If you’re looking to upgrade your home or car to more energy efficient options, banks offer green loans and mortgage top ups with super low interest rates to help with upfront costs.

If you are planning renovations or have older systems that are near the end of their life, it’s worth considering going electric. The upfront cost may be more, but electric systems are often cheaper to run and can save you money over time.

Learn more about the benefits of going electric

To help Kiwis make the move to more energy-efficient options, most New Zealand banks offer discounted financing options and home-loan top ups.

These loans are all slightly different, with varying interest rates and terms. But given many offers feature interest rates at 1% or even 0%, they could help you overcome the initial cost and save you money in the long run.

Induction cooktops.
If you’re renovating your home, green loans can help with things like induction cooktops. Induction cooktops are the most energy efficient option on the market, as well as the safest, healthiest and fastest tech available for cooking.

What’s covered

Each bank has specific criteria about what their sustainable finance options can cover. But most loans can help with things like:

  • buying energy-efficient appliances, like a heat pump (including hot water heat pumps) or an induction cooktop
  • making your home drier, warmer and more energy-efficient, by installing insulation, double-glazing and ventilation systems
  • switching to cleaner transport, like an electric bike, an EV, hybrid car, or smart EV charger
  • upgrading to renewable energy sources, like solar power systems and batteries
  • installing sustainable water systems, like rainwater tanks.
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Some green loans can help you install a smart charger in your home. Smart charging can reduce your charging time and overall household power costs. By setting it to charge during off-peak hours, it’s also the most climate-friendly option as it reduces emissions and pressure on the national electricity grid.

Finance options

Financing options vary from bank to bank depending on the:

  • type of loan
  • interest rate
  • maximum borrow amount
  • loan duration.

Many finance options come as a home loan top up, meaning your home loan must be with the same bank to receive the additional amount.

Interest rates for green loans tend to be much lower than for the rest of your home loan – usually around 1% but can go as low as 0%. But if you haven’t paid back the full amount by the end of the loan duration, interest rates will rise.

The maximum borrow amount tends to be between $50,000 and $80,000. Loan duration can be anywhere from three to ten years.

Professional advice

As with all big financial decisions, it’s good to get professional advice. You’ll also want to have a good look at your specific situation, now and in the future, to weigh up the potential benefits and risks.

Here are the available green loan options in New Zealand:

Westpac greater choices home loan(external link)

BNZ green home loan top-ups(external link)

ANZ good energy home loan(external link)

ASB better homes top up(external link)

Kiwibank sustainable energy loan(external link)

 

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The upfront cost of rooftop solar has come down considerably over the years, with costs potentially paid back in seven to eight years.** If rooftop solar hasn’t stacked up for you previously, it may make more financial sense now, especially if a green loan can help you get there.

Lower your monthly bills and carbon footprint

Introducing electric appliances, systems and vehicles into your home will likely halve your energy use and save you money over time. Even with the purchase price and installation costs factored in, moving to an all-electric household can be around $10,000–$20,000 cheaper over 15 years.* Electric products also produce far less emissions than ones that use fossil fuels, like gas or petrol.

Choosing to replace old appliances with electric ones and upgrading your home to more energy-efficient systems will give you more control over your energy use and set you up well for the future. Green financing and mortgage top ups at discounted rates can be a helpful tool to achieve lower emissions and cost savings.

Read next

  • Induction cooktops

    Induction cooktops are the most energy efficient option on the market, as well as the safest, healthiest and fastest tech available for cooking.

  • Buying a smart EV charger

    Home smart chargers will save time and money when charging your EV.

  • Rooftop solar

    Rooftop solar is a clean, low cost energy source available to New Zealand homes.