COVID 19: Mortgage Holiday and Business Finance Support Schemes

Last week Hon Grant Robertson announced that all NZ banks will be offering Mortgage holiday and business finance Support schemes to cushion COVID impacts.

Most banks will be offering a six-month principal and interest payment holiday for people whose incomes have been affected by COVID-19 so they will not lose their homes as a result of the economic disruption caused by this virus.

Furthermore, for small to medium business owners The Business Finance Guarantee Scheme will provide short-term credit to cushion the financial distress on solvent small and medium-sized firms affected by the COVID-19 crisis.  The scheme will include a limit of $500,000 per loan and will apply to firms with a turnover of between $250,000 and $80 million per annum. The loans will be for a maximum of three years and expected to be provided by the banks at competitive, transparent rates.  The Government will carry 80% of the credit risk, with the other 20% to be carried by the banks.

Read here for further information or simply just contact your bank for more personal advice or information.