Mortgage Repayment Holiday Calculator

This calculator shows the real long-term cost of taking a mortgage repayment holiday in New Zealand, so you can weigh short-term relief against what it adds to your loan. A repayment holiday, sometimes called a payment deferral, lets you pause or reduce your repayments for a set period, usually during redundancy, illness or another temporary financial squeeze. It feels like breathing room, but the lender does not waive the interest. It keeps accruing on your balance and is added to what you owe, so you pay interest on that extra interest for the rest of the term. You enter your current mortgage balance, your interest rate, how many months the holiday runs for, and the years remaining on your loan. The calculator returns the interest added during the holiday, your new, higher balance once it ends, and the extra cost over the remaining term once that bigger balance is repaid at your normal rate. Use it before applying for a holiday to see whether a shorter break, or reduced repayments instead of none at all, would leave you better off. The longer the holiday and the higher your rate, the more the pause costs, and the extra cost is usually well above the interest added during the holiday itself. This is an estimate based on the figures you enter, not a loan offer or advice from your lender.

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Assumes interest accrues and compounds onto the balance during the holiday, then the loan is repaid over the remaining term. A holiday can prevent missed payments in hardship, but adds to the lifetime cost. Estimate only, not a loan offer.