Green Loans – Mortgage Top-Ups vs Grants vs 0% Credit Card Offers - The Definitive New Zealand Guide

Our guide unravels the intricacies of green energy solutions, focusing on home enhancements and eco-friendly vehicles., thoroughly examining the options of mortgage top-ups, government grants, and zero-interest credit cards.

Green Loans – Mortgage Top-Ups vs Grants vs 0% Credit Card Offers NZ

Updated 2 December 2024

Introduction

Green energy financing is about transitioning from traditional, polluting energy sources to cleaner, renewable alternatives.
This guide delves into the various types of financing available for energy-efficient heating, solar panels, insulation, and clean transportation solutions such as electric vehicles.
Our related guide, EV loans, prompted several banks and lenders to write to us asking to share details of top-up and interest-free deals with our users. This guide is specific to 'green' marketed loans, grants and interest-free offerings from a range of companies and organisations. We do not cover other financing options - our guides to EV loans, car finance and personal loans have specific details on such offerings.

Our guide covers:

Know This First: The main types of sustainable energy (or green loans) that you can get financing for include, but are not limited to:

Solar generation (e.g. solar panels)
Hydro, Wind, and Geothermal (e.g. small scale renewable energy generation)
Energy-efficient Heating and Insulation (e.g. ventilation systems)
Clean transportation (e.g. electric vehicle or hybrid cars or charging infrastructure)

MoneyHub Founder Christopher Walsh shares his views about Green Loans and the options available:

"Choosing between mortgage top-ups, government grants, and 0% interest credit card offers can be daunting in green financing. Each option has unique advantages and challenges, and the right choice depends on your financial situation and long-term goals.

For those considering mortgage top-ups, remember that they are essentially an extension of your mortgage. They can be a cost-effective way to finance larger green projects due to potentially lower interest rates than other types of loans. However, it's important to consider long-term cost implications, especially when the promotional interest rates end and standard mortgage rates apply.

For those who qualify, the government grants help offset the upfront costs of green upgrades. However, there are strict eligibility criteria, so it's essential to understand the details thoroughly.

As for 0% interest credit card offers, they can be tempting due to their immediate 'no interest' appeal, and some even offer 'no repayments'. But caution is key here. Once the interest-free period expires, the interest rates can be exorbitant. A clear repayment plan is vital to avoid falling into a debt trap - I've seen it far too often, and it's a huge source of profits for those offering 0% offers.

When navigating the landscape of green loans, it's crucial to look beyond the surface. Consider the immediate benefits, long-term financial impact, and feasibility. Make informed decisions by thoroughly evaluating each option against your financial situation and sustainability goals."

Christopher Walsh
MoneyHub Founder

Benefits of Green Energy Financing

There are a few main reasons and benefits why green energy financing is attractive:

Access to discounted funding.

Compared to standard renovation financing, green energy financing is usually cheaper (whether subsidised by businesses or through the government).

With the world (and particularly the New Zealand Government) trying to improve the living standards of Kiwis (not just from a clean green perspective, but also from the perspective of a healthy home), there are incentives in place to push consumers to move to cleaner greener alternatives (and for businesses to offer discounted financing for these efforts).

Reduced household energy costs in the long run.

One of the most significant benefits of green energy for Kiwi households is reduced energy costs in the long run. Solar and wind power are now cheaper than fossil fuels in many parts of the world, and battery storage technology is rapidly improving, making it more affordable to store renewable energy for use when it is needed. As non-renewables get less popular, they will become a more expensive source of energy.

Kiwis that invest in green energy (through transitioning and upgrading their home) can save a significant amount of money on their energy bills over the long term.

Reduced environmental impact.

One of the most important benefits of green energy is that it helps to reduce our environmental impact. By investing in green energy, Kiwi households can reduce their greenhouse gas emissions, air pollution, and water pollution. This can help to combat climate change and protect the environment for future generations.

Increased home value.

Given spending money to get a new heating or insulation system is a new renovation and is less likely to break in future (compared to the old system), it's generally seen as a positive sign if green energy improvements are made to a household, leading to an increase in the value of your home.

Improved indoor air quality.

Green improvements to things like ventilation systems can improve the indoor air quality of your home, which can lead to better health outcomes for you and your family.

Increased energy independence.

Green energy improvements can help you become more energy-independent and less reliant on the grid (especially if you can generate power via solar panels).

