all major retail banks in NZ** (including ANZ, ASB, BNZ, Kiwibank, and Westpac) have dedicated hardship teams. How well they "treat you" often depends less on the specific brand name and more on **how early you contact them** and the clarity of your communication. What Banks Can Offer Under Hardship When you submit a financial hardship application, banks generally have a few standard tools they can use to help bridge a temporary gap: * * **Temporary payment reduction:** Reducing your monthly payments to an agreed-smaller amount for a set period. * **Interest-only period:** Temporarily pausing the principal repayment portion so your monthly outgoings drop significantly. * **Term extension:** Extending the overall length of your mortgage term to lower the ongoing regular payment amounts. * **Short-term payment deferral:** Pausing payments entirely for a brief window (keep in mind interest usually still accumulates, increasing the total cost over time). [www.bankomb.org.nz] * Tips Before You Call or Write 1. **Put it in writing:** While a phone call is a good heads-up, formal hardship applications under the CCCFA should ideally be submitted in writing. Outline clearly why your income dropped, how long you expect it to last, and what specific adjustment you need. [www.bankomb.org.nz] 2. **Have your numbers ready:** Be prepared to show a realistic, trimmed-down budget detailing your current income versus essential living expenses. 3. **External Free Support:** If you want guidance on how to structure your budget or talk to your lender before making the call, you can contact free financial mentoring services like **MoneyTalks** or your local **Citizens Advice Bureau**. Would you like help mapping out a **temporary budget template** , or guidance on **how to structure your written hardship request** to your bank? --- ## ai-overviews Answer ID: dedbb4f1-f288-47d5-81df-a6d2579e426e In New Zealand, **all registered banks are legally obligated** to treat you fairly and carefully consider requests for financial relief. Under the **Credit Contracts and Consumer Finance Act 2003 (CCCFA)** , if you experience an unexpected drop in income, your bank must follow a strict legal framework to assess your hardship application. Because of this, no single major bank stands out as "lenient," but several have established specialized systems to make the process smoother. The major New Zealand banks provide dedicated "Extra Care" or specialist hardship support structured as follows: 🏢 Specialized Bank Support Programs * **BNZ:** Operates a **Fair Conduct Programme** with a dedicated domestic and economic harm response team to help navigate life changes. * **Westpac:** Features an **Extra Care Programme** and uses an "Extra Care Indicator" flag on customer profiles to ensure staff provide ongoing, specialized patience and flexibility. * **Kiwibank:** Runs a **Special Care Programme** explicitly focused on giving customers more time, specialized financial mentors, and tailored repayment options. * **TSB & The Co-operative Bank:** These smaller Kiwi banks are highly rated for customer care. TSB has **Extra Care Champions** in every branch, and Co-op uses a dedicated **Customer Vulnerability and Resolution Advisor** to review accounts case-by-case. * **ANZ & ASB:** Both maintain large, highly structured **Financial Hardship Teams** with clear online application pathways to adjust loans before defaults occur. * * * 🛠️ Relief Options the Bank Can Offer When you call your bank, they will typically assess your situation against these standard short-to-medium-term solutions: Relief Option| How It Works| The Catch / Hidden Cost ---|---|--- **Switch to Interest-Only**| You stop paying the principal loan amount and only pay the interest for a set period (e.g., 6–12 months).| Reduces monthly costs immediately, but your overall debt balance doesn't go down. **Loan Term Extension**| Stretching a 20-year mortgage out to 25 or 30 years lower your ongoing monthly payments.| Dramatically increases the total amount of interest you will pay over the life of the loan. **Mortgage Deferral (Holiday)**| Pausing all mortgage payments entirely for a short window (usually up to 3 months).| Interest is "capitalized"—meaning it keeps compounding and gets added to your total loan balance. * * * 📋 What to Do Next Because you **haven't missed a payment yet** , you are in a much stronger position. Banks prefer proactive communication. 1. **Gather Your Data:** Before calling, calculate your new household income and outline your bare-minimum living expenses. 2. **Contact the "Hardship" or "Care" Team Directly:** Do not just speak to a general customer service representative. Ask specifically for the **Financial Hardship Team** or **Special Care Team**. 3. **Get Free, Independent Advice First:** If you feel nervous about talking to the bank alone, contact **[MoneyTalks](https://www.moneytalks.co.nz/)** (0800 345 123). It is a free, confidential financial mentoring service funded by the Ministry of Social Development that can help you map out a budget or even advocate on your behalf with the bank. To help me give you more relevant information, **which bank is your mortgage currently with** , and do you expect this income drop to be **short-term (a few months)** or **long-term**?