What is EV loan?
Here's your latest newsletter from NZ Mortgage Advice where we dive into the sustainable energy loans that some lenders are currently offering.
You may not be aware however, the NZ main banks have recently introduced special offers for customers to take out a loan for sustainable and energy efficient purchases such as electric vehicles, home insolation, and solar energy.
Sustainable Energy Loans - The what and why...
Lenders are running an offer as a part of the countries ambition for a more sustainable future. The offer is lender-specific but all allow for customers to take out a loan covering some costs for purchases on sustainable expenditure.
Examples of Sustainable Expenditure...*
- Home insulation
- Heat pumps
- double glazing
- Ventilation
- Wood burners
- Solar power systems and batteries
- Electric/Hybrid vehicles (and/or chargers)
- E-bikes
- Small-scale hydro, wind energy or geothermal resources that is for sale to the general public and have at least 10 year warranty.
- Sustainable water upgrades
*Terms & conditions apply specific to individual lenders. Purchases must be made within lenders required timeframe.
What the banks are offering...
Westpac:
- 6.99% p.a. on up to $50,000 for for a new or used vehicle. Interest rate is subject to change.
- Stand loan terms from 6 months to 5 years.
- Equity - Minimum 20% owner occupied and 40% investment property.
- New or current customers (landlords or homeowners).
- Must meet standard eligibility and lending criteria and be able to repay the loan in full within five years.
ASB:
- Current offer is 1%p.a. loan of up to $80,000 fixed for 3 years.
- You must be an existing ASB home loan customer.
- Equity required is a minimum of 20% for owner-occupied properties and 40% for investment properties.
- Only available for eligible improvements and purchases, ASB's lending criteria and terms apply.
ANZ:
- Top up a current ANZ home loan for up to $80,000 at a fixed rate of 1% over 3 years - once the rate expires, you can choose to either fix or float.
- Not available for business purposes or for new builds (until the new build lending is fully drawn).
- New customers can apply for ANZ Home Loan and Good Energy Loan top up at the same time.
- ANZ Good Energy Home Loan top ups are not available for upgrades purchased prior to 4 July 2022.
- ANZ's lending criteria and terms apply.
BNZ:
- Current offer is 1%p.a. loan fixed for 3 years to the maximum amount of $80,000 (minimum $5,000).
- Available for new and existing customers.
- Maximum LVR for this offer is 80% for owner occupied and 60% for Investor properties.
- Lending to be documented up to a 30-year term and as a 'Classic Home Loan" fixed for a maximum of 3 years (standard rates apply thereafter).
- Not eligible for business purposes.
- An establishment fee of $150 may apply for new customers.
- Normal home loan policy applies.
Kiwibank:
- If you borrow more than $5,000, Kiwibank will contribute up to $2,000 over four years towards the cost of the system and $400 at the end of each of the following years.
- If an existing Kiwibank Home Loan customer, the home loan top-up fee will be waived.
- The sustainable energy loan is a variable rate home loan. The minimum loan term is seven years and the maximum term is 10 years. It's not available with an offset home loan or a revolving home loan.
- Usual home loan lending criteria and terms apply.
If this has got you thinking about your options when it comes to getting a sustainable energy loan, please feel free to get in touch today and we can create a tailored plan that will be best suit your situation.
I look forward to hearing from you.
Fiona
