Installing Heating and Insulation: What Financial Support is Available?

Kiwi homes are (unfortunately) known for being mouldy and damp. And one of the biggest contributors is inadequate insulation and heating. Small electric heaters are popular, due to their inexpensive costs. But they aren’t appropriate for warming large spaces and aren’t energy efficient. While thorough insulation is a big expense many can’t afford.

The high cost of efficient and effective heating and insulation is why so many of us pile on the layers during winter, instead of sitting pretty under a heat pump.

But there are a handful of initiatives to help Kiwis get cosy, by helping fund insulation and heating expenses. So if you’re looking to review your heating and insulation set-up, Canstar Blue reviews what financial support is available.

Pay for heating and insulation with your mortgage

Most banks will allow the costs of insulation and other energy efficiency products to be added to their mortgages. The costs can be incorporated into your existing mortgage over the same term, or as a shorter-term loan at the same interest rate. In some cases, you may even be able to get the loan at a heavily discounted rate, or even interest free!

Insulation, heat pumps, and ventilation can generally be added, but ask your bank what they cover. 

While most banks will be able to work out some sort of home loan top-up (should you be eligible), a few options that are available include:

ANZ Good Energy Home Loan

Top up your existing ANZ Home Loan at a fixed 1% rate for three years, up to $80,000. This can be used for a wide variety of sustainable initiatives such as:

• Heat pumps
• Insulation
• Double Glazing
• Solar Panels and batteries
• Purchasing an electric vehicle
• Electric vehicle home charging station
• Rainwater tanks

ANZ even offers the option to top the loan up. So if you borrow $80,000 for solar panels, and pay back $30,000, you can apply to take out another $30,000 at the same 1% rate. This can be used for any of the above initiatives. You can even take out multiple Good Energy Home Loans at one time, so long as the total doesn’t exceed $80,000.

Do note that after the three-year period, the special 1% interest rate comes to an end. Any remaining balance can then be fixed at one of ANZ’s special fixed interest rates (if you are eligible) or standard fixed interest rates. Or you can let your loan move onto the floating rate.

→Related article: ANZ’s Good Energy Home Loan: Helping Kiwis Go Green

Westpac Warm Up

Get up to $10,000 interest-free for five years to invest in for any mix of insulation, eligible heat pumps, double glazing, ventilation, wood burners and solar power systems. Importantly, it comes with no establishment fees and is entirely flexible. So you can pay it off early at no cost.

Compare home loans here with Canstar

The Warmer Kiwi Homes program

The Warmer Kiwi Homes program covers up to 80% of the cost of ceiling and underfloor insulation, and up to 80% of the cost of an approved heater (including a heat pump).

Not everyone is eligible, so you need to check if it’s an option for you. Some of the requirements include:

• You own and live in a home built before 2008
• Have a Community Services Card or live in an area identified as low-income
• Your home doesn’t have ceiling and underfloor insulation.

You can check the full eligibility criteria here.

Help from your local council

Some councils offer the option to pay for insulation and heating through a loan. This loan is added to your rates, and paid off as you pay your rates. Not all councils offer this option, and not all households are eligible. So, if you’re interested, you need to contact your local council.

Other tips for a warm home

Stop draughts

If a home is prone to draughts, it can be more difficult and expensive to heat. Blocking draughts is usually cheap and easy. Check doors and windows, chimneys and fireplaces, ceilings and floors, electrical and plumbing passages, extractor fans and recessed downlights.

Consider how much heat you actually need

It’s worthwhile considering how much heating is needed for your household. And, in determining the level required, how to maintain a balance between potential overheating and under-heating. As a general rule, only heat the room that you are in. Try to keep the temperature between 18C and 21C.

Make smart electricity decisions

Making smart moves across the range of appliances used in a household can help to drive down electricity costs during winter months.

Compare electricity providers

Reducing your electricity usage isn’t the only thing to consider. It pays to weigh up how much you’re paying for the electricity being used. Which is where Canstar can help!

Comparing electricity providers

If you’re unsure you’re getting the best deal, Canstar Blue can help. We rate NZ power companies for customer satisfaction and value for money, see the table below for some of the results, or you can click on the button below for the full results of our survey.

Canstar Blue’s latest review of NZ power companies compares them on customer satisfaction. The table below is an abridged version of our full results, available here.

Compare electricity providers with Canstar Blue!

About the author of this page

This report was written by Canstar Content Producer, Andrew Broadley. Andrew is an experienced writer with a wide range of industry experience. Starting out, he cut his teeth working as a writer for print and online magazines, and he has worked in both journalism and editorial roles. His content has covered lifestyle and culture, marketing and, more recently, finance for Canstar.