Green Loans - ANZ vs Westpac vs Kiwibank vs BNZ vs vs ASB

Option 1 - Home Loan Top-Ups for Green Loans

Almost every bank in New Zealand presents some variety of green financing through a home loan "top up" (effectively an additional loan that will sit on top of your mortgage). These top-ups are generally intended for home upgrades and sustainable/clean energy systems like solar panels, purchasing insulation or heating systems.
The terms of these loans vary, with some offering no interest for as long as five years and others carrying a fluctuating interest rate (which can be anywhere from 0% to 8% p.a., with the rates varying based on promotions and exclusive offers to some existing customerrs).
To benefit from these bank-specific loans, your existing home loan will often need to be with the specific bank that offers the home loan top-up. However, if your fixed loan term is close to ending, you can consider moving your mortgage to a bank which offers attractive green loans.
We've included a high-level table below detailing the most popular top-up loans, as well as descriptions below to explain the options in detail:

Bank	Interest Rate	Max Amount	Duration	Other Conditions
Westpac	0% p.a.	$50,000	Up to five years.	There is no establishment fee. Provides the ability to pay off the loan earlier without prepayment costs. Available to new or current Westpac customers. Westpac's Greater Choices page has more details
ANZ	1% p.a.	$80,000	Up to three years.	The home loan top-up is not available for business purposes or new builds (until lending for the new build is fully drawn). Minimum $3,000 loan amount. ANZ's Good Energy page has more details
BNZ	1% p.a.	$80,000	Up to three Years	The loan can be used for renewable energy, heating/insulation, water tanks or transportation options (such as EVs, electric bikes or chargers). BNZ's Green Loan page has more details.
ASB	1% p.a.	$80,000	Up to three Years	Minimum 20% equity required. ASB Better Homes Top Up page has more details
Kiwibank	Variable rate home loan (currently over 8% p.a).	Varies	Between 7 and 10 years.	Because it's not a special or discounted rate, there isn't a maximum amount via the Kiwibank sustainable energy loan. However, if you borrow more than $5,000, Kiwibank will contribute up to $2,000 over four years towards the cost of the sustainable energy system. Kiwibank's Sustainable energy loan page has more details

Know This First: Green loans via banks are usually only available if you have a mortgage with them. In most cases, banks offer green loans exclusively to existing mortgage customers. This is because the loan is often structured as an additional drawdown or top-up on your existing home loan. We look at alternative options below.

MoneyHub Founder Christopher Walsh shares his views about Mortgage Top-Ups for Green-Related Purchases:

"Understanding the true costs of mortgage top-ups for green-related purchases and the long-term financial implications many New Zealanders overlook is essential. While it's appealing to access funds for sustainable upgrades like solar panels or insulation through home loan top-ups, it's crucial to understand the eventual cost. Initially, these top-ups may offer attractive terms, such as no interest for up to five years. However, once this period lapses, the rates usually revert to standard mortgage rates, which can be as high as 8% or more.

This shift in interest rates is not just a minor bump; it's a significant financial strain over the remaining 10, 15 or 20+ years of a mortgage. The cumulative effect of these higher rates on your overall debt can be staggering.

For instance, a top-up with a 0% or 1% p.a. interest rate may seem cost-effective initially, but once the standard mortgage rates apply, you could end up paying far more than anticipated over the long haul.

Furthermore, these loan options often come with other limitations and conditions. For example, the borrowing amount may be capped, and specific terms apply to utilising these funds. Banks like Westpac and ANZ offer varying maximum amounts and conditions, so scrutinising these details is important.

The financial trade-off of switching your mortgage for a better green loan deal cannot be understated. The lower interest rates and higher loan amounts may seem enticing, but they come at the cost of potentially higher mortgage rates. It's a balancing act between immediate gains and long-term costs. Before committing, I suggest carefully weighing the total financial impact of these top-ups, especially the higher interest rates post the initial period. The key is not to let the lure of short-term benefits overshadow the long-term financial repercussions."

Christopher Walsh
MoneyHub Founder

Westpac vs ANZ vs BNZ vs ASB vs Kiwiank Home Loan Top-Ups:

More details: Westpac Greater Choices Home Loan

Overview:

Westpac's Greater Choices home loan extension comes interest-free with the ability to borrow a maximum of $50,000 across a 5-year term. If you fail to pay off the loan within these five years, a standard 'default' interest rate of 5% p.a. gets imposed on the remaining amount.
The Westpac Greater Choices loan allows you to spend on a variety of things, including “Healthy Homes” insulation related upgrades such as:

Solar power setups (inclusive of storage batteries).
Heating solutions like heat pumps and wood burners.
Ensuring insulation and proper ventilation.
Installing double-glazed windows.
Know This - Westpac provides a distinct loan tailored for electric vehicles, outlined on their website - Westpac Interest-Free EV Car Financing.

