What is rates postponement?

Some councils let eligible homeowners, often older people, defer paying their rates. The postponed rates plus interest and fees build up and are usually repaid later, commonly from the sale of the home or the estate.

How much does rates postponement cost over time?

Because interest and fees are added to the deferred rates each year, the balance owed grows steadily. This calculator projects that balance so you can weigh the relief of lower outgoings now against the cost to your equity later.

Who offers rates postponement?

Availability and the terms vary by council, and there are eligibility rules. Check with your local council for the current scheme, interest rate and fees before relying on it.

Rates Postponement Calculator

This calculator helps older New Zealand homeowners, particularly those who are asset rich but income poor, understand rates postponement schemes that some councils offer, where rates can be deferred and repaid later, usually from the eventual sale of the home. You enter your rates and the postponement terms, and the tool projects how the postponed amount, plus any interest and fees, accumulates over time against your home value. The breakdown shows the rates deferred, the growing balance owed, and the impact on your eventual equity, helping retirees weigh the relief of lower outgoings now against the cost to their estate later, and make an informed decision about a little-understood option.

Annual rates postponed

Interest rate on postponed rates

Years postponed

Current home value

total owed after postponing for the period

Rates deferred$0

Interest and fees added$0

Share of home value

Each year rates are deferred and added to a balance that grows with interest. Councils may also charge fees, and terms and eligibility vary, so check your council current scheme. Postponement reduces the equity left for you or your estate. Estimate only, not financial advice.

How it works

Each year, the rates you defer are added to the postponed balance, and interest is charged on the growing total. Over time, the balance owed climbs well above the simple sum of the rates deferred, because interest compounds on the accumulating amount. The calculator projects the final balance after your chosen period and shows it as a share of your home value, so you can see how much of your equity the scheme would consume.

Worked example

Postponing $3,200 of rates a year at 6% interest for 10 years builds a balance of around $43,000, of which roughly $11,000 is interest on top of the $32,000 of rates deferred. Against an $800,000 home, that is about 5% of the value, the relief now coming at the cost of equity later.

Related calculators

Reverse Mortgage Calculator: borrowing against the home.
Home Equity Calculator: your equity.
Rates Revaluation Impact Calculator: revaluation effects.
Pension Calculator: retirement income.

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