Major banks offer mortgage suspensions to flood-affected East Coast residents

An area of Haumoana at Beach Rd, beside the Four Square, that is prone to coastal inundation. The house in the background is already long abandoned due to the risk of inundation. A slow-moving storm has smashed the Tairāwhiti and Hawke’s Bay regions overnight, bringing rough seas, gale-force winds and heavy rain, with more to come today. New Zealand Herald photograph by Paul Taylor 26 June 2024

Two major banks are offering a range of financial support including the suspension of home loan repayments to customers in the East Coast regions affected by wild weather this week that left widespread damage to hundreds of properties.

The region was inundated with rain on Wednesday, causing significant flooding for the second time in 18 months after Cyclone Gabrielle hit the region last year.

More than 400 properties in the Wairoa District were affected by flooding, with 100 being considered “significant”.

Helen Ryder, Westpac NZ managing director of consumer banking and wealth, said the bank was on standby to provide emergency financial support to business and consumer customers.

The options for business customers include:

• Suspension of principal payments on loans for up to three months.
• Deferred payment on credit cards for up to three months.
• A temporary overdraft facility.
• Access to term deposit funds for customers in financial hardship.

Consumer customers’ options include:

• Suspension of home loan payments for up to three months for individuals ahead on their repayments and who have a sufficient undrawn balance.
• Financial hardship assistance, which may include a reduction in loan repayment amounts for a period, access to term deposit funds or other support.

“It’s been a really tough 18 months for many people in the Hawke’s Bay and East Coast regions, and our thoughts are with them through this latest weather event. We’re here to help affected customers in any way we can,” Ryder said.

“Customers needing assistance should call our dedicated assistance team on 0800 738 691 to see what support they may be eligible for.

“And we encourage people to connect with friends and family where possible to ensure they’re safe and well.”

Meanwhile, ASB was also offering tailored packages, including suspension of home loan repayments and emergency overdraft facilities being made available for personal, business and rural customers.

Support would include:

• The option to suspend home loan principal repayments for up to three months.
• Immediate consideration of requests for emergency credit card limit increases and overdraft facilities, or other tailored solutions depending on the customer’s circumstances.
• Tailored solutions for eligible ASB business and rural customers, including access to working capital of up to $100,000.