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Selectra New Zealand
Updated 24 May 2026 · Independent

Compare every green home loan in New Zealand for 2026

Six lenders. Six different ways of pricing «green». We map ANZ, ASB, BNZ, Westpac, Kiwibank and Heartland against the real saving each one delivers — so you stop comparing teaser rates and start comparing dollars.

Reviewed 24 May 2026 · By Cornelia Zavoianu, NZ energy editor at Selectra

See all 6 lenders side-by-side Which loan fits me?
No bank affiliations. Rates verified 24 May 2026. Real savings, not teaser rates.

6

NZ lenders compared

0%

Lowest rate (Westpac, 5 yrs)

$80k

Highest borrowing cap

3 yrs

Typical teaser-rate window

What is a green loan?

A green loan is bank credit that can only be used for environmentally beneficial purposes — insulation, heat pumps, solar PV, batteries, EVs, double glazing or efficient hot water. In New Zealand the four big banks (ANZ, ASB, BNZ, Westpac) deliver it as a discounted top-up on an existing home loan; Kiwibank pays a cash bonus instead; Heartland funds EVs at standard car-finance rates. All sit under the Green Loan Principles set by the Loan Market Association, which require the money to be ring-fenced for genuine environmental use.

Almost every comparison of NZ green loans ranks them by headline interest rate. That is the wrong question. A 1% rate is a 3-year teaser that quietly reverts to your bank's standard fixed rate — typically around 7–8% in 2026. A 0% rate held for five years is a fundamentally different product. So is a flat $2,000 cash bonus. So is a 9% EV loan with a 6-month repayment holiday.

The right question is: how many actual dollars will this lender shave off the cost of my upgrade? This page answers that bank by bank, then shows you which structural traps to avoid.

Interactive tool to match you with the best New Zealand green loan based on project type, amount, repayment speed and current mortgage.

NZ Green Loan Matcher

Find your loan in 5 quick steps

We score all six New Zealand lenders on the dollar saving you'll actually see — not the marketing rate.

01 What are you funding?
02 How much do you need to borrow?
Loan amount NZ$50,000
NZ$5kNZ$100kNZ$200k
03 How quickly can you repay?
04 Do you already have a home loan?
05 Could you qualify for a Warmer Kiwi Homes grant?
Answer 4 more to unlock your match
Scoring 6 lenders against your profile…

Side-by-side

All 6 New Zealand green loans, compared in dollars

Real interest cost on a $50,000 upgrade, not the marketing rate. The order is set by who saves you the most money.

Comparison of New Zealand green energy loans by rate, cap, term and real saving
Bank & product Rate Cap Term Real saving on $50k
ANZ Good Energy Home Loan 1.00% p.a. Fixed teaser NZ$80,000 Up to 30 years (teaser 3 yrs) ~NZ$3,600 over 3 yrs on a $50k loan (vs 7.39% standard)
ASB Better Homes Top-Up 1.00% p.a. Fixed teaser NZ$80,000 Up to 30 years (teaser 3 yrs) ~NZ$3,600 over 3 yrs on a $50k loan
BNZ Better Future Top-Up 1.00% p.a. Fixed teaser NZ$80,000 (home) · NZ$500,000 (business) Up to 30 years (teaser 3 yrs) ~NZ$3,600 over 3 yrs on a $50k loan
Westpac Greater Choices Home Loan 0.00% p.a. Interest-free NZ$50,000 5 years ~NZ$10,200 over 5 yrs on a $50k loan (vs 7.39%) — the largest real saving on the market
Kiwibank Sustainable Energy Loan Standard home-loan rate No discount — cash bonus instead Limited only by your mortgage serviceability 7–10 years (sustainable portion) NZ$2,000 flat — useful, but smaller than the teaser-rate banks over 3 yrs
Heartland Bank EV Vehicle Loan 8.45% – 12.45% p.a. Fixed for term Set by vehicle price + serviceability 1–7 years (typically 5) No real discount — but it lets you buy an EV without re-mortgaging

Real saving compares interest paid at the green rate against a 7.39% p.a. standard 3-year fixed rate (Reserve Bank of New Zealand average, April 2026). Always confirm current rates with the lender before applying.

6 user profiles

Which green loan is actually right for you?

Pick the profile that matches your situation. The recommendation already accounts for hidden costs and rate reversion.

