Hope Family Funeral Services funeral director Kathy Sleep said it was an "anxious and scary time" as going to alert level 3 would have a significant impact on grieving families.
Sleep said while there had not been any postponements yet, there was one funeral service due to take place next week involving a woman in her 70s who died on July 31.
She said the woman's daughter, who flew into the country from Australia last Thursday, was in an isolation facility, meaning she was not able to see her mother nor be there to comfort her father and other relatives.
Sleep said whether the funeral could still go-ahead depended on what the Government announced today. "If we do move to alert level 3 it would immediately change the bubble-limit to 10 people and also limit people's ability to have as much contact with their loved ones.
"It would definitely be a totally different ball game," she said.
"It's also an anxious time for funeral directors as we're all about helping people to cope as much as possible and it means there are no hugs and restricted touching of loved ones."
Paul Gilmore, manager of Jones and Company Funeral Services in Tauranga, said so far there had not been any funeral service cancellations or postponements.
"But one family had changed their minds over holding the traditional refreshments after the service to ensure social distancing rules were adhered to."
Gilmore said it was an "upsetting and very stressful time" for everyone, particularly those wanting to farewell their loved ones and for funeral directors caring for these families.
"We're all hoping for the best but assuming the worse," he said.
Todd Gower, co-owner of Rotorua's Collingwood Funeral Home, said while there had been no postponements yet they would happen if the region moved to alert level 3.
"It's just crazy. We're keeping a very close eye on what is happening, as it's a situation which is evolving quickly."
Gower said the most difficult thing for everyone was that the grieving process had changed again, with the limit of up to 100 mourners at funeral services imposed at level 2.
"It's also difficult and stressful for funeral directors needing to have that conversation with families but it's the sad reality of what the whole country is facing."
Gower said there was a growing trend of people tuning into funeral services via live-streaming.
"Currently 60 per cent of our services have a live streaming component," he said.
Legacy Funerals general manager Kiri Randall said there had been one service that had been postponed for a memorial service to be held later.
Randall said at this stage another funeral service planned for today would proceed as the mourners gathering were within the 100 person limit.
"We are working closely with families to ensure we can accommodate their needs but also abide by the rules set down by the Funeral Directors of New Zealand Association."
Whakatane-based Willetts Funeral Service owner Steve Butler said so far there had been no services postponed but he expected that would change under alert level 3.
"Most of our families have already limited their numbers either having invitation-only services and others deciding to hold smaller services and a bigger memorial later," he said.
"It doesn't look good. Like everyone else, we're bracing ourselves for what happens next."