Rates Postponement Calculator

This calculator projects how a council's rates postponement scheme affects your finances over time, helping older New Zealand homeowners, particularly those who are asset rich but income poor, weigh the relief of deferring rates now against the cost to their equity later. Some councils allow eligible homeowners to postpone paying their rates, with the deferred amount plus interest and fees usually repaid from the eventual sale of the home or the estate. You enter the annual rates you want to postpone, the interest rate charged on the postponed balance, the number of years you plan to defer, and your home's current value. The calculator compounds the deferred rates and interest year by year and returns the total balance owed after the chosen period, split into the rates deferred and the interest and fees added on top, plus that balance's share of your home's value, so you can see how much equity the scheme would consume. A worked example shows that postponing $3,200 a year at 6% interest for 10 years builds a balance of about $44,700 against an $800,000 home, around 5.6% of its value. Use it to compare different postponement periods, interest rates or annual amounts before committing, and remember that terms, interest rates, fees and eligibility vary by council, so check the current scheme with your local council. This is an indicative estimate only, not financial advice.

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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.