Renovation and green energy loans

As renovations can range from a simple facelift to a full makeover inside and out with structural changes, so too can the loans that can make it happen.

By Brian Coogan - Infinance

Depending on the amount of equity, LVR, size of the job and intended repayment duration, options can range from unsecured and secured personal loans through to mortgage top-ups and construction loans for the more substantial renovation works and where structural changes are being made.

Whether you’re building new or renovating, most banks provide green energy packages with interest rates ranging from the likes of 0% for 5 years up to $50k or 1% for 3 years up to $80k that can rollover onto a normal fixed rate loan and some that will be mortgage rate interest bearing with cash contributions. These can be stand alone or part of a larger package with specific quotes for green energy components. Provided to own clients, banks will typically want your entire mortgage with them to qualify.

Green energy for personal applications can include supply and fit out of home insulation, double glazing, heat pumps, ventilation, solar panels through to small scale hydro, wind energy, geothermal resources and can also extend to electric and hybrid motor vehicles and home charging stations. Some banks are also providing green energy for business loans up to $3m at preferred rates for environmental projects.

So, if you’re all about saving the planet and your wallet or just like to be toasty and warm while conserving energy, maybe a green energy loan is for you. Or it might be that you just want to update or extend and make what you’re already got great. There is a myriad of options to choose from that your mortgage advisor will be able to walk you through as criteria and offerings can vary greatly amongst lenders.  

 For more detail on the above go to www.infinance.co.nz/insights.

 WRITTEN BY BRIAN COOGAN, LICENSED FINANCIAL ADVISER AND DIRECTOR AT INFINANCE- TAUPŌ.

COMMENTARY IS GENERAL IN NATURE AND NOT TO BE CONSIDERED FINANCIAL ADVICE.

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It always seems impossible until its done – Nelson Mandela