# HL-Q185: Support after purchase Which bank is best for helping customers whose income has dropped and who are struggling with mortgage repayments? Borrower: Household facing an income drop [Study](https://nzbrands.ai/research/banking/home-lending/) · Collected 11 October 2026 ## chatgpt Answer ID: 754ab4e6-0c23-4088-b526-09664bb86114 In New Zealand, if your income has dropped and you're struggling to keep up with mortgage repayments, the best bank is usually the one that offers the most practical financial hardship support, communicates clearly, and is willing to restructure your loan around your new circumstances. I wouldn't judge banks solely by their interest rates or general customer reviews. What matters most is how they respond when you can no longer comfortably afford your repayments. When comparing banks, look for whether they will consider: - Temporarily reducing repayments to match your lower income. - Moving to interest-only repayments for a period, where appropriate. - Extending your mortgage term to reduce regular repayments. - Pausing or deferring repayments in eligible hardship situations. - Assigning a dedicated hardship specialist and clearly explaining the long-term costs of each option. These arrangements aren't guaranteed, and some can increase the total interest you pay. ## My top choices in New Zealand ## 1. Kiwibank Best overall on published support options Kiwibank explicitly lists a wide range of potential solutions: affordable repayment plans, interest-only repayments, extending the loan term, payment deferrals and loan restructuring. It also states there is no charge to apply for hardship assistance. [Financial hardship & assistance | Accounts](https://www.kiwibank.co.nz/help/accounts/financial-support/financial-hardship-assistance/) Mortgage hardship line: 0800 222 497 [Kiwibank hardship support](https://www.kiwibank.co.nz/help/accounts/financial-support/financial-hardship-assistance/) ## 2. ANZ ANZ specifically recognises reduced income as a reason to seek hardship assistance. It offers potential short-term relief of up to 90 days and home-loan restructuring, with a dedicated hardship team. Its published guidance also discusses extending the term or temporarily switching to interest-only payments. [Apply for financial hardship assistance](https://www.anz.co.nz/banking-with-anz/financial-hardship/how-to-apply/)[Help with financial difficulty](https://www.anz.co.nz/banking-with-anz/financial-hardship/how-we-can-help/)[Manage your home loan](https://www.anz.co.nz/personal/home-loans-mortgages/manage/) Hardship line: 0800 240 438 [ANZ hardship assistance](https://www.anz.co.nz/banking-with-anz/financial-hardship/) ## 3. Westpac Westpac publishes several possible forms of relief, including reduced repayments, extended loan terms and repayment pauses or deferrals. It assesses applications individually and explains that assistance can have longer-term interest costs. [Financial hardship support](https://www.westpac.co.nz/personal/life-money/navigating-trying-times/financial-hardship/)[How does hardship assistance actually work? - Help](https://www.westpac.co.nz/help/financial-hardship-faqs/how-does-hardship-assistance-or-relief-actually-work/) Financial Solutions: 0800 772 771 [Westpac hardship support](https://www.westpac.co.nz/personal/life-money/navigating-trying-times/financial-hardship/) ## 4. BNZ BNZ allows eligible customers to apply for a formal hardship variation, including extending the loan term or postponing payments. Its published process is clearly documented. [Financial hardship application](https://www.bnz.co.nz/support/everyday-accounts/managing-accounts/experiencing-financial-difficulty)[What you can do if you’re having trouble with home loan repayments](https://www.bnz.co.nz/personal-banking/life-moments/what-you-can-do-if-youre-having-trouble-with-mortgage-repayments) Customer assistance: 0800 375 007 [BNZ hardship application](https://www.bnz.co.nz/support/everyday-accounts/managing-accounts/experiencing-financial-difficulty) These rankings reflect the banks' published support options, not independently verified customer outcomes. There isn't enough comparable evidence here to establish which bank treats struggling borrowers best in practice. ## Your rights if your income has fallen In New Zealand, the Credit Contracts and Consumer Finance Act allows eligible borrowers facing unforeseen hardship to apply to their lender to change their loan arrangements. Depending on your circumstances, this can include extending the loan term, postponing repayments, or both. The bank must properly consider an eligible application, although it does not have to approve the changes you request. [Hardship