Full home retrofit

You want insulation + heat pump + solar in one go

→ ANZ, ASB or BNZ (1% for 3 yrs, up to $80k)

You need the biggest cap. The 1% teaser saves about $3,600 over three years on a $50k bundle. Pick whichever bank already holds your mortgage — switching banks for the green loan rarely pays.

Pure cost minimisation

You can repay the loan inside 5 years

→ Westpac Greater Choices ($50k at 0%)

Mathematically the best deal in the country. Zero interest for the full 5-year term and no reversion clause. The $50k cap is the only constraint — fine for one major project, tight for a full retrofit.

Solar installation

You want a solar system that will not be a lemon

→ Kiwibank Sustainable Energy Loan

No rate discount, but the SEANZ-certified-installer rule plus a mandatory 10-year warranty filters out the cheap-and-cheerful operators that account for most NZ solar complaints. The $2,000 bonus is a bonus, not the point. Size the system against your own usage profile first — our solar power in NZ guide covers the payback maths.

Electric vehicle

You want an EV without re-mortgaging

→ Heartland Bank EV Loan

The only product that keeps the EV separate from your home equity. 8.45–12.45% is steep compared to a mortgage top-up, but you avoid stretching a car purchase over 30 years (which always costs more in the end).

Top up existing mortgage

You just want a fast top-up with no bank-switching

→ Whichever bank holds your current mortgage

All four major banks now offer near-identical 1% top-ups. The hassle of moving the mortgage to chase a 0.x% advantage almost always destroys the saving. Apply to your incumbent.

SME / business

You run a business looking to electrify

→ BNZ or ANZ Business Green Loan

Both lend at discounted margins on lines of $1–3 million for industrial heat, EV fleets and solar arrays. The catch: sustainability reporting requirements come attached. Useful if you want a third-party-validated ESG credential anyway.

Bank by bank

The full detail on every NZ green loan

Each card covers the rate, cap, term, security, eligible projects and the one thing the marketing page does not flag.

ANZ logo
1% teaser

ANZ Good Energy Home Loan

1.00% p.a. · up to NZ$80,000

Rate type
Fixed teaser
Rate window
3 years, then reverts to standard fixed rate
Min / max
NZ$3,000 – NZ$80,000
Security
Secured (home-loan top-up)

Eligible projects

Insulation Heat pump Solar PV Battery Double glazing EV / hybrid EV charger Water tank E-bike

Best for

Larger insulation + heat pump + solar bundles bundled into an existing ANZ mortgage

Watch out for

You must be an ANZ home-loan customer. EVs require 20% equity minimum.

ASB logo
1% teaser

ASB Better Homes Top-Up

1.00% p.a. · up to NZ$80,000

Rate type
Fixed teaser
Rate window
3 years, then reverts to standard fixed rate
Min / max
NZ$5,000 – NZ$80,000
Security
Secured (home-loan top-up)

Eligible projects

Insulation Heat pump Solar PV Battery Double glazing EV / hybrid EV charger

Best for

ASB mortgage holders who want a single bundled drawdown for multiple upgrades

Watch out for

Quotes must be under 60 days old. Work cannot start before approval.

BNZ logo
1% teaser

BNZ Better Future Top-Up

1.00% p.a. · up to NZ$80,000 (home) · NZ$500,000 (business)

Rate type
Fixed teaser
Rate window
3 years, then reverts to standard fixed rate
Min / max
NZ$5,000 – NZ$80,000 (home) · NZ$500,000 (business)
Security
Secured (home-loan top-up)

Eligible projects

Insulation Heat pump Ventilation Solar PV Battery Hot water EV / hybrid EV charger

Best for

BNZ mortgage holders, including small businesses needing larger green capex

Watch out for

Approved project list is the strictest. Cosmetic green upgrades are excluded.

Westpac logo
0% for 5 yrs

Westpac Greater Choices Home Loan

0.00% p.a. · up to NZ$50,000

Rate type
Interest-free
Rate window
Full 5 years — no reversion
Min / max
NZ$5,000 – NZ$50,000
Security
Secured (home-loan top-up)

Eligible projects

Insulation Ventilation Heat pump Solar PV Hot water EV / hybrid EV charger

Best for

Anyone with a Westpac Choices home loan who can repay inside 5 years. The mathematically best deal in NZ.

