The Big Banks Helping you Create a Clean Energy Home.
Kiwi homes are notoriously inefficient when it comes to heating and energy. Warmth is going out the window in our old homes with barely enough insulation or ventilation to keep houses warm and dry.
The New Zealand Government has created a number of new initiatives to remedy New Zealand’s cold, damp problem and our major banks have followed suit, making it easier for homeowners to create warmer, more energy efficient homes. It’s in your bank’s best interest to protect our largest assets and for the sake of our health and sustainability, it’s important to turn our old builds into warm, dry, green homes.
Most major banks offer ‘healthy homes’ lending, available as a top-up to your mortgage. These incentivised loans also extend to offering financial help for more sustainable living including solar power and EVs.
Solar panels and batteries are a cost effective way to become more energy efficient. Once the panels are installed, the ongoing maintenance is minimal, but the rewards are significant with robust savings on electricity each year.
The money you save installing solar can potentially offset your borrowing costs or at least significantly decrease your repayments. Solar panels have reduced in cost a lot over the years, and batteries are now a much more affordable option to store unused energy.
Solar energy can also increase the value of your home in the long run, making it a worthwhile investment.
Here we’ve made a handy breakdown of all of the financing options available from New Zealand’s major banks. We suggest talking to your mortgage advisor for financial advice on if a clean energy loan is right for you.
Know your financing options.
Most of New Zealand’s big banks are offering interest-free or low interest loans to make Kiwi homes warmer and dryer but these loans also include solar panel systems and EVs to make your home more sustainable and energy efficient.
Each bank has its own criteria for approving lending and you’ll need a quote to take to your bank to start the process. You can call us to arrange a site visit and an obligation free quote.
Westpac - The Winter Warm Up
An interest-free loan of up to $50,000 for five years for heating, insulation and clean energy solutions, including solar.
WHO IS ELIGIBLE?
All current or new Westpac Choice home loan holders. Find out if you qualify.
THE FINE PRINT:
You’ll have the 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
A good energy home loan top-up of up to $80,000 at 1% interest for three years for renewable energy and healthy home solutions.
WHO IS ELIGIBLE?
Current or new home loan customers. If you apply for a new home loan, you can add on an energy home loan top up at the same time. Find out if you qualify.
THE FINE PRINT:
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 three years is 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
A home loan top up of up to $80,000 at 1% interest for three years for healthy home upgrades including solar.
WHO IS ELIGIBLE?
You must be a current ASB home loan customer and 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. Find out if you qualify.
THE FINE PRINT:
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 three years is 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
An existing home loan top up of up to $80,000 at 1% interest for three years for renewable energy upgrades, including solar.
WHO IS ELIGIBLE?
Existing home loan customers. Find out if you’re eligible.
THE FINE PRINT:
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.
Kiwibank - Sustainable Energy Loan
Existing customers can top up their home loan for sustainable energy systems, plus Kiwibank will put money towards your chosen solution to help you pay it off faster. There is no special interest rate.
WHO IS ELIGIBLE?
New or existing Kiwibank home loan customers. Find out if you qualify here.
THE FINE PRINT:
The loan can be used for solar power, small-scale hydro, wind energy or geothermal resources. If you borrow more than $5,000 Kiwibank will contribute up to $2,000 over four years towards the cost of your chosen system. $800 at the end of the first year and $400 at the end of each of the following three years.
The Sustainable Energy Loan is a top up with a cash back offer, there is no special interest rate, and the loan is placed on Kiwibank’s variable interest rate.The minimum loan term is seven years and the maximum term is 10 years.
If you are a Kiwibank Home Loan customer they will waive the home loan top up fee.
Compare the Banks for Renewable Energy Loans.
CLEAN ENERGY FINANCING INCLUDES SOLAR PANELS, BATTERIES, PLANNING AND INSTALLATION.
| Bank | Term and Interest Rate | Key Terms |
|---|---|---|
| Westpac | 5 years + 0% | Up to $50,000. Available to new or current home loan holders. No prepayment costs on lump sum payments. No establishment fees. |
| ANZ | 3 years + 1% | Up to $80,000. Must have a current home loan and be the homeowner or landlord. Minimum loan amount is $3,000. You can apply multiple times so long as you don’t exceed the $80,000 threshold. Prepayments are subject to eligibility criteria. Your quote can be more than $80,000 the special terms only apply up to $80,000. |
| ASB | 3 years + 1% | 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 + 1% | 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 terms special interest terms only apply up to $80,000. |
| Kiwibank | Variable rate | Over four years you can receive up to $2,000 cash back to help pay your loan off quicker if you borrow $5,000 or more. Your top-up fee will be waived if you’re an existing Kiwibank home loan holder. The minimum loan term is seven years and the maximum term is 10 years. |
Where do I start?
The clean energy loans only apply to renovations of older homes to help reach today’s energy efficiency standards.
You will need a quote to show your bank to begin the application process. Talk to us to arrange a site visit and assess the best plan for solar at your place.