Criteria for Qualification

A prerequisite is having a mortgage with Westpac or showing readiness to transfer your existing mortgage to them.
For those residing in their homes, they should possess a minimum of 20% equity. For those holding it as an investment, equity should be at least 40%.

How does the Westpac Greater Choices Loan compare?

What We Like:

Compared to the other banks on this list, Westpac stands out as the clear winner for being the only bank to offer a 0% p.a. interest rate on their green energy loan (compared to 1% p.a. for most of the other banks). Additionally, the loan length (5 years) is significantly longer than some of the other banks (that usually last for around three years).
In other words, Westpac is letting you borrow up to $50 free for five years (with the only "catch" being that you'll likely need to be an existing Westpac customer or be willing to move your current mortgage to Westpac).
Additionally, you won’t pay any establishment fees for setting up Westpac’s Greater Choices home loan. You also won’t pay any penalties or additional costs for paying off your mortgage early (known as prepayment costs). While it may seem weird that the bank would charge you more fees for being diligent and paying off your mortgage early, most banks do this because the earlier and faster you pay off your mortgage, the less interest they earn from you as a customer (which they will have forecasted when they assessed your loan application).

What You Need to Be Aware Of:

One of the most notable downsides is the ceiling on the amount you can borrow. In contrast to other large incumbent banks, the $50,000 ceiling is much lower than other bank offerings (usually around $80,000+). As such, if you plan on doing significant renovations or improvements that are likely to exceed $50,000, it might make more sense to go with another provider (even if those loans have a higher interest rate).
Westpac's standard mortgage rates are routinely some of the highest out there per our mortgage rates guide. This means that while you are getting a discounted home loan top-up, you risk paying significantly more on a far larger borrowing amount (e.g. your mortgage) if you switch from another competitor, unless you get competitive mortgage pricing from Westpac.
Make sure to compare how much you seek to gain from the home loan top-up and compare this to the potential additional costs you'd incur by moving mortgages to Westpac. Check out the latest and best mortgage rates, as they often change without notice (especially when the OCR shifts around).

More details: ANZ's Good Energy Home Loan

Overview:

ANZ has a 'Good Energy Home Loan' offer, allowing you to procure up to $80,000 for enhancing your home's energy efficiency or for an electric/hybrid vehicle acquisition. Similar to other banks, this loan features a 1% p.a. interest rate and spans across three years for repayment.
If you don't pay back the full borrowed amount in the three-year period, you have the option to refinance at ANZ's ongoing fixed or variable interest rates.

Good Energy Home Loan Eligibility
There are a few specific intended use cases that you’re able to spend the loan capital on, including:

Installation of solar panels and accompanying batteries.
Heating mechanisms such as heat pumps or water heaters.
Insulation enhancements (double glazing included) and ventilation setups.
Incorporating a rainwater storage system.
Acquiring electric or plug-in hybrid transportation (e-bikes included) and electric vehicle charging stations.

Other Qualification Standards

You'll need to either be an existing ANZ mortgage holder or exhibit willingness to migrate to ANZ from wherever else your mortgage is held.
You’ll need a minimum equity down of 20% in your residence (e.g. max 80% LVR).
Other fees may apply.
Your intended purchase should align with ANZ's stipulated guidelines (which may change occasionally and are available on their website).

What We Like:

Like other banks, ANZ offers high flexibility and one of the highest amounts you can borrow (up to $80,000) alongside a reasonably competitive interest rate of 1% p.a. which is in line with most other banks.
ANZ is also in line with other banks in that you cannot only finance sustainable energy systems (like solar) and heating/insulation installation but also spend on an electric or hybrid vehicle.

What You Need to Be Aware Of:

However, compared to other banks, one of the most significant downsides is the potential penalties for paying off the loan earlier than expected - known as an "Early Repayment Recovery Fee". ANZ set out a few ways to get the loan ahead of time.