Watch out for

Lower cap ($50k) than the 1% products, so it suits one big upgrade rather than a full retrofit.

Kiwibank logo
NZ$2,000 cash

Kiwibank Sustainable Energy Loan

Standard home-loan rate · up to Limited only by your mortgage serviceability

Rate type
No discount — cash bonus instead
Rate window
Up to NZ$2,000 cash bonus over 4 years
Min / max
NZ$5,000 – Limited only by your mortgage serviceability
Security
Secured (home-loan top-up)

Eligible projects

Solar PV Battery Wind / hydro / geothermal micro-gen Insulation Low-carbon transport

Best for

Solar PV buyers who care about install quality. The SEANZ installer + 10-year warranty rule is a real quality filter.

Watch out for

No rate discount. You pay your normal home-loan rate; the $2,000 only partially offsets interest.

Heartland Bank logo
Unsecured EV

Heartland Bank EV Vehicle Loan

8.45% – 12.45% p.a. · up to Set by vehicle price + serviceability

Rate type
Fixed for term
Rate window
Standard car-finance rate, not a green discount
Min / max
No fixed minimum – Set by vehicle price + serviceability
Security
Secured against the vehicle

Eligible projects

Electric vehicle Plug-in hybrid

Best for

Buyers without a mortgage, or who want to keep the EV off the home loan

Watch out for

6-month "repayment holiday" on new EVs is a cashflow tool — interest still accrues during it.

Market analysis

Four things the marketing pages do not tell you

Green loans are not a charity programme. They sit inside a specific regulatory and competitive structure — and that structure decides what the deal really looks like.

01

The 1% rate is a 3-year teaser, not the price of the loan

ANZ, ASB and BNZ all advertise 1% p.a. But the small print is identical: the discount applies only for the first three years. After that, the balance rolls onto the bank’s standard fixed rate — around 7–8% in 2026. On a $50,000 top-up that means the real saving is roughly $3,600 over three years, not the 6 percentage points the headline suggests. Repay aggressively inside that window or the saving evaporates.

02

Westpac quietly offers the best deal in the country

Westpac’s 0% Greater Choices loan looks like the same product. It is not. The rate is held for the full five years, with no reversion clause. Compared to a 7.39% standard rate, a $50,000 loan saves about $10,200 in real interest over the term — nearly three times what the «1% banks» deliver. The trade-off is a lower cap ($50k vs $80k), but for one big project that is rarely the binding constraint.

03

Banks compete on green loans because of regulation, not goodwill

Under the Aotearoa New Zealand Climate Standards, every large NZ bank must disclose financed emissions and climate transition plans from 2023 onward. Green loans help reduce reported financed emissions and meet voluntary Net-Zero Banking Alliance targets. That is why all four majors launched comparable products within months of each other — and why the 1% rate is unlikely to disappear quickly, even as wholesale rates move. Read it as a regulatory cost they pass partially to you.

04

A home-loan top-up has a hidden cost: it lengthens the debt

Bundling a $25,000 heat pump into a 25-year mortgage feels cheap. It is not. If the upgrade is repaid over the full mortgage term at standard rates after the 3-year teaser, the total interest can exceed the original price of the equipment. Always set the green portion to amortise inside the discounted window, even if it means a higher monthly payment. Banks rarely volunteer this — the longer term suits their margin.

Insider move

Stack the grant first, then the loan

Most households apply for the green loan first and pay full price. The cheaper sequence runs in reverse.

  1. 1

    Step 1

    Apply for Warmer Kiwi Homes first

    If you hold a Community Services Card or live in a low-income area, EECA will cover up to 90% of insulation and heat pump costs. This is free money you do not need to repay. Check eligibility.

  2. 2

    Step 2

    Get formal quotes for the remaining work

    The bank will require itemised quotes from accredited installers. Banks will not lend against work already started — line up your quotes before applying for finance.

  3. 3

    Step 3

    Apply for the green loan top-up for the gap

    Use the green loan only for the portion the grant did not cover, plus any non-grant upgrades (solar, EV, double glazing). This keeps the borrowed amount small enough to repay inside the teaser window.

  4. 4

    Step 4

    Amortise inside the discount period

    Ask the bank to structure repayments so the green loan clears before the 3-year teaser ends (or 5 years for Westpac). On $20,000 that is about $570/month at 1% — well within reach if the upgrade also cuts your power bill by $50–$100/month.

