ASB Compassionate Care

A free home loan benefit to help ease financial pressure if the unexpected were to happen.

What is ASB Compassionate Care?

It's hard to imagine no longer being around. If you were to pass away, you'd want to ease the financial pressure on your loved ones. That's why we've launched ASB Compassionate Care - a home loan benefit to help ease the burden of interest costs during a stressful time.

ASB Compassionate Care is a free ASB home loan benefit. This means if you were to pass away, an amount is paid to help with around 12 months of interest costs on your eligible ASB home lending. We've teamed up with AIA New Zealand Limited (AIA), to bring you this free home loan benefit. This benefit applies from 29 May 2020.

Benefits at a glance

  • You don't need to sign up or activate anything - we'll take care of that.

  • It helps ease the burden of interest costs during a stressful time.

  • ASB Compassionate Care is a first for Kiwis, we're the only bank in NZ to provide this benefit.

  • And best of all it's free. It comes at no cost to you.

What you need to know

Things to keep in mind:

  • The amount you'll receive depends on a few things, like your eligible home lending amount and interest rate. 
  • ASB Compassionate Care isn't a substitute for insurance cover that protects you and your family. As individual circumstances differ, you should seek appropriate professional advice.
  • Eligibility criteria and exclusions apply, so it's important you read the full terms and conditions.

You may be eligible if:

  • You have ASB owner-occupied home lending in your name.
  • You're a natural person borrowing in your own capacity (e.g. not a company or other entity).
  • You're aged between 18 and 64.
  • You don't fall into one of the exclusions to this benefit. 

How does it work?

If you're eligible and we're notified of your passing, we'll make a claim to AIA on your behalf.

If AIA accept our claim the benefit amount will be paid into your loan deduction account (see below).

The amount of the benefit is capped at $60,000 per eligible borrower.

Joint borrowers

  • If there is a surviving joint borrower, and the claim is accepted, we'll pay the benefit into the account that the home loan repayments come out of. This will be paid every fortnight or month in equal instalments for 12 months until paid out in full. 
  • Each eligible borrower is entitled to the benefit if they pass away, including if you pass away at the same or similar times.

Sole borrowers

  • If the claim is accepted, the benefit amount will be paid into the account that the home loan repayments come out of in one lump sum.

How we calculate the benefit amount

We'll calculate 12 months of interest costs on the eligible home lending at the date of the borrower's passing. How much is paid will depend on a few things - like the type of lending, the interest rate and the outstanding home loan balance. The amount of the benefit is capped at $60,000 per eligible customer.

See the example for how we would calculate the benefit if a borrower had lending for both owner-occupied and investment properties. More detail on how we calculate the benefit is included in the terms and conditions.  

You have total home lending of $750,000 secured against both your owner-occupied property and your investment property. 12 months of interest is calculated based on this amount. 

The total value of your secured properties is $1.5m, consisting of your owner-occupied property valued at $1,000,000 and your investment property valued at $500,000.

The value of your owner-occupied property is therefore approximately 67% of the value of all of your secured property. 

So, under ASB Compassionate Care, you will be entitled to a benefit of 67% of the total 12 months' interest.

Other ways we can support you

Financial difficulty

Life's full of ups and downs. If you're having trouble with repaying your home loan, talk to us about what we can do to help ease the burden.

Find out more

Deceased estates

When someone you love passes away, dealing with their estate can be stressful and sometimes complicated. We're here to help you through.

Find out more

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