More details: BNZ's Green Home Loan Top Ups

Overview:

Mirroring ANZ's financial product, BNZ's Green Home Loan enables customers to secure up to $80,000, spread over three years, at an interest rate of 1% p.a. If the loan isn't settled within the set 3-year timeframe, you have the choice of renegotiating the loan at an elevated interest rate or transitioning to the bank's standard variable home loan rate.

Potential Uses Include:

Incorporation of solar panels, batteries, and inverters.
Heating solutions like heat pumps or water heaters, including solar water heaters.
Upgrades in insulation and ventilation, counting the addition of double or triple-glazed windows.
Installing a system for rainwater collection.
Procurement of electric or plug-in hybrid modes of transportation (inclusive of e-bikes) and corresponding charging stations.

Qualification Parameters:

Either already have a mortgage with BNZ or display readiness to transfer your existing mortgage to them.
Maintain a minimum of 20% equity in the property.
Ensure that the intended purchase adheres to BNZ’s guidelines, available for review on their official website.

What We Like:

The 1% p.a. interest rate is good and in line with other banks (and can be used for many different categories, like renewables, heating and insulation, water tanks, and electrification of transport. However, in contrast to other banks, fees are associated with setting up the Green Home Loan.

What You Need to Be Aware Of:

BNZ may charge new customers a setup fee of $150 and a possible $100 fee for existing BNZ customers (although, in some instances, this may be waived). BNZ also may charge early repayment fees (however, BNZ don't present the costs for this).

More details: ASB Bank's Better Homes Top-Up

Overview:

The 'Better Homes' from ASB provides up to $80,000 at a 1% p.a. interest rate, secured for three years (like other banks). Should you fail to pay off the loan within the stipulated 3-year window, the standard variable rate from ASB becomes applicable (which can be found on the ASB site).

Loan's Applicability:

Various heating and cooling systems, such as heat pumps, wood burners, or wood pellet heaters.
Insulation complemented by double or triple glazing.
Enhanced ventilation measures encompass extractor fans and barriers against ground moisture.
Comprehensive solar power setups, inclusive of batteries and inverters.
Electric and plug-in hybrid vehicles.

Criteria for Qualification

Your mortgage should either be with ASB, or you should demonstrate readiness to transfer it to ASB.
A minimum equity of 20% in your home is mandatory for primary residents and 40% for those owning investment properties.
Ensure the intended purchase aligns with ASB’s stipulations, detailed on their website.

What We Like:

ASB mirrors similar loan structures from ANZ and BNZ with 1% p.a. interest rates and a duration of 3 years.

What You Need to Be Aware Of:

The $99 top-up fee that may apply to apply for the loan (as well as any potential early repayment fees).

More details: Kiwibank’s Sustainable Energy Loan

Overview:

Kiwibank's Sustainable Energy Loan top-up offers a broader variety of sustainable energy system options than several of its rivals. However, it doesn't cater to home heating or insulation acquisitions.
The potential loan amount hinges on the fraction of your settled mortgage, your property's CV, and what Kiwibank deems you can repay without straining your finances. The loan term stretches between a minimum of 7 years to a maximum of 10 years. For the specifics, check out Kiwibank’s relevant terms and conditions.
Distinctively, Kiwibank doesn't provide a preferential interest rate compared to other banks. Its variable rate for home loans, currently found here, is applied.
Yet, for loans exceeding $5,000, Kiwibank pledges up to $2,000 towards your sustainable energy system's cost over four years: $800 after the first year and $400 annually for the subsequent three years.

Loan Utilisation Options Include:

Solar energy infrastructure
Mini hydro-power setups
Wind energy mechanisms
Geothermal energy installations.

Qualification Requirements

Either have your mortgage with Kiwibank or show willingness to shift to Kiwibank.
Retain a minimum of 20% equity in your residence.
Ensure your desired purchase aligns with Kiwibank’s stipulations, accessible on their website.

What We Like:

Unlike other bank offerings, Kiwibank enables you to spend on things unique like small-scale hydro, wind, and geothermal systems (as opposed to just solar). Additionally, for loans over $5,000,
Kiwibank effectively pays you up to $2,000 back. Regarding fees, if you’re an existing Kiwibank Home Loan customer, you won’t incur any fees for the home loan top-up.

What You Need to Be Aware Of:

One of the biggest drawbacks of Kiwibank’s Sustainable Energy Loan is that the interest rate is significantly higher than other home loan top-ups (e.g. high interest rates vs 1% p.a. with BNZ and ANZ or 0% p.a. in Westpac’s case).
The amount you can borrow is severely limited (at $5,000 versus $50,000 or $80,000 for other main banks).

