That Home Loan Hub
Welcome to That Home Loan Hub, your ultimate guide to mastering the world of home loans and property. I'm Zebunisso Alimova, here to simplify the complexities of real estate and provide you with expert insights and the latest trends.
Whether you're a first-time homebuyer, an experienced investor, or simply curious about the property market, this podcast is for you. Join me each week as we unlock the secrets to property success and help you make informed decisions. Let's dive into the world of property together!
That Home Loan Hub
A 1% Interest Rate Could Transform Your Home and Transport
Ready to make your home more energy efficient or purchase an electric vehicle without the financial strain? Our latest conversation dives into the world of green loans – a game-changing financial option that's flying under the radar for many Kiwis.
We explore how these specialized loans offer dramatically reduced interest rates – as low as 0-1% compared to standard 5-5% loans – making environmentally friendly choices much more accessible. From solar panels and batteries to heat pumps, insulation, water tanks, and double-glazed windows, green loans cover a surprising range of home improvements. For those in the market for cleaner transportation, these loans extend to electric vehicles and even electric bicycles.
The application process couldn't be simpler. You'll need a quote from an authorized provider, but most banks charge no application fees, and the approval process mirrors a standard home loan top-up. Once approved, you typically have three months to use the funds (with possible extensions), provided you have sufficient equity in your home to secure the loan. With winter approaching and power bills set to rise, timing couldn't be better to consider these energy-efficient upgrades.
Perhaps most compelling is the urgency factor – these exceptional rates could disappear from the market at any moment. If you've been contemplating solar energy, an EV, or upgrading your home's efficiency, now might be the perfect time to speak with your financial advisor about green loan options. Could this be the financial opportunity that helps both your wallet and the planet?
Hello and welcome back to Kunj Cares. Hello, kunj Kia ora Kunj, what do you care about today?
Speaker 2:I thought we'd touch on green loans today. What is a green loan? So a green loan is actually a low interest loan that all the banks are doing to help you get your property to the healthy home standard or you're purchasing a electric vehicle.
Speaker 1:Oh, okay, so I can go and get myself a new electric vehicle like Tesla or some other EV.
Speaker 2:Yeah, Tesla.
Speaker 1:Let's not talk about Tesla, all right. So we could go and buy an EV, or I could install solar panels or solar battery, or I could get insulation Water tank.
Speaker 2:Yes, so anything to do with the environment that is going to help us be green?
Speaker 1:Aha, that's why it says green Correct Gotcha Okay, and what's on offer? How is it different to a normal loan.
Speaker 2:So you'll see that the normal loans are at the 5%, 5.5% sort of thing Interest rate, interest rate. But the green loans, most banks, are doing it at 1% at the moment.
Speaker 1:That's amazing. Did you know that some banks actually do it even at 0%?
Speaker 2:Yes, I did know that there's one that does it for zero or zero more.
Speaker 1:Well, there might be two.
Speaker 2:Okay, One or two does it at 0% guys.
Speaker 1:So how cool is that? So if you are in the market at the moment shopping for a new car or shopping how to improve your power bills, especially with winter coming, we're going to be running more electricity, yep. So if you do want to install the solar panels and solar batteries because, to be honest, solar panels work really well if you've got the solar batteries to actually hold that energy in, you could actually go and apply for that loan. So what sort of documents someone will need to get that.
Speaker 2:So you need a quote from a authorized provider, um. So if you're installing a heat pump or upgrading your heat pump, you'll just you'll just need that from um the guys who are doing it. If you're buying a electric vehicle or electric bicycle or something like that, you'll just need a quote um from the um shop or the Trade Me listing or from the car dealer.
Speaker 1:Okay, and the application is a normal application process, like we would normally do for a home loan, yes, so just like a normal home loan top up. Are there fees involved in the application? Do the banks charge?
Speaker 2:you a fee? No, no application fee.
Speaker 1:Awesome Yep, in most of the cases, and yeah, you just get an approval. You've got three months to use it or lose it. And if, within three months, you haven't really found the right provider or you're still searching for quotes, we can actually update your approval for another three months.
Speaker 1:So you could do that, but the important thing is you do have to have an equity in your home that you're going to be using it. Now you can also actually use it for the windows. Yes, double glazing, double glazing or upgrade them, I think, retrofit them, or whatever they call them these days. So most of the major banks have this sort of option available to you. So go and speak with your advisor or us or your bank and, yeah, to get a few more ideas. Yeah, but how cool is that? Amazing. It's such a low rate to benefit from and we don't know how long that's going to last on the market.
Speaker 2:No, it could be taken tomorrow, taken off the market tomorrow right, we don't know, but yes, 1% or 0% for a green loan is a really good offer at the moment.
Speaker 1:Exactly Awesome. Well, thank you, conch, that's been absolutely enlightening episode, and have a good day you too. Thank you, bye, bye.