The home loan market may be very subdued, but that is not stopping banks from coming up with 'new' ways to lend.
The latest is from ANZ which has launched a "Good Energy Home Loan top up."
For those with an existing ANZ mortgage, it will allow them to borrow up to $80,000 at a three-year fixed rate of 1% per annum.
It can be used to upgrade homes with things like solar panels, heating and insulation, double glazing, ventilation systems and rain water tanks. It can also be used for electric and hybrid vehicles, and EV chargers.
It's aimed at households who are concerned about rising energy and fuel costs, as well as environmental sustainability, and were looking to make changes where they can. It could remove some of the cost barrier for people wanting to make such changes.
For those who take up the full $80,000 on offer, it will cost $800 per year ($15.40/week) for three years in interest. Energy cost savings of at least this level should be possible for most good energy-saving projects.
The latest EY Mobility Consumer Index shows that the desire to live more sustainably also extends to people’s choice of car, with half of New Zealanders looking to buy a hybrid or EV in the future.
The 1% offer is a teaser, but fixed for three years, it is a valuable benefit.
A normal three year $80,000 loan would cost $118/week when amortised over a 30 year term (principal and interest). This "Good Energy Home Loan top up" will cost only $59/week, including the interest component.
ANZ says the offer isn't really a "top-up" of an existing loan, it will be set up as a separate loan so it would roll on as a separate loan unless the borrower decides to restructure. After the special three year fixed rate, ANZ’s Home Loan floating interest rate will apply.
The current ANZ floating rate is 5.94%. If that rate was around in three years, the repayment would rise to $110/week.
There's more detail on the loan from ANZ here.
38 Comments
Why doesn't the government use a scheme like this in the next recession. Interest free loans for home improvements including solar panels, glazing, insulation and upgrading water cylinders/fireplaces etc. Seems like a decent way to manage the unemployment from the failure of the housing bubble.
This is seriously awesome. Very tempted to go shopping. It's a shame it's only fixed for 3 years, I'd go all out if it was a 1% fix for something like 10 years, but dreams are free.
Maybe the Government could....chortle......ahh........lol......come up with something like this instead of blowing housing bubbles and driving new lending into unimproved housing....
It's easy to offer people reasonable rates in the middle of winter while they're not generating [relatively] very much... lets see what summer brings.
Though I have asked Megan why, if the government were serious about solar uptake, they don't do something about the rip-off prices the retailers pay ... so far.. silence. Maybe something to do with the government being shareholders in the power companies...
Ah sure. I was referring to whether the plan will still be offered then - when all the solar generating customers they gain now are costing them money. Or if they see an influx then.
I seem to recall another small player offering a pretty good deal that very quickly couldn't handle the influx of customers a few years ago.
wholesale spot rates pretty much sit on 20c/kwh ($200/MWh) these days, so they can still they are still making a saving buying solar instead of spot.
https://www.transpower.co.nz/sites/default/files/bulk-upload/documents/…
2 heat pumps, a dryer, a front loader, a dishwasher and the timed boost on the hot water. Forgot the timed oil heater, so it's more like 12.2kwh for that hour, plus the kettle, the TV/stereo. Considering putting a timer on the 2 fridge freezers and the freezer so they're off from 5pm-9pm (peak charges) so add those 3 to the mix it would be more like 15kWh free every night Autumn-Spring. In winter we're only running a timed boost on the hot water for 2 hours a day. The solar PV and the fire take care of the rest.
It would be interesting to see if other banks follow suit, and whether ANZ are stress testing this particular top up at less than their current market rates.
I would only consider it if I was with another bank (I am) and needing to rollover a fixed rate in a month or so (I'm not), but in any case I'm not breaking my 4.89% unless 5 year rates drop to < 3%.
ANZ have more money sloshing around in their coffers than Scrooge McDuck could even shake a stick at. This is just a method by which they take a charge over their victim's house, and in 3 years time,just as it starts raining, they whip the umbrella away, raise they interest rate to what they say is the market rate,plus their risk surcharge, and the ANZ is laughing, shovelling money back to Aussie, as per usual. Why any rational Kiwi banks with, or works for these crooks is beyond me.
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