Option 2 - Government Grant Programmes for Green Homes

The main government programme currently in place is the Warmer Kiwi Homes Programme:

More details: The Warmer Kiwi Homes Programme

Overview:

The Warmer Kiwi Homes Programme is an initiative by the New Zealand government to provide financial assistance for insulation and heating to homeowners with limited financial resources.
The core purpose of the Warmer Kiwi Homes programme is that every family should live in a comfortable, moisture-free home. Since inception, over 110,000 insulation and heater installations have been made across New Zealand and have made many families far happier in their residences.

What are the Key Benefits Covered by the Grants?

Between 80 - 90% of the overall expenses for ceiling and floor insulation in your house. In certain areas and places, local community groups' contributions might reduce your out-of-pocket expenses even further.
A maximum of 80% of the expenses for approved heating equipment in your residence, such as a main living area's heat pump or efficient wood/pellet burner. The maximum amount for heater assistance is $3,000 plus GST.

Am I Eligible for the Warmer Kiwi Homes Programme?
Two different eligibility tracks depending on whether you're looking for funding for insulation or heating:

1) Insulation Grant Requirements:

Reside in and own a house constructed before 2008.
Possess a Community Services Card or stay in a low-income zone (you can verify if your home is eligible using the EECA online eligibility form).
Your house shouldn't already have ceiling or floor insulation. (Prior grant recipients for different homes can still apply for their current residence.)

2) Heating Grant Requirements:

Reside in and own a property built before 2008.
Own a community services card or live in a designated low-income area (similar to above).
Your house should have ceiling and floor insulation that meets EECA standards. Governmentally insulated houses will be verified during heater grant applications. Otherwise, an EECA-approved provider will inspect for free.
Your residence shouldn't already have operational heating systems like heat pumps, wood or pellet burners, vented gas heaters, or centralised heating in any living space.

What Out of Pocket Costs am I Expected to Pay?
After grant deductions, you might still have some costs, but additional funds from community groups or non-profits could reduce these further. EECA will inform you about any residual costs you must pay during your application.

Insulation — Typically, costs range from $280 to $800, contingent on house size and insulation requirements.
Heat pump — Anticipate expenses between $400 and $700, depending on specifications.
Wood burner — Expenses can range from $1,000 to $3,000, influenced by the type and regional emission mandates.
Pellet burner — Costs might range between $1,000 and $3,000, varying with the burner type and regional guidelines.

Expanded Eligibility Criteria
In August 2023, the eligibility for insulation assistance was widened by the government, potentially benefiting an additional 58,000 homeowners. In the first instance:

Check your Eligibility.

Obtain a Quote: The installer will contact you for a no-obligation, free quote, informing you about payment alternatives and additional aid.
Schedule an Installation: Liaise with the installer directly. Sign a contract and settle the non-funded cost portion with them.

Must-Know Facts about the Warmer Kiwi Homes Programme

In cases where insulation isn't appropriate (e.g. if you don’t have enough space around the walls or ceilings), you might still qualify for a heating aid. It’s recommended to still go through the application process as an EECA-contracted insulation provider will evaluate your residence and let you know if this is the case.
The Warmer Kiwi Homes Programme commitment starts when you finalise an agreement with the service provider.
Installers can handle any required permits for wood or pellet burners.
You can discuss payment methods with the EECA-contracted insulation or heating installer when they undertake the work.
Presently, installation might take up to 4 months due to logistics and installer availability. You'll be updated on schedules post-application.
Funds for the Warmer Kiwi Homes Programme are limited and are typically distributed based on region. Not all regions will have available grants. Use the Warmer Kiwi Homes tool to see what's accessible in your area.
Some regions might not have grants for wood and pellet burners. The tool will show local contracted installers.
Wall insulation isn't part of the package.
Grants apply only to your primary residence, excluding holiday houses.

Option 3 - Green Financing Credit Card Options

An interest-free finance credit card lets you buy products or services from several providers with zero interest (and sometimes no payments at all) to pay over a set period. How long this period is depends on the outlet, ranging from 12 months to five years.
Several providers can provide heating, insulation and solar energy systems through four key credit card providers (detailed in the table below).
However, while there's no interest to pay during this period (and there may not be any obligation to pay any of the principal amount either during the period), all credit cards that offer this feature include an annual fee and an establishment fee for arranging long-term finance.
If you take advantage of one of these interest-free (and sometimes payment-free) finance deals, pay the entire balance off before the end of the interest-free period. If you don't, the card's standard interest rate will apply to the remaining amount (usually at least 25%+ p.a.). This is very expensive financing and unaffordable and therefore best avoided.

