NZ Mortgage Repayment Holiday Calculator
Calculate the true cost of pausing mortgage payments in New Zealand — interest accrued, new loan balance, and the permanent increase in your monthly repayment after the holiday. Compares all five major NZ banks' rules, interest-only alternative, hardship vs planned holiday processes, and long-term cost scenarios. All figures in NZD.
$
%
$
months
years
Interest Accrued During Holiday
NZ$8,125
3 months at 6.5% on NZ$500,000
New Balance After Holiday
NZ$508,125
Interest Added to Loan
NZ$8,125
Original Monthly Payment
NZ$3,376
New Monthly Payment After
NZ$3,445
Monthly Payment Increase
+NZ$69/mo
Total Extra Interest Cost
NZ$10,286
Important: A repayment holiday is not a "free" pause. During the holiday, interest continues to accrue and is added to your loan balance. You will pay more in total over the life of your loan. Consider interest-only payments as a lower-cost alternative.
Advanced
Advanced Analysis
NZ bank rules comparison, holiday vs interest-only, hardship vs planned holiday
Each NZ bank has slightly different rules for repayment holidays. Use this table to compare and select your bank for specific details.
| Bank | Max Holiday | Key Eligibility | Credit File |
|---|---|---|---|
| ANZ | 6 months | Up to 6 months. Must be up to date on payments. Available for owner-occupied and investment. | Properly arranged holiday should not affect credit file — marked as approved arrangement |
| ASB | 6 months | Up to 6 months. Must have made at least 12 months of repayments. Contact home loan team. | No negative credit file impact if correctly arranged |
| BNZ | 6 months | Up to 6 months. Assessment on a case-by-case basis. | Approved holidays not reported negatively |
| Westpac NZ | 3 months | Up to 3 months standard. Up to 6 months in hardship situations. | No negative credit reporting for arranged holidays |
| Kiwibank | 6 months | Up to 6 months. Must be current on repayments and have sufficient equity. | Approved repayment holidays not reported as arrears |
ANZ — Details
Eligibility: Up to 6 months. Must be up to date on payments. Available for owner-occupied and investment.
Credit reporting: Properly arranged holiday should not affect credit file — marked as approved arrangement
Hardship support: Separate hardship process via dedicated team. May include rate concession.
Your Holiday Cost ({holidayMonths}mo)
NZ$8,125
Interest added to loan
New Balance
NZ$508,125
After holiday
New Monthly After
NZ$3,445
Increased due to higher balance
Eligible at Selected Bank?
Likely Yes
Pro
Professional Simulator
Long-term cost of 6-month holiday, credit reporting analysis, alternatives comparison
A 6-month repayment holiday on a large NZ mortgage can add significant costs. See the full long-term impact compared to no holiday.
No Holiday — Continue Repayments
NZ$3,376/mo
Balance stays at NZ$500,000
Payment stays at NZ$3,376/mo
Loan paid off on schedule
Payment stays at NZ$3,376/mo
Loan paid off on schedule
6-Month Holiday — Full Impact
NZ$3,514/mo
New balance: NZ$516,250
Interest added: NZ$16,250
Payment increase: +NZ$138/mo
Interest added: NZ$16,250
Payment increase: +NZ$138/mo
6-Month Interest Accrued
NZ$16,250
At 6.5% on NZ$500,000
New Loan Balance
NZ$516,250
After 6 months capitalised
Payment Increase
+NZ$138/mo
After resuming repayments
Estimated Extra Total Cost
NZ$40,649
Over remaining loan life (approx.)
| Holiday Length | Interest Added | New Balance | New Monthly | Monthly Increase |
|---|---|---|---|---|
| 1 month | NZ$2,708 | NZ$502,708 | NZ$3,399 | +NZ$23 |
| 2 months | NZ$5,417 | NZ$505,417 | NZ$3,422 | +NZ$46 |
| 3 months (yours) | NZ$8,125 | NZ$508,125 | NZ$3,445 | +NZ$69 |
| 4 months | NZ$10,833 | NZ$510,833 | NZ$3,468 | +NZ$92 |
| 5 months | NZ$13,542 | NZ$513,542 | NZ$3,491 | +NZ$115 |
| 6 months | NZ$16,250 | NZ$516,250 | NZ$3,514 | +NZ$138 |
How to Use This NZ Repayment Holiday Calculator
Enter your loan balance, interest rate, current monthly payment, and the number of months you want to pause repayments. The calculator shows the interest that accrues during the holiday (added to your loan), your new balance, and the increased monthly payment after the holiday ends.