applications](https://www.fma.govt.nz/business/services/consumer-credit/hardship-applications/)[Hardship and financial difficulty](https://www.bankomb.org.nz/guides-and-cases/quick-guides/lending/hardship-and-financial-difficulty) The Banking Ombudsman recommends contacting your lender early, before missed payments accumulate. You can also get free, independent and confidential help from [MoneyTalks](https://www.moneytalks.co.nz/). ## Which bank would I choose in your situation? I'd start with Kiwibank or ANZ based on their published policies, but I would not switch banks or refinance an existing mortgage just on that basis. A new lender may be reluctant to approve lending when income has fallen, so approaching your current bank is often the more practical first step. One question would help me narrow this down: Are you already with a particular bank, or are you looking to move your mortgage to a bank that may be more understanding about financial hardship? --- ## gemini Answer ID: 461be670-37f5-4344-9bdf-4b6177129271 Under New Zealand credit laws (specifically the Credit Contracts and Consumer Finance Act - CCCFA), **all registered banks and lenders are legally required to consider reasonable applications for hardship relief** if your income drops due to unforeseen circumstances like redundancy, reduced hours, illness, or relationship breakdowns. Because of this statutory obligation, there isn't a single "best" bank in terms of policy differences—**whichever bank holds your current mortgage is inherently the best (and usually only) place to start**, as they are the ones required by law to evaluate your application. However, major New Zealand lenders (such as ANZ, ASB, BNZ, and Westpac) approach customer support tools and guidance slightly differently: * **ASB:** Noted for tools like their *Support Finder*, which helps connect customers facing income drops or hardship with potential government benefits and services alongside internal restructuring options. * **Westpac:** Features dedicated digital application pathways via their banking app/website for financial solutions and structured processing timeframes. * **BNZ:** Frequently collaborates with community finance networks and budgeting services (such as Good Shepherd NZ) to provide holistic support for customers navigating severe financial strain. --- ### Standard Relief Options Offered by NZ Banks When you apply for hardship assistance, a bank will typically look at your overall financial position and may offer one or a combination of the following solutions: 1. **Temporary Payment Pause or Deferral:** Stopping or reducing mortgage payments for an agreed short-term window while you look for new employment or adjust. *(Note: Interest usually continues to accrue during this time, increasing the total long-term cost).* 2. **Extending the Loan Term:** Spreading your remaining balance over a longer period to lower your mandatory monthly repayments. 3. **Interest-Only Period:** Temporarily switching your mortgage from principal-and-interest to interest-only to drastically lower immediate cash flow requirements. --- ### Recommended Action Plan If your income has dropped and you are worried about upcoming mortgage payments, take these steps immediately: 1. **Contact your bank's Financial Hardship / Solutions team** before you miss a repayment. Reaching out early gives you significantly more options and protects your credit history. 2. **Prepare your numbers:** Have an accurate, realistic breakdown of your current household income and weekly/monthly living expenses ready to present to them. 3. **Utilize free independent budgeting support:** Reach out to **MoneyTalks** (a free New Zealand financial helpline funded by the government) at **0800 234 234** or via moneytalks.co.nz to help review your budget and advocate for you. Would you like help mapping out a temporary household budget to see what reduction in mortgage payments you would need to stay afloat? --- ## ai-mode Answer ID: 15fba4e6-af1d-4161-9b33-3dcc9b4dba16 In _New Zealand_ , there isn't a single "best" bank singled out by consumer advocates or regulators for mortgage hardship support. Under the **Credit Contracts and Consumer Finance Act (CCCFA)** , all major registered banks in New Zealand—including **ANZ** , **[ASB](https://www.asb.co.nz/banking-with-asb/our-commitments-to-customers-in-financial-difficulty.html)** , **[Westpac NZ](https://www.westpac.co.nz/personal/life-money/navigating-trying-times/financial-hardship/)** , **BNZ** , and **Kiwibank** —are legally required to have dedicated financial hardship processes. If your income has dropped and you are struggling with repayments, any major New Zealand bank will offer very similar statutory options: * * **Temporary payment pause or reduction** (giving