ASB Offers Low-Interest Loans for Solar, EVs, and Energy Efficiency
By Aniket Bhor on in Solar Power News In New Zealand
The race for green loans in New Zealand is now picking up pace. After ANZ and Westpac, ASB is also offering a low-interest loan on energy efficiency technologies. Under its ‘Better Homes Top-Up’, customers can borrow up to $80,000 at a nominal 1% p. a. interest. The loan term is 3 years, and includes important home improvements such as solar power, electric vehicles, and more.
Let’s take a look at the eligible upgrades under ASB’s Better Home Top-Up loan.
Eligible Improvements and Purchases
Solar Energy
ASB customers willing to save on their power bills while also reducing carbon emissions can do so by opting for solar power. The loan is available for solar panels, batteries, and inverters installed by a member of the Sustainable Electricity Association of New Zealand (SEANZ).
Homeowners looking to install a solar water heating system can also benefit from the loan.
Electric Vehicle, Hybrid EV, or EV charger
In the past financial year, the sales of electric vehicles jumped by a staggering 309%, according to Stats NZ. Clearly, more and more people are willing to use clean mobility which slashes their fuel costs.
The Better Homes Top-Up can be used to buy a pure electric car (BEV), a hybrid (PHEV), or an EV charger (portable or fixed).
Other Upgrades
While solar and EVs are the major eligible items, the Top-Up loan is available for the following upgrades as well.
- Home insulation
-Underfloor, ceiling, or wall insulation - professionally installed.
-Window glazing: double or triple-glazed windows, or secondary glazing upgrades. - Heating or cooling systems
-Heat pump system, installed in your home.
-Wood burner or wood pellet burner, which meets any specific local council regulations. - Moisture reduction
-Extractor Fans: A bathroom extractor fan or kitchen rangehood sending air outside (not inside or ceiling space).
-Ground moisture barriers, professionally installed.
-Ventilation systems - positive or balanced pressure systems - Water heating
Heat pump water heaters
Solar hot water systems
Wetbacks
If you are unsure about which home improvements suit you best, check out the Homefit online self-assessment for tips on improving the health of your home. Developed by the New Zealand Green Building Council, it's an easy-to-use tool that produces a final report to help you prioritise the options for making your home warmer, drier, and more efficient.
Applicant Eligibility Criteria
To be eligible for the Better Homes Top-Up, the applicant must be an existing ASB home loan customer. The applicant can be a sole private person, joint private persons, trust, or company.
Applicants with owner-occupied properties must provide 20% of the loan amount as equity, while those with investment properties must provide 40%. In all cases, ASB’s lending criteria and terms will apply.
For each of the eligible upgrades listed in the previous section, the bank will need to see a quote/invoice for the purchase that is no more than 60 days old from the date of application. For solar power, applicants must submit a quote from an SEANZ member, while for EVs, the quote should be from a registered seller. My Solar Quotes only obtains quotes from companies that are SEANZ registered. Get 3 Free solar quotes here.
Applicants can apply for a loan that crosses the $80,000 mark, but anything above that number will come with the regular interest rates at the time of borrowing. The tenure of the loan can be a maximum of 30 years. However, you can repay the loan in part or full before your specified tenure, in which case an early repayment adjustment will be applicable.
You can also top-up the loan once your tenure has started - subject to a $99 fee. If you repay your existing Better Home Top-Up loan, you can apply again for the same.
Conclusion
Despite the substantial benefits of a solar power system or an electric car, their upfront costs can be significant. And interest rates on loans can often be off-putting for homeowners willing to make the shift. ASB removes this hurdle by offering the Better Homes Top-Up.
In the words of Adam Boyd, the executive general manager for personal banking at ASB - “Cost is often a barrier to making home improvements so we’re making energy efficient renovations more affordable with our low three-year fixed rate of just 1%.”