Before Taking a Repayment Holiday
- Contact your bank at least 1–2 weeks before payments are due — never simply stop paying
- Ask your bank about interest-only periods as a lower-cost alternative
- Check whether you qualify — most banks require at least 12 months of repayment history
- Understand the clawback of capitalised interest — your balance grows during the holiday
- If in genuine financial hardship, ask specifically about the hardship team — different rules and more options apply
The Pro tier compares all five major NZ banks' rules, credit reporting implications, and four alternative options to a full holiday that may achieve the same cash relief at lower total cost.
The Formula
Monthly Interest Rate = Annual Rate ÷ 12
Interest Accrued During Holiday:
= Loan Balance × Monthly Rate × Holiday Months
New Balance After Holiday:
= Original Balance + Interest Accrued
New Monthly Payment (after holiday):
= New Balance × r × (1+r)^n / ((1+r)^n − 1)
where r = monthly rate, n = remaining months − holiday months
Payment Increase = New Monthly − Original Monthly
Interest-Only Alternative Payment = Balance × Monthly Rate
Interest Accrued During Holiday:
= Loan Balance × Monthly Rate × Holiday Months
New Balance After Holiday:
= Original Balance + Interest Accrued
New Monthly Payment (after holiday):
= New Balance × r × (1+r)^n / ((1+r)^n − 1)
where r = monthly rate, n = remaining months − holiday months
Payment Increase = New Monthly − Original Monthly
Interest-Only Alternative Payment = Balance × Monthly Rate
During a repayment holiday, interest accrues daily on the full outstanding balance. This interest is capitalised (added to your loan) at the end of the holiday. Because your new balance is higher and you have fewer months remaining, your post-holiday payment will be higher than before. The longer the holiday, the larger the increase.
Example
Tim and Claire — 3-Month Holiday on $520,000 Loan in Wellington
Tim is taking a 3-month sabbatical and wants to pause mortgage payments. Their loan is $520,000 at 6.8% with 24 years remaining.
| Loan Balance | $520,000 |
| Interest Rate | 6.8% p.a. |
| Original Monthly Payment | $3,612/mo |
| Holiday Length | 3 months |
| Monthly Interest | $520,000 × 6.8% ÷ 12 = $2,947/mo |
| Total Interest Accrued (3 months) | $8,840 |
| New Balance After Holiday | $528,840 |
| New Monthly Payment | $3,679/mo (remaining 21yr 9mo) |
| Payment Increase | +$67/mo |
| Alternative: Interest-Only 3 months | $2,947/mo — saves $665/mo vs full payment |
| Tim's decision | Interest-only — saves $8,840 in capitalised interest |
Tim switched to interest-only for 3 months instead of a full holiday. He paid $2,947/mo instead of nothing, but avoided $8,840 in capitalised interest and the permanent payment increase of $67/mo.
Frequently Asked Questions
Most major NZ banks allow repayment holidays of 1 to 6 months for standard planned breaks. ANZ, ASB, BNZ, and Kiwibank typically allow up to 6 months. Westpac NZ offers up to 3 months as standard. In genuine financial hardship situations, the duration can extend beyond 6 months under formal hardship arrangements mandated by the Credit Contracts and Consumer Finance Act. Always contact your bank to confirm what they offer for your specific circumstances.
A properly arranged repayment holiday — where you contact your bank in advance and receive formal approval — should not negatively affect your credit score. The arrangement is recorded as an approved pause, not as arrears or default. However, if you simply stop making payments without arranging a holiday first, those missed payments will be reported to credit bureaus as late or missed payments, which can significantly damage your credit score. Always contact your lender before missing any payment.
In a full repayment holiday, you make no payments at all — both principal and interest payments are paused. Interest continues to accrue and is added to your loan balance (capitalised), increasing the amount you owe. With interest-only payments, you pay just the interest portion each month — typically 60% to 80% less than your full principal and interest payment. Your balance does not grow, and you resume normal payments afterwards with no change. Interest-only is almost always the better option because it provides significant cash relief with no long-term cost penalty.
The Credit Contracts and Consumer Finance Act (CCCFA) requires all NZ lenders to consider hardship applications in good faith. Under section 55 of the CCCFA, if you are experiencing unexpected hardship (such as illness, redundancy, or relationship breakdown), you can apply for a variation of your loan terms. The lender must acknowledge your application within 5 working days and make a decision within 20 working days. If they refuse, you can take the matter to the Financial Dispute Resolution Service at no cost to you.
After a repayment holiday, your loan balance is higher (due to capitalised interest) and you have fewer months remaining on your term. This means your new required monthly payment will be higher than before. The exact increase depends on how long the holiday was, your interest rate, and how much time remains on your loan. For example, a 3-month holiday on a $500,000 loan at 6.5% would typically increase your monthly payment by $40 to $80 per month for the remainder of the loan term.