Constructing a home involves various expenses, but there are ways you can get support from your bank to incorporate sustainable upgrades in your build. One such approach is the green home loan scheme.
What is the Green Home Loan?
Green home loans are accessible to New Zealanders who want to implement energy-efficient or environmentally conscious enhancements to their residences.
Green home loans enable you to apply for financing for eligible home improvements like insulation, ventilation, and heating upgrades. This loan will get added to your existing mortgage.
Many larger banks have their own version of this loan: with some offering up to $40,000 interest free for five years, and other banks offering up to $80,000 at 1% p.a. Here is a list of some of the green loan providers.
The purpose of green home loans is to enhance affordability of sustainable upgrades for homeowners. Eco-friendly homes not only have a lower carbon footprint, but are healthier, warmer, drier, and cheaper to run; thus, dramatically improving the quality of life of the inhabitants.
Can I Use the Green Home Loan for New Builds?
Typically, green home loans are for additions to existing properties. However, you can still get access to it with a new build. Here’s how:
- Talk with your banker prior to building, to discuss the green features you would like to incorporate into your new build. They will determine if features of your build are eligible for a green loan or not.
- These features can be: Heat pumps, water tanks, solar panels or electric charges for your EV. These features can all be added AFTER the build has been complete.
- Once your new build is nearing completion, you can then have further discussions with your bank about the fixing off the mortgage to include the green loan to finish off the new sustainable features you discussed previously, that weren’t included in the build process and cost.
Ultimately, loan approval is at the discretion of the lender. Fraemohs takes no responsibility for you being eligible for the green loan.
Interested in starting your new build journey?
Contact us to learn more about our eco-friendly homes.