Also worth knowing: if you receive NZ Super or a main benefit, the Winter Energy Payment is paid automatically from 1 May to 1 October on top of any grant or loan. It is not means-tested against the green-loan balance.

How it works

From quote to drawdown in 5 steps

Every bank follows essentially the same approval flow. Knowing it in advance shaves weeks off the timeline.

1

Get itemised quotes

From accredited installers, valid within 60 days. List each item separately.

2

Pre-approval check

Confirm you are an existing home-loan customer (Big-4) or have equity/serviceability for a top-up.

3

Submit application

Upload quotes, proof of ownership, project scope. Most banks decide within 5–10 working days.

4

Bank pays installer

Funds usually go direct to the installer, not to your account. Drawdown happens stage by stage on bigger jobs.

5

Repay inside teaser

Set repayments to clear the green portion before the discount ends. Otherwise standard rate kicks in.

Green vs standard

Green home loan or a standard renovation loan — which costs less?

If your project qualifies under the Green Loan Principles, the green top-up is almost always cheaper than the bank's general renovation loan. Here's the side-by-side.

A standard renovation home-loan top-up is the bank's general-purpose lending against your equity — used for kitchens, bathrooms, decks, swimming pools, anything that adds value to the property. There is no rate discount, no project list, no cashback. You pay your bank's standard fixed or floating home-loan rate, currently around 7–8% p.a. in 2026.

A green home loan is the same financial instrument — a top-up secured against your existing mortgage — but ring-fenced for energy-efficiency upgrades and priced at 0–1% during the teaser window. For an identical $50,000 borrowed over three years, the green loan saves roughly $3,600 in interest at ANZ, ASB or BNZ, and roughly $10,200 over five years at Westpac. The catch: the standard renovation loan covers anything, the green loan covers only the items on the bank's eligible-projects list.

Green home loan versus standard renovation loan — comparison of rate, cap, eligible work and total cost
Feature Green home loan Standard renovation top-up
Interest rate 0% (Westpac, 5 yrs) or 1% (ANZ / ASB / BNZ, 3 yrs) Bank's standard fixed / floating rate (~7–8% p.a.)
Maximum amount $50,000–$80,000 (home) · up to $500,000 (BNZ business) Limited by equity and serviceability
Eligible work Insulation, heat pump, solar PV, battery, EV, EV charger, double glazing — bank's published list only Any home improvement (kitchen, bathroom, deck, pool, extension, etc.)
Quotes required Itemised, from accredited installer, < 60 days old Generally itemised but no accreditation rule
Fees Establishment fee usually waived Standard top-up admin fees apply
Real cost of $50k over 3 yrs ~$760 in interest at 1% (ANZ Good Energy) ~$5,800 in interest at 7.39%

Standard rates indicative of average NZ home-loan rates in May 2026. Always confirm the current quoted rate with your bank before signing.

The practical rule: if at least 70–80% of your project is on the green-eligible list, ask for the green loan first. If you are funding a kitchen with one heat-pump unit thrown in, the renovation top-up will be simpler and the marginal saving on a single heat pump is not worth the extra paperwork. Some banks (notably ANZ and Westpac) will split a single project across both products — green-loan rate on the qualifying items, standard rate on the rest — if your broker pushes for it. Compare your numbers against the average NZ power bill to size the upgrade against the savings it actually produces.

Solar installer quality

SEANZ-certified solar installers: why it matters for your green loan

The Sustainable Energy Association of New Zealand (SEANZ) is the country's solar industry body. One bank turns its certification into a hard loan requirement — and that one rule does more for build quality than the rate discount.

SEANZ — the Sustainable Energy Association of New Zealand — is the trade body that certifies solar PV installers against a published code of practice covering design, installation, electrical work, commissioning and post-installation warranty. Membership is voluntary, but the certification carries real weight because the Disputes Tribunal cases that surface in NZ solar consistently involve non-SEANZ installers cutting corners on panel orientation, inverter sizing or cable run.

