Green Home Loans: How to Get 0% or 1% Finance for Home Upgrades & EVs 🌿

The "Eco" or "Green" Home Loan is a special loan top-up offered by the main banks, allowing you to borrow for specific sustainable upgrades at an incredibly low 0% or 1% interest rate. Here’s a simple breakdown of the best offers available in New Zealand right now.

The 0% Interest Deal: Westpac

Westpac's "Greater Choices" loan is the clear market leader with an unbeatable rate.

• The Deal: 0% interest, fixed for 5 years
  
• The Amount: Up to $50,000
  
• What it covers: Solar panels, insulation, heat pumps, double glazing, ventilation, EV chargers, and even hybrid or electric vehicles (EVs) purchased from a registered dealer.
  

The 1% Interest Deals: ANZ, ASB & BNZ

These three major banks offer a very similar and highly competitive 1% loan.

• The Deal: 1% interest, fixed for 3 years
  
• The Amount: Up to $80,000
  
• What it covers:
  

The Other Options: Kiwibank

Kiwibank's main offer is slightly different from its competitors.

• The Loan: Kiwibank "Sustainable Energy Loan"
  
• The Deal: This loan is offered at the bank's standard floating interest rate.
  
• The Bonus: For loans over $5,000, they provide a $2,000 cash contribution to help you pay it off, paid out over four years ($800 after year one, and $400 for the next three years).
  
• What it covers: It is more focused on energy systems like solar power, small-scale hydro, wind, and geothermal, and less on general heating or insulation.
  

Why You Still Need Advice

On the surface, Westpac's 0% deal looks like the obvious winner. But the "best" loan isn't always that simple.

The right choice depends on your specific situation:

• Are you an existing customer? Most of these loans are done as “top-ups" for existing customers. Would it make sense to move your entire $500,000 mortgage just to get a $40,000 top-up?
  
• What are you buying? Some banks require 20% equity for EV chargers, while others don't. The eligibility criteria for specific products (like rainwater tanks or ventilation) also vary.
  
• How much do you need? If your project costs $60,000, Westpac's $50,000 limit might not be enough, making the 1% for $80,000 from ANZ or ASB a more suitable option.
  

As a Mortgage Adviser, I can compare these options in the context of your entire mortgage and financial goals. We'll look at the total cost and structure to ensure you get the best overall deal, whether that's with your current bank or by moving to a new one.

Feel free to reach out if you'd like to explore which option is right for you!