MoneyHub Founder Christopher Walsh shares his views about Credit Card Long-Term Finance Deals:

"I strongly advise caution when delving into green financing credit card options. The initial appeal of zero-interest finance for eco-friendly products like heating systems, insulation, and solar panels is undeniable. However, it's crucial to look beyond the surface. Despite offering an interest-free period, these cards have annual and establishment fees.

The real sting, however, lies in the exorbitant interest rates that come into play once the interest-free period ends – rates that often soar above 25% per annum. This isn't just costly; it's a debt trap waiting to snap. I've seen too many cases where everyday New Zealanders, enticed by 0% interest offers, find themselves stuck with high-interest debt, unable to clear their balances in time. It's a bad situation that can take years to get out of.

The limitations on the number of interest-free purchases and the varying lengths of these periods further compound the complexity. For example, not all offers extend to a 24-month interest-free window; many are significantly shorter. This time constraint and steep post-period rates can lead to an alarming cost escalation.

These 'cheap' financing options can be difficult for your financial well-being given the initial benefits can be completely overshadowed by towering interest rates and fees later on. If there's any doubt about your ability to repay the entire balance within the interest-free period, consider steering clear of these credit card options. The long-term financial repercussions of a 25%+ annual interest rate can be devastating. It's a high price to pay to go 'green', far exceeding the apparent savings of a zero-interest deal".

Christopher Walsh
MoneyHub Founder

Important - Using green financing via credit cards can be high risk:

What We Like:

Generally, 0% p.a. interest applies for upwards of 18 - 24 months if you buy from a specific supplier that has an agreement with the relevant credit card company (and pay off the full amount within the deal period.
Unlike other options, you don't have to have an existing home loan with a bank or live in a particular region of New Zealand to be eligible for interest-free financing.
You have a significant number of suppliers that you can choose from to source the right solar, heating or insulation product. Humm Group and Gem (Latitude) have partnerships with some of the largest energy-efficiency service providers in New Zealand (think HRV, Daikin, Harrison’s Solar, and DVS).

What You Need to Be Aware Of:

Once the interest-free period expires, a very high-interest rate applies to any amount outstanding (usually 20%+ p.a. interest rates per annum on the remaining balances).
All cards come with an annual fee (around $50) and an establishment fee (around. $50) for each long-term financing transaction.
There may be limits on the number of interest-free long-term financing purchases you can have with each supplier (e.g. you can't finance five solar panel projects with Harrison's Solar on the same credit card).
The interest-free period varies (e.g. not all interest-free periods will be 24 months; most will sit around the 12 to 18-month interest-free zone).

Bank	Annual Fee	Other fees	Interest Rate	Other Notes
Farmers Mastercard		A $55 Establishment fee is payable on your first long-term finance transaction. A $35 advance Fee is charged for all future LTF transactions.	0% p.a. on specific Long Term Finance deals (25.95% p.a. afterwards)	Long Term Finance Partners and Deals vary.
Flight Centre Mastercard	$50 annual account fee.	$55 establishment fee (for the first Long Term Finance transaction). A $35 advance fee is charged for each additional Long Term Finance transaction.	0% p.a. on specific Long Term Finance deals (22.95% p.a. afterwards)	Flight Centre has a variety of long-term finance deals that change often.
Gem Visa	$55 annual account fee (charged 50% every six months).	$55 establishment fee (one-off).	0% p.a. on specific Long Term Finance deals (28.99% p.a. afterwards)	Gem Visa has a variety of interest-free offers on its deals page. Gem Visa also offers six months interest-free on all purchases over $250.
Q Mastercard	$50 account fee ($25 fee on account opening and every six months after).	$55 establishment fee for long-term finance transactions	0% p.a. on specific Long Term Finance deals (27.89% p.a. afterwards)	Q Card has a number of no payments & no interest deals for up to 18-24 months on home improvements and solar spending.

Know This: The Humm Group, a consumer lending company founded in Australia, offers three credit cards on this list (the Flight Centre Mastercard, Q Mastercard and Farmers Mastercard). The fourth credit card on this list is offered by Gem Finance (acquired by Latitude Financial Services, headquartered and founded in Australia).

