Green home loans in New Zealand explained

How to access 0% or 1% finance for home upgrades and electric vehicles

Green home loans, sometimes called eco or sustainable home loans, allow homeowners to borrow money at very low interest rates to fund energy-efficient home upgrades and electric vehicles. Offered by major New Zealand banks as a mortgage top-up, these loans can be fixed at either 0% or 1% interest, making them one of the most cost-effective ways to improve your home and reduce long-term running costs.

Here is a clear breakdown of the leading green home loan options currently available in New Zealand, what they cover, and how to choose the right one for your situation.

Westpac green home loan

The 0% interest option

Westpac currently offers the most competitive green home loan in the market through its Greater Choices loan.

Key features

• 0% interest, fixed for five years
• Borrow up to $50,000
• Available as a mortgage top-up for eligible customers

What you can use it for

• Solar panels and battery systems
• Insulation and double glazing
• Heat pumps and ventilation systems
• EV chargers
• Hybrid and electric vehicles purchased from a registered dealer

This option is particularly attractive for homeowners planning energy upgrades or purchasing an electric vehicle and who can stay within the $50,000 lending cap.

ANZ, ASB and BNZ green home loans

The 1% interest options

ANZ, ASB and BNZ offer similar green home loan products, providing more borrowing flexibility at a slightly higher but still very low interest rate.

Key features

• 1% interest, fixed for three years
• Borrow up to $80,000
• Available as a mortgage top-up

What you can use it for

• Solar energy systems
• Heating, insulation, and ventilation
• Double glazing
• EV chargers
• Hybrid and electric vehicles

For larger projects, such as full home retrofits or combined upgrades and EV purchases, the higher lending limit can make these loans more suitable than the 0% option.

Kiwibank sustainable energy loan

A different approach

Kiwibank takes a slightly different approach with its Sustainable Energy Loan.

Key features

• Loan is offered at Kiwibank’s standard floating mortgage rate
• $2,000 cash contribution for loans over $5,000
• Cash is paid over four years, with $800 after the first year and $400 per year for the following three years

What you can use it for

• Solar power systems
• Small-scale hydro, wind, and geothermal energy solutions

This option is more targeted toward renewable energy generation rather than general home efficiency upgrades like insulation or heating.

Why getting advice still matters

At first glance, a 0% green home loan may seem like the obvious choice. However, the best option depends on how the loan fits into your wider mortgage and financial goals.

Things to consider include

• Whether you are an existing customer, as most green home loans are structured as mortgage top-ups
• Whether it makes sense to move a larger mortgage to another bank just to access a smaller green loan
• The specific items you are purchasing, as eligibility criteria can vary between banks
• Equity requirements, which may differ for items such as EV chargers or vehicles
• The total amount you need, particularly if your project exceeds individual lending caps

A mortgage adviser can compare green home loan options across banks, assess the true cost over time, and structure the lending in a way that works best for your overall financial position.

If you are considering home upgrades or an electric vehicle and want to understand which green home loan is right for you, professional advice can help ensure you get the most value from these low-interest opportunities.

For more information and to talk through how we can best help you, please contact us at info@krispedersen.co.nz or call the office at (09)4864719, and we can discuss what you want to achieve from there.

About the author: Kris Pedersen is a leading figure in mortgage advising and property investment, consistently ranked among the country's top six mortgage advisers for the past four years. With over a decade of experience, Kris is the preferred choice for investors seeking expert guidance to expand their portfolios. He shares his insights as a respected speaker at Property Investor Association groups, and his expertise extends to New Zealand and overseas property and finance markets, with regular features in NZ Property Investor Magazine. Kris Pedersen and Kris Pedersen Mortgages Limited are registered financial service providers, ensuring transparency and reliability in all financial dealings. Their credentials on the Financial Service Providers Register can be viewed here: https://fsp-register.companiesoffice.govt.nz/