Upgrading your home with cheap $$
You've probably heard that most of the big banks have finance offers to help with 'green' things. But what does that actually mean, what can you use the funding for, and how does it work?
Let's break it down as simply as possible.
What's available:
Westpac offers the Greater Choices Home Loan, which is a top-up for up to $50,000 interest-free for five years.
ASB offers the Better Homes Top Up, for up to $80,000 at 1% interest for three years.
ANZ has the Good Energy Home Loan: Up to $80,000 at 1% interest for three years.
And BNZ has the Green Home Loan top-up, with up to $80,000 at 1% interest for three years.
What can you use it for?
No, it's not just for solar or buying an EV! Whilst each of these schemes have their own terms and conditions, in general they can be used for:
Buying an EV, hybrid, or installing an EV charger
Installing solar systems and batteries
Buying and installing heat pumps (including hot water heat pumps for your water heating)
Insulation
Double-glazing
Ventilation
Rain water tanks
There's a number of uses that could help you to improve your home, add to its value, and make it a more liveable space.
Solar - is it worth it?
Investing in solar is a big up-front expense that, if done right, should slash your monthly power bill and pay dividends to you as time goes by. But every household's power usage is different - how can you be sure it's actually worth it?
Start by getting a copy of your power bill and speaking to a trusted solar installer. They'll be able to put together a plan that shows you how much it'll cost, and what you can expect from your solar system's performance - that'll help you to determine if it's worth it.
For many, the big question is whether or not you add a battery or not. Adding a battery adds to your up-front costs, but helps to build a system that can deliver power into your home when you most need it - and when your solar panels may not be generating.
For a medium-sized family, a panel system is usually around $10,000-$15,000, and adding a battery usually takes the cost to somewhere around the $20,000-$25,000 mark. This is just based on what I've seen from my clients utilising these loans over the years.
Things to note
In most cases, the bank will require the loan term to either match the offer period (i.e. three or five years), which will mean you'll pay the loan off very quickly (this depends on the bank, some may click the loan over to standard interest rates once the offer period ends). Whilst it's great to clear debt fast, it will mean higher repayments than if your loan was structured over a 'standard' 30-year loan term - so this can put pressure on repayments.
Further, it's worth noting that the finance won't be as fast to arrange as a standard car/credit card loan would be, because the loan is attached to your mortgage - so get in early and allow a good few weeks to get everything sorted if you're considering looking into this type of lending.
How do you apply?
That's easy! Just talk to me. In the first instance I'll help you to understand what your options are, and make sure the numbers work.
It's the same process we'd follow for a standard mortgage top-up, so I'll work with you to collect some information and documents, like payslips and bank statements. We'll also need a detailed quote for whatever you'd like to use the money for, to ensure we apply for the right amount.
I'll then liaise with your bank to get everything sorted, right through to getting the money paid out.
This isn’t personalised financial advice, and you shouldn’t act upon this information without seeking suitably qualified advice from a professional.