Kiwibank is the only NZ bank that hard-codes the SEANZ rule into its loan conditions. Its Sustainable Energy Loan will not release funds for solar PV unless the installer is SEANZ-certified and provides a workmanship warranty of at least 10 years. ANZ, ASB, BNZ and Westpac let you choose any electrician, which sounds more flexible but in practice puts the quality-control burden back on you — and most homeowners are not qualified to spec a solar system.

Use SEANZ even if you're not borrowing from Kiwibank

You can apply Kiwibank's filter to any green loan. When you collect quotes for the ANZ, ASB, BNZ or Westpac products:

  • Restrict the shortlist to installers listed on the SEANZ member directory.
  • Require a workmanship warranty of at least 10 years in the quote.
  • Check that panel and inverter warranties are back-to-back with the installer — not just manufacturer guarantees you'd have to enforce from overseas.
  • Insist on a written performance estimate (kWh/year) based on your roof orientation and shading, not a generic city-average.

The SEANZ filter is even more useful when you stack a green loan against the buy-back rate. A poorly oriented array can lose 15–25% of its annual generation, which destroys the payback maths regardless of whether you're on the best solar buy-back plan in New Zealand. For a deeper walk-through of sizing, payback and self-consumption strategy, read our guide to solar power in NZ.

Green loan FAQ

The Selectra expert answers your questions

For the big-four banks, yes. ANZ, ASB, BNZ and Westpac structure their green loans as top-ups on an existing home loan, so renters and outright cash buyers without a mortgage cannot access them. Unsecured green personal loans exist at some lenders, but they cost 8–12% p.a., not 1%. Heartland Bank’s EV loan is the main exception — secured against the vehicle, no property required.

The balance rolls onto the bank’s standard fixed home-loan rate — around 7–8% p.a. in 2026. There is no automatic extension. If you cannot repay the green portion inside the 3-year window, the loan effectively becomes a normal mortgage top-up. This is why we recommend amortising it on a 3-year schedule, not 30.

Yes — and it is the cheapest way to retrofit. The EECA grant covers up to 90% of approved insulation and heat pumping for eligible households. The green loan then funds the residual plus any non-grant upgrades (solar, EV, double glazing). Banks are happy to lend on the gap as long as your quotes show the grant share is being applied to the same project.

Each bank publishes a list, but they all align with the Loan Market Association Green Loan Principles: the use of funds must be ring-fenced for environmentally beneficial purposes (insulation, heat pumps, solar PV, batteries, EVs, double glazing, water-saving devices). Cosmetic upgrades, swimming-pool heating and most renovations do not qualify, even if they improve energy use.

It depends. Heartland Bank finances used EVs but typically without the promotional rate offered on new ones. ANZ, ASB and BNZ allow EVs (new or used) under their home-loan top-ups, provided the vehicle meets emissions criteria and you can demonstrate at least 20% equity in the property. Westpac and Kiwibank focus on new EVs.

Most green loans waive the establishment fee. Westpac, ANZ and BNZ explicitly do. You may still pay a small admin fee for adjusting the mortgage structure, plus the usual break costs if you refinance away from the bank during the discount window. Always ask for the «total cost of credit» figure before signing.

A green loan top-up shows on your credit file the same as any other home-loan increase: a hard enquiry at application, then ongoing repayment history. Provided you repay on time it has a neutral or slightly positive effect. The unsecured green personal loans some lenders offer carry the usual personal-loan footprint.

Keep reading

Pair the green loan with the right plan and grant

Five companion guides on selectra.nz that cover the upstream and downstream of a green-loan decision.

Warmer Kiwi Homes grant

Up to 90% of insulation and heat-pump costs covered by EECA. Stack this before the loan.

Winter Energy Payment

NZ Super and main-benefit recipients get $20.46–$31.82 a week from 1 May to 1 October.

Solar power in New Zealand

How rooftop solar pays back, panel sizing rules and which install configuration matches your roof.

Best solar buy-back rate

The retailer ranking that decides how much your exported kWh are worth at every NZ provider.

Low-user vs standard-user plans

A retrofit that drops your usage under the low-user threshold can be worth changing tariffs for.

Compare NZ power companies

The 22-retailer comparison you need before you size the loan.

Before you borrow

Cut your power bill first — you may not need to borrow as much

A $1,000-a-year saving on electricity is worth roughly $13,000 of upgrade you do not need to finance. Compare all 22 NZ retailers in minutes before you size the loan.

Compare NZ power companies Browse all NZ energy schemes