Know your options when it comes to financing your heating and cooling upgrades with our breakdown of each major bank’s financing options for healthier homes.
Banks are invested in ensuring more Kiwis are living in healthy homes. Old New Zealand homes were built differently back in the day and are notoriously under-insulated and under-prepared for our harsh weather conditions. The banks helping you out, also helps them out, protecting your largest asset from the damage mould and condensation can do.
More importantly though, warm, dry, insulated homes are better for our health and the environment. Glazing is the single biggest source of heat loss in a home, and single glazing is prone to condensation which leads to moisture in the air and black mould. None of which is any good for our lungs, or our planet.
Here we breakdown the ways you can take advantage of financing options available to help create a warmer, healthier environment for you and your family.
Please note, we can’t guarantee your financing will be approved by the bank or meet their differing criteria. We are simply making sure you have access to the right information to be better informed.
Financing Options from our Major Banks.
Most of New Zealand’s banks offer interest free or low interest loans to help Kiwis insulate and heat their homes with more generous terms than standard home or personal loans.
Each bank has different options and criteria for eligibility. You’ll need a quote from us to take to your bank of choice, which you can arrange here.
Westpac - The Winter Warm Up
An interest-free loan of up to $40,000 for five years is available for all current or new Westpac Choice home loan holders.
What does it cover?
A Westpac Warm Up Loan is available to people living in their own homes and to landlords. You can use it for any mix of insulation, eligible heat pumps, double glazing, ventilation, wood burners, electric vehicle chargers, solar power systems and batteries for storing power from solar (or other sources).
What else?
You’ll also have flexibility to make lump sum payments or pay the loan off earlier without prepayment costs with no establishment fee. After five years, an interest rate of 5% will automatically be applied to the remaining balance.
ANZ - Good Energy Home Loan
If you have a current home loan with ANZ you may be eligible for a top up of up to $80,000 at 1% interest for three years. If you apply for a new home loan, you can add on an energy home loan top up at the same time.
What does it cover?
The loan can cover any purchases covered within ANZ’s approved list of energy upgrades including, Heat pumps (single or ducted), insulation (walls, ceiling and underfloor), glazing (double, triple, or secondary upgrades), ventilation (positive or balanced pressure), water heating systems and heat pump or solar water heaters. Check out the full list.
What else?
If you’ve received a quote for an ANZ Good Energy Upgrade that’s more than the maximum amount of $80,000, you can still apply. The 1% interest rate will only apply up to $80,000 and the remaining will be subject to standard interest rates at the time.
When the three years are up, you can choose to fix at a special fixed interest rate (if you are eligible) or a standard fixed interest rate, or you can let your loan move onto the floating rate.
The ANZ Good Energy Home Loan is not available for business purposes or for new builds (until the new build lending is fully drawn).
The minimum top up rate is $3000.
ASB - Better Homes Top Up
If you have a current home loan with ASB you can top it up with up to $80,000 at 1% interest for three years.
What does it cover?
The loan can cover any purchases covered within ASB’s approved list of energy upgrades including, Heat pumps (single or ducted), insulation (walls, ceiling and underfloor), glazing (double or triple), ventilation (positive or balanced pressure), water heating systems and heat pump or solar water heaters. Check out the full list.
What else?
You must have a minimum equity of 20% for owner-occupied properties and 40% for investment properties, after including the amount of your ASB Better Homes Top Up. If you’ve received a quote that’s more than the maximum amount of $80,000, you can still apply. The 1% interest rate will only apply up to $80,000 and the remaining will be subject to standard interest rates at the time.
When the three years are up, you can choose to fix at a special fixed interest rate (if you are eligible) or a standard fixed interest rate, or you can let your loan move onto the floating rate.
BNZ - Green Home Loan Top-up
If you have a current home loan with ASB you can top it up with up to $80,000 at 1% interest for three years.
What does it cover?
The loan can cover any purchases covered within ASB’s approved list of energy upgrades including, heat pumps (single or ducted), insulation (walls, ceiling and underfloor), glazing (double or triple), ventilation (positive or balanced pressure), water heating systems and heat pump or solar water heaters. Check out the complete list.
What else?
The minimum top-up rate is $5,000. After the initial 3-year fixed rate term, the loan can be refixed, or BNZ’s home loan floating interest rate will apply.
Compare the Banks
| Bank | Term | Eligible products | Key terms |
|---|---|---|---|
| Westpac | 5 years | A mix of insulation, heat pumps, double glazing, ventilation, wood burners, solar power systems and batteries, as well as electric vehicle chargers | Up to $40,000, available to new or current home loan holders, no prepayment costs on lump sum payments, no establishment fees |
| ANZ | 3 years | Single or ducted heat pump, Ceiling, underfloor and/or wall insulation. Double, secondary or triple glazing. Positive or balanced pressure ventilation systems, including heat recovery options. Heat pump water heaters or solar water heaters. | Up to $80,000, must have a current home loan and be the homeowner or landlord, minimum loan amount is $3,000, prepayments are subject to eligibility criteria, you can apply multiple times so long as you don’t exceed the $80,000 threshold, your quote can be more than $80,000 but the special terms only apply up to $80,000 |
| ASB | 3 years | Underfloor, ceiling or wall insulation, professionally installed. Double, triple or secondary glazing, heat pump system, wood burner or wood pallet burner, electric or hybrid vehicles, EV wall charging units | Must have a current home loan and be the homeowner or landlord, you must have a minimum 20% equity as a homeowner or 40% as an investor, early repayment and establishment fees may apply |
| BNZ | 3 years | Single or fixed heat pumps, water heating, ceiling, wall or underfloor heating, double, triple or secondary glazing, ventilation, water tanks, solar panels, batteries and inverters, EV’s, E-bikes and electric chargers | Must have a current home loan and be the homeowner or landlord, minimum top up $5,000, establishment fees and prepayment fees apply, quotes can be over $80,000 but the special interest terms only apply up to $80,000 |
Where do I start?
Firstly, you need to be living in an older home that you are keen to renovate to apply for funding or home loan top ups. The financial assistance doesn’t apply to new builds which now come standard with heating, insulation and double-glazing. It’s older homes that need help reaching today’s standards for a healthier, more comfortable home.
Secondly, you’ll need a quote to secure financing. Talk to us for trustworthy, unbiased advice on the best way to get your home into better shape before winter sets in.
