And now offers interest-free lending on EVs
In a first for New Zealand banks, Westpac is now offering interest-free lending for up to five years on electric vehicles.
Westpac has expanded its sustainable lending programme, Westpac Warm Up loan, and renamed it Greater Choices to reflect the wide range of sustainable options the product now covers.
The Greater Choices product can be accessed by Westpac home loan borrowers who meet lending and affordability criteria. The loan can be used not just for electric and hybrid vehicles but also for EV chargers, as well as heat pumps, wood burners, double glazing, solar power, insulation and ventilation.
Sarah Hearn (pictured above), Westpac NZ general manager of product, sustainability, and marketing, said the bank is focussed on helping customers cut their carbon emissions.
“We’ve already lent $80m to customers on a range of items to make their home more energy efficient, such as heat pumps, insulation, ventilation, solar panels, and double glazing,” Hearn said. “Now customers can also use the loan to purchase EVs of any kind, which could help cut their carbon footprint and save them money in the long term.”
Hearn said the product provides customers with the flexibility to buy either new or second hand through a dealership.
“We’ve also expanded the lending limit from $40,000 to $50,000 to accommodate more purchasing options,” Hearn said.
The loan has no establishment fees and is structured to be fully paid off after the five-year interest-free period.
“We launched this product internally last month and initial feedback has been positive, with strong appetite both from new and existing customers,” Hearn said.
The new loan now also has the option for rainwater tanks and hot water heat pumps.
Hearn said Westpac’s Greater Choices lending target is doubling to $200 million.
“The $80m we’ve already lent is enough to purchase about 32,000 heat pumps or insulate more than 26,000 homes – the equivalent of an entire small city living in greater comfort and saving on power bills,” she said.
The Greater Choices home loan has been updated following the announcement of Westpac NZ’s new sustainable farm loan and Sustainable business loan in June.
Westpac’s new sustainable farm loan, New Zealand’s first-ever whole-of-farm sustainable loan, will speed up on-farm sustainability and resilience for farmers and growers.
The bank’s sustainable business loan, on the other hand, offers discounted lending on green or social assets or activities such as energy efficient buildings, native planting projects, and affordable housing, the bank said in a media release.
Click here for more information about Westpac’s Greater Choices product.
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