The Government and banks have reached an agreement on how Earthquake Commission claims for the most seriously damaged houses with mortgages will be handled as a result of the Canterbury quake.
The deal ensures that homeowners facing a repair bill of more than $100,000 will not be financially disadvantaged by changes to their mortgage resulting from a commission payment.
Under the agreement, people can use their EQC payment to reduce their mortgage while waiting for repair bills to arrive or place it on deposit to earn interest.
Banks will absorb early loan repayment costs when a customer's mortgage changes because of a payment by the EQC.
Earthquake Recovery Minister Gerry Brownlee has congratulated the banks for working with the Government to support the people of Canterbury affected by the 7.1 magnitude quake on 4 September.
Mr Brownlee also named the seventh and final Earthquake Commissioner. Arihia Bennet has a background in social work and the business sector.