you breathing room) * **Switching to interest-only repayments** for a set period * **Extending the total loan term** to lower regular installment amounts * **Restructuring or consolidating** debt where appropriate Help with financial difficulty | ANZ * Choosing or Assessing Support Because their toolsets and legal obligations under hardship guidelines are largely identical, the "best" bank in a hardship scenario is usually **the one holding your current mortgage**. Transferring a mortgage to a new bank while experiencing a drop in income is generally difficult, as banks tightly re-qualify new borrowers based on current (lower) earning capacity. If you are facing financial difficulty, independent and free financial mentoring services like **[MoneyTalks](https://www.moneytalks.co.nz)** can also help you evaluate your position before or during conversations with your lender. If you'd like, let me know: * Which **bank** your current mortgage is with * Whether your drop in income is **temporary** (e.g., parental leave, short-term illness, or job change) or **long-term** I can give you specific contact details and outline what documents your bank will likely require for a hardship application. --- ## ai-overviews Answer ID: 55ecc15d-b1ac-4bd1-a636-3a9731bf9320 In New Zealand, **there is no single "best" bank** for mortgage hardship support, as **all major Kiwi banks are legally required** under the Credit Contracts and Consumer Finance Act 2003 (CCCFA) to provide structured assistance. If an unexpected drop in income leaves a customer struggling with repayments, any New Zealand lender must formally consider an application for **"Unforeseen Financial Hardship"**. However, individual banks offer distinct tools, teams, and timelines to help navigate the crisis. How the Major NZ Banks Compare Bank| Key Feature / Standout Tool| How to Reach Their Hardship Team ---|---|--- **ASB**| **Support Finder Tool:** Connects both customers and non-customers to eligible government benefits/grants.| [ASB Financial Assistance](https://www.asb.co.nz/banking-with-asb/our-commitments-to-customers-in-financial-difficulty.html): 0800 27 27 35 **ANZ**| **Fast Initial Review:** Aims to review standard applications within 5 working days.| [ANZ Financial Hardship](https://www.anz.co.nz/banking-with-anz/financial-hardship/): 0800 240 438 **Kiwibank**| **Trauma-Informed Support:** Dedicated specialized care team to walk customers through tailored debt plans.| [Kiwibank Financial Support](https://www.kiwibank.co.nz/help/accounts/financial-support/financial-hardship-assistance/): 0800 113 355 **Westpac**| **Digital Applications:** Simple online and app-based hardship submission portals.| [Westpac Financial Hardship](https://www.westpac.co.nz/personal/life-money/navigating-trying-times/financial-hardship/): 0800 772 771 **BNZ**| **Self-Service Adjustments:** Allows eligible users to manually drop payments to the bare minimum via the app.| [BNZ Care Team](https://www.bnz.co.nz/support/everyday-accounts/managing-accounts/experiencing-financial-difficulty): bnzcare@bnz.co.nz Standard Relief Options Available No matter who the mortgage is with, borrowers can ask for variations to their home loan contract, such as: * **Interest-Only Payments:** Pausing principal repayments temporarily to significantly lower the monthly obligation. * **Loan Term Extensions:** Stretching out the remaining life of the mortgage (e.g., from 20 years to 25 years) to structurally lower regular payments. * **Repayment Deferrals ("Mortgage Holidays"):** Completely pausing payments for a short window. _(Note: Interest continues to accumulate and is added to the overall loan balance, making it more expensive in the long run)._ Step-by-Step Action Plan 1. **Act Immediately:** Contact the bank _before_ missing a payment. Legal protections under the CCCFA are strongest if the account is defaulted by less than two months or four payments. 2. **Bypass General Customer Service:** Ask immediately to speak directly with the bank’s **Financial Hardship** or **Customer Care** team. 3. **Gather Evidence:** Have proof of the income drop ready, such as redundancy letters, payslips showing reduced hours, or medical certificates. 4. **Seek Free Advocacy:** If negotiating feels overwhelming, the free national helpline MoneyTalks (0800 345 123) can provide a financial mentor to help deal with the bank directly. If you would like to look closer at a specific option, please tell me: * Which **bank** holds the mortgage? * Is the income drop likely to be **temporary** (e.g., parental leave, short-term injury) or **long-term** (e.g., redundancy)? I can help explain the exact application process or look into the financial impact of changing the loan structure.