ANZ incentivises Kiwis to build healthy homes

ANZ’s Healthy Home Loan Package includes a 0.70% discount off the standard fixed home loan rate, 1.00% off the standard floating and flexible home loan rates, and fee waivers across a range of accounts(i).

The fixed rate discount would mean a one year rate of 3.75% at today’s prices. ANZ’s Healthy Home Loans Package will be available to homes which rate 6 or above using Homestar, which is a comprehensive, independent tool rating the health, warmth and efficiency of New Zealand houses on a scale of six to 10.

“Most existing New Zealand homes only achieve a two or three rating, and new homes – even though they’re built to the Building Code – will only achieve three or four,” said Antonia Watson, Managing Director Retail and Business Banking, ANZ New Zealand. 

“We’d like to play our part in raising those standards, and creating more homes that are warmer, drier and healthier. “The idea of building sustainably is not mainstream here yet. It’s viewed as an expensive luxury, rather than the basic standard it should be. 

“Our housing market will gradually catch up with international standards, but we don’t want to wait for that – we want to create better homes now.

“The New Zealand Green Building Council has calculated that it costs about 1.5% more to build a three-bedroom house meeting the 6 Homestar rating compared to a similar house built to code, but about $500 less a year to run (ii). 

“A Healthy Home Loan Package on the average home will save a customer another $1000 a year or so in interest costs. 

“It’s our way of helping deal with some of the short-term costs so Kiwis can enjoy the long-term benefits.”

Ms Watson launched the Healthy Home Loan package today at the Homestar 6-rated Alba apartments in Takapuna attended by Hon James Shaw, Minister for Climate Change.

Hon James Shaw said concessional interest rate programmes like this have the potential to make a huge impact on the quality of New Zealand’s housing stock.

“Upgrading our homes so that they’re warm, dry, and energy efficient will reduce health costs, improve homeowners’ finances, and help cut New Zealand’s greenhouse gas emissions,” Mr Shaw said. Research (iii) commissioned by ANZ showed 37% of those surveyed rated warmth and dryness as the important factor when building or renovating, ranking well ahead of sustainability at 17%.

78% said that cost is the biggest barrier to building sustainably, well ahead of the availability of builders (23%), the return on investment (23%) and a lack of knowledge about sustainable building (20%).

The package is the latest in ANZ’s range of initiatives to help Kiwis live in healthier homes.  In 2018, the bank pledged $100 million on interest-free home lending to help insulate Kiwi homes, and supports HomeFit, designed by the New Zealand Green Building Council to enable the public to find out how healthy their homes are.