Welcome to our channel. ANZ has launched a new product called" Good Energy Home Loan" with a great 1 % interest rate to encourage people to be more energy efficient or use more renewable energy. Westpac also has a very similar product called "Warm up home loan", in this post, we'll explain what these are and share a quick comparison with you.

Both products have their advantages. For Westpac Warm Up Home Loan, it is an interest free loan with a five-year duration. But the maximum loan amount is only $10k. on the other hand, the ANZ Good Energy Home Loan has a much higher loan amount than Westpac, which is $80k with 3 years special rates term. Unfortunately, the interest rate is not free, but 1% is still a good choice in the current high interest rate environment.

The main purpose of these products is to help people have a warmer, dryer and healthier home. It also can be better for your wallet, saving your money over time. Both products cover heat pumps, insulations, double glazing, ventilation, and solar power at the same time.  ANZ Good Energy Home Loan covers nearly all products Westpac offers, but ANZ has a very attractive purpose which is hybrid and electric vehicles. As fuel prices rise sharply, more people are interested in buying electric or hybrid vehicles. ANZ good energy home loan is perfect for you if you plan to buy one. The capped limit of $80k should be able to cover the most basic electric vehicle models.

How to choose between these two products? It depends on what you want to do. If you want to upgrade home related, Westpac is better for you because their product is interest free, and the loan amount should be sufficient to cover your needs. However, if you want to purchase an electric vehicle, ANZ product is excellent for you because their loan limit is higher. Hopefully, our article helps you make an informed decision about which product is more suitable for you.

Please note that to qualify for these products, you still need to pass the servicing test.These products are not only applicable for the owner-occupied property but also for rental properties. For example, those products can help you install a heat pump to meet the healthy home criteria.Even if you have the cash to cover these costs, given the low interest, it’s probably still a good idea to apply and use your money to repay your existing loans with higher interest rates or alternative investments.

For those who are not an ANZ or Westpac customers, if your bank doesn’t offer these products and you want to find out if it is possible to enjoy the benefits, please feel free to get in touch with us, and we can help you to review if refinancing to these banks will be a good option? You may find some extra benefits from having these products, such as a cashback offer from the new bank, and a better loan structure. 

I hope you found it helpful. And if your family and friends are looking to do one of these upgrades, please share the content with them so they can get the same benefit. Got questions? We're more than happy to help. Call us at 09 930 8999 for a chat with one of our mortgage advisors. At Prosperity Finance, we don't have a one-size-fits-all solution for your home loan. We look at your case, understand your needs and situation then make a tailored solution for you.

Disclaimer: The content in this article are provided for general situation purpose only. To the extent that any such information, opinions, views and recommendations constitute advice, they do not take into account any person’s particular financial situation or goals and, accordingly, do not constitute personalised financial advice. We therefore recommend that you seek advice from your adviser before taking any action.