We know that New Zealand winters can feel long and gosh this year it has been very wet!
All of New Zealand banks are looking to help and have provided low/no interest home loan options to help Kiwis live in healthier homes. This includes top ups for insulation, heat pumps, ventilation systems and so on. Not only that, but they are offered over a long loan term which mean less monthly repayments for you!
To take advantage of these home loan top-ups, you must already have your home loan with that bank or lender. However, you can move your mortgage to that lender to get access to their offer (although a loan establishment fee may be involved).
Here's a quick overview of what's on offer (as of July 2023):
Westpac
Westpac’s Warm Up loan top-up is interest free and you can borrow up to $40,000 over 5 years.
If you are unable to pay off the loan within the 5-year period, a default interest rate of 5% will apply to the outstanding balance.
What it can be used for:
A solar energy power system, including batteries
Heating, including heat pumps and wood burners
Insulation and ventilation
Double glazing
An electric vehicle charger.
Note that Westpac also offers a separate loan for electric vehicles.
ANZ
With the ANZ Good Energy home loan top-up you can borrow up to $80,00 to make your home more energy efficient. You can also use the loan for an electric or hybrid vehicle.
The loan has an interest rate of 1% and is repaid over a term of 3 years.
If you have not fully paid off the loan within this 3-year period, you can choose to refix at the bank’s fixed or floating interest rates.
What it can be used for:
Solar panels and batteries
A heat pump or water heating system
Insulation (including double glazing) and ventilation
A rainwater tank
An electric or plug-in hybrid vehicle (including an ebike) and an electric vehicle charger.
BNZ
The Green Home Loan top-up from BNZ allows you to borrow up to $80,000 over a 3-year term. It also has an interest rate of 1%.
If you cannot pay off the loan within 3 years, the loan can either be refixed to a higher rate or the bank’s floating home loan rate will apply.
What it can be used for:
Solar panels, batteries and inverters
A heat pump or water heating system (including a solar water heater)
Insulation and ventilation, including double or triple glazing
A rainwater tank
An electric or plug-in hybrid vehicle (including ebikes) and electric chargers.
ASB
ASB’s Better Homes top-up loan offers up to $80,000 at an interest rate of 1% fixed for a 3-year period for the purchase of better heating, insulation, solar energy, and more.
If you are not able to pay off the loan within this 3-year period, ASB’s variable rate applies.
What the loan can be used for:
Heating, including a heat pump system, wood burner or wood pellet burner
Insulation and double or triple glazing
Better ventilation, including extractor fans and ground moisture barriers.
A solar energy system including batteries and inverters.
An electric vehicle or plug-in hybrid.
Interested? Get in touch, we'd love to chat xox