Home maintenance can be costly, especially when making eco-friendly upgrades. Many New Zealanders are interested in enhancing their homes with sustainable features but lack the funds to make these long-term investments in home health. As a solution, numerous banks and non-traditional lenders in New Zealand have introduced “green loans” as part of their financial product offerings. These loans, commonly known as “green home loans,” are designed to assist Kiwis who wish to make energy-efficient or eco-friendly home improvements.
Green home loans offer incentives to invest in sustainable upgrades such as solar panels, insulation and heat pumps by providing lower interest rates and more favourable terms than traditional home loans. These financial benefits make it easier and more affordable for homeowners to implement environmentally friendly changes.
The benefits of eco-friendly homes are significant, both for the environment and homeowners:
Environmental Benefits
Eco-friendly upgrades significantly reduce carbon footprints and improve environmental protection. Features like insulation, solar panels and LED lighting can substantially decrease energy consumption and carbon emissions.
Lower Energy Bills
Eco-friendly upgrades decrease energy consumption and monthly utility bills. The initial investment in improvements like double glazing, insulation, or efficient heating systems pays off in the long run. These upgrades make homes warmer and drier. They require less heating or cooling, resulting in cost savings over time.
Increased Home Value
Eco-friendly improvements can boost the resale value of a property. Well-insulated homes are in high demand in New Zealand. Buyers are often willing to pay more for warmer, energy-efficient houses. Additionally, environmentally conscious buyers prioritise homes with sustainable features, giving your property an advantage in a competitive real estate market.
Improved Health
Poorly insulated, damp, and draughty homes can lead to various health issues. Upgrades like air-sealing, ventilation systems and air purifiers enhance indoor air quality, reducing the risk of asthma, respiratory problems, and susceptibility to illness.
Enhanced Comfort
Eco-friendly upgrades ensure warm, dry, soundproof, and comfortable living spaces. Every New Zealander deserves a warm home in winter, free from draughts, dampness, and cold, and easy to cool in summer.
To obtain a green home loan in New Zealand, various banks and financial institutions offer options tailored to eco-friendly projects:
Kiwibank
Kiwibank offers the “Sustainable Energy Loan” for installing eligible sustainable energy systems, such as solar power, small-scale hydro, wind energy, or geothermal resources. Kiwibank provides up to $2,000 over four years for systems costing more than $5,000 and waives the home loan top-up fee for existing customers.
Westpac
Westpac provides the “Warm Up New Zealand” loan, assisting homeowners with insulation and heating improvements. The loan offers up to $40,000 at an interest-free rate for up to five years, covering insulation, heat pumps, double glazing, ventilation, wood burners, solar power systems, batteries and electric vehicle chargers.
ANZ
ANZ offers the “Good Energy Home Loan” for energy-efficient home improvements. Borrowers can access up to $80,000 at a low-interest rate of 1.00% for three years. Eligible upgrades include heat pumps, insulation, glazing, ventilation, water heating, solar panels, solar batteries, rainwater tanks, and green transportation options like electric vehicles and chargers.
BNZ
BNZ provides “Green Home Loan” top-ups, allowing borrowers to make up to $80,000 worth of home upgrades and pay just 1% interest for the first three years. Eligible upgrades encompass renewable energy systems, heating and insulation improvements, water tanks and electric transport options such as EVs, chargers and electric bikes.
When seeking a warmer and drier home, explore these low-interest loan options first. If considering a new home purchase, take note of existing energy-efficient upgrades, as they may provide negotiation opportunities to secure a better price.