Mortgage repayments

MSD must check whether the client qualifies for Accommodation Supplement. If the client is entitled to an Accommodation Supplement this must be granted before assessing whether the client qualifies for Temporary Additional Support.

If the client does not qualify for Accommodation Supplement, mortgage repayments for the home they occupy may still be included in Temporary Additional Support. This is limited to mortgage repayments towards:

• the mortgage principal (amount they borrowed) for the purchase of the home
• any mortgage principal for essential repairs and maintenance
• interest (amount the lender charges for providing the loan)

The minimum repayment is the least amount a homeowner must pay towards their mortgage principal and interest. This amount can change as interest rates change. Homeowners can only claim minimum mortgage repayments as an accommodation cost.

Note if a homeowner has a revolving credit mortgage, only repayments towards the principal and interest for the purchase of the home and any essential repairs and maintenance can be included.

Refinancing means transferring a mortgage to a new lender e.g. from one bank to another. When a homeowner refinances, they pay off their existing mortgage and take out a new one. A homeowner may borrow more than they need to pay off their mortgage to do things like consolidate debt, buy a car, or make improvements to their home.

Only repayments towards the mortgage principal for the original purchase of the home, any essential repairs and maintenance, and any related interest can be included in Temporary Additional Support. The homeowner must provide verification from their lender showing how much of their repayments relate to accommodation costs.

If a homeowner has joint ownership with one or more other people but they are the only owner living in the home, the actual costs they are paying can be included in Temporary Additional Support.

Note some homeowners have a mortgage through the Shared Equity Scheme administered by Kāinga Ora. Repayments on these mortgages are voluntary are not an accommodation cost.