The bank launched the new product to help improve energy efficiency and sustainability standards in New Zealand residential properties.

ANZ’s Healthy Home Loan Package cuts 70 basis points off standard fixed-rate loans and up to 1% from standard floating and flexible home loan rates. It also offers customers fee waivers.

This discount could knock down the bank’s one-year rate to just 3.75%, based on its current rates. The product is available for new builds or upgrades to residential properties with a Homestar rating of six or above, which is considered to be a high standard of sustainability and energy efficiency.

ANZ managing director of retail and business banking Antonia Watson says the bank wants to help improve building standards in New Zealand. “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.

“We’d like to play our part in raising those standards, and creating more homes that are warmer, drier and healthier.”

She adds that the idea of building sustainably is not yet mainstream in New Zealand. “It’s viewed as an expensive luxury, rather than the basic standard it should be.”

The offer is the latest product aimed at construction properties, which are not bound by LVR restrictions. Last year, ANZ offered $100 million in interest-free loans
for insulation. Climate Change Minister James Shaw, who helped launch the product, says such schemes could potentially have a huge impact on the country’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.”