What are some examples of interest-free deals?
These are some of the deals that have been offered in the past. Note that interest-free long-term financing deals are constantly changing and may not be available when applying.

Supplier	What do they offer?	Example Offering on Qualifying Purchases
Harrison’s Solar	Solar panels, batteries, and inverters.	Up to 24 months interest-free and no payments
HRV	Ventilation systems and heat pumps	Up to 48 months interest-free
Heathcote Appliances	Whiteware (including air conditioning and heat pumps). Specific to the Waikato region.	Up to 3 -12 months interest-free
Daikin	Heat pumps and other heating systems.	Interest-free period on heat pumps (ranges by supplier)
DVS	Home ventilation systems.	Up to 6-24 months interest-free

Option 4: Personal Loans – A Cheaper Alternative to Drawing Down on Your Mortgage

If your home lender doesn't offer dedicated green loans, personal loans can provide a cost-effective alternative to drawing down on your mortgage. While mortgage rates are almost always lower than personal loan rates, the length of the repayment term plays a significant role in the total interest cost.
The example below compares a homeowner borrowing $40,000 for a green project using a personal loan and a mortgage drawdown.

1. Personal Loan:

Interest rate: 10% p.a.
Repayment term: 3 years
Total interest cost: $6,448

2. Mortgage Drawdown:

Interest rate: 6% p.a.
Repayment term: 20 years
Total interest cost: $27,644

Know This: A personal loan significantly reduces your total interest cost by repaying over a shorter period despite a higher interest rate. In the case above, the personal loan saves over $21,000 in interest. Furthermore, personal loans typically have fixed terms, allowing you to clear the debt faster than extending your mortgage term. This helps avoid prolonged financial commitments.

For homeowners, using a personal loan instead of a mortgage drawdown can save considerable money on interest costs. Our calculator below lists popular lenders who offer personal loans:

Enter Loan Information

Amount to Borrow

Repayment Period (Months)

Repayment Frequency:

Weekly Fortnightly Monthly

Must-Know Facts and Considerations about Green Energy Financing

1. It's Essential to compare interest rates and repayment terms from different lenders

You can sometimes get better rates than the displayed or carded rates if you contact the relevant green energy providers (banks, credit card companies, etc.), especially if they know you're in active discussions with their competitors.

2. Be aware of additional fees - they can add up

Whilst the incentives for green loans and green energy financing are very concessionary, it's easy to forget about when these offers end (whether in two years, three years or five years). If you miss the payment deadline, you will likely pay significantly more than you should (which will reduce any intended benefit you get from taking out the green loan first).
Keep track of your payments and repay your loan on time (or risk paying very high credit card or variable home loan rates).

3. Read the loan agreement carefully before signing it

Often, banks or credit card companies will bury specific terms around payment, notifications and any late penalties or fees which may catch you off guard.
If you're unsure what will happen in certain circumstances (such as if you miss a payment or if you need an extension), contact the relevant green loan financing provider before you sign the agreement. Once you sign and draw down the loan it's near-impossible to cancel, so make sure you understand the essentials upfront.

4. While technically a rebate, the Electric Vehicle Clean Car Discount is something to take advantage of

While not technically a green loan, the New Zealand government offers a Clean Car Discount that can reduce the purchase price of an electric vehicle by up to $8,625 (including GST, or $7,500 excluding GST).
This can complement (or stack with) green energy financing from traditional banks that offer electrification or loans that cover EVs, hybrids and charging infrastructure.

Frequently Asked Questions

Why do banks provide green energy loans?

Banks offer green energy loans for a few reasons:

They may receive direct incentives and subsidies from the New Zealand government to help them reach their mandate.
Their shareholders may demand a stakeholder or sustainability plan, which pushes companies to support a cleaner, greener New Zealand.
Because every other bank has a programme like this, and they want to consistently show they're "offering the best quality services" in line with other banks (In other words, they do it because their competitors do it).

Why do companies provide concessionary or discounted loans for green energy financing?

Often, companies offer these loans because they might be able to upsell you or get you to spend more on other products that you otherwise may not have thought to buy through them. Additionally, they secretly might hope you don't pay off the loans in full (and incur high interest).

What types of green energy improvements are eligible?

There is a wide range of green energy improvements that are eligible for bank loans and government grants, with some of the most common including:

EV or hybrid cars
Solar panels
Insulation
Heat pumps
Energy-efficient appliances
Solar, Wind or Hydro energy generation

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