# HL-Q086: Choosing a loan We have a mortgage and want to borrow about $60,000 for renovations. Which lenders would you suggest we compare with our current bank? Borrower: Owners financing a $60,000 renovation [Study](https://nzbrands.ai/research/banking/home-lending/) · Collected 11 October 2026 ## chatgpt Answer ID: a67821a5-63f0-4439-abf9-f68c01e49f21 For a NZ$60,000 renovation loan in New Zealand, I’d compare your current bank against ANZ, ASB, BNZ, Kiwibank, Westpac and TSB. I’d start by looking at a mortgage top-up or a separate loan secured against your home, rather than an unsecured personal loan, provided you have enough equity and can comfortably afford the extra repayments. The biggest opportunity is to find a lender offering a competitive renovation-specific rate. However, switching banks isn't automatically worthwhile: legal costs, valuation fees, early repayment charges on your existing fixed mortgage and any cashback clawback could outweigh the savings. ## Which lenders I'd compare ## 1. ANZ Worth checking first ANZ has advertised a Reno Loan at 2.5% p.a. fixed for three years, for up to $50,000 of eligible renovations. You could potentially use this for $50,000 and finance the remaining $10,000 at its standard home-loan rate, subject to approval and the offer still being available. Minimum 20% equity applies to owner-occupied homes. [News Release](https://www.anz.com.au/content/dam/anzcomau/news/New-Zealand/2026/March/ANZ%20NZ%20News%20Release%20-%202.5%20per%20cent%20reno%20loan%20gives%20homeowners%20chance%20to%20get%20cracking.pdf)[2.5% Reno Loan gives homeowners chance to get cracking](https://www.exclusives.anz.com.au/newsroom/new-zealand/2026/03/25-per-cent-reno-loan-gives-homeowners-chance-to-get-cracking/) Details: [ANZ Reno Loan](https://www.anz.co.nz/personal/home-loans-mortgages/loan-types/reno/) ## 2. Kiwibank A good option to request a straightforward renovation top-up quote. Ask whether the additional $60,000 can be set up as a separate loan split, with its own repayment term, rather than being spread over the full remaining mortgage term. [Home loan top-up | Home loans](https://www.kiwibank.co.nz/personal-banking/home-loans/getting-a-home-loan/home-loan-top-ups/) Details: [Kiwibank home loan top-ups](https://www.kiwibank.co.nz/personal-banking/home-loans/getting-a-home-loan/home-loan-top-ups/) ## 3. BNZ Offers ordinary mortgage top-ups for renovations, with fixed or floating options. Its advertised 1% special is for eligible energy-efficiency improvements and transport, not general renovations. Ask for its standard top-up rate and all associated fees. [Home loan top-ups](https://www.bnz.co.nz/personal-banking/home-loans/manage-your-loan/top-ups)[Better Future home loan top-ups](https://www.bnz.co.nz/personal-banking/home-loans/manage-your-loan/top-ups/better-future-home-loan-top-ups) Details: [BNZ home loan top-ups](https://www.bnz.co.nz/personal-banking/home-loans/manage-your-loan/top-ups) ## 4. ASB Offers standard home-loan top-ups, which can be added to an existing loan or set up separately. Its Better Homes Top Up is a different product for eligible energy-efficiency upgrades, so check whether any part of your project qualifies. [Home loan top up - Top up your mortgage](https://www.asb.co.nz/home-loans-mortgages/home-loan-top-up.html)[ASB Better Homes Top Up](https://www.asb.co.nz/home-loans-mortgages/better-homes-top-up.html) Details: [ASB home loan top-ups](https://www.asb.co.nz/home-loans-mortgages/home-loan-top-up.html) ## 5. Westpac Worth including in your comparison for a standard renovation top-up. Westpac also has a 0% home-energy lending option for eligible upgrades, but it is capped at $50,000 and has specific eligibility conditions. [Bank loans for home energy upgrades](https://www.eeca.govt.nz/for-homes/improve-your-home/understand-home-energy-loans/) Details: [Westpac home loans](https://www.westpac.co.nz/home-loans-mortgages/) ## 6. TSB Another useful comparison, particularly if you want the renovation borrowing structured independently of your existing mortgage. TSB offers fixed and variable top-ups and notes that major renovations with staged payments may suit a building loan instead. [Top-Up Your Home Loan - Access Extra Funds](https://www.tsb.co.nz/home-loans-mortgages/home-loan-options/top-up) Details: [TSB home loan top-ups](https://www.tsb.co.nz/home-loans-mortgages/home-loan-options/top-up) ## How I'd approach the comparison I would get quotes from your existing bank, ANZ and two other lenders first, then widen the search if the savings justify it. Ask each lender for the same three things: - Interest rate: their best available rate for a $60,000 renovation top-up, including any special offers. - Repayment structure: the cost of repaying the extra borrowing over 5, 10 or 15 years, ideally in a separate loan split. - Total switching cost: legal and valuation fees, any break costs on your current fixed loan, and whether cashback is available. Be particularly careful about extending the renovation debt over the remaining 20–30 years of a mortgage. The repayments may look small, but the total interest can be substantial. ## To narrow this down for your situation There are two details that would help me identify the strongest options. --- ## gemini Answer ID: e916c489-3801-4b95-aae6-c719d35a77d1 When looking to borrow an additional **$60,000** for home renovations in New Zealand, your options generally split into two categories: **topping up your existing mortgage** with another main bank (or your current lender), or looking at **specialist personal loan lenders** or credit unions. Because $60,000 is a significant amount, borrowing against your home equity via a mortgage top-up or restructuring is almost always cheaper interest-wise than taking out an unsecured personal loan. --- ### 1. The Main Retail Banks (Mortgage Top-Up / Restructuring) If you have at least **20% equity** in your property post-renovation (meaning your total loan-to-value ratio is 80% or under), comparing the major NZ banks is your best starting point. * **Why compare?** Main bank standard home loan or floating/fixed rates are substantially lower than personal loans. * **The Major Lenders to Look At:** * **ANZ:** Offers specific renovation top-up products (like the ANZ Reno Loan for top-ups up to $50,000) as well as "Good Energy" top-up options if any of your renovations involve solar, double glazing, or heat pumps. * **ASB & BNZ:** Both feature competitive home loan top-up processes and specialized low-rate sustainable/energy top-ups if your reno has green elements. * **Westpac & Kiwibank:** Highly comparable standard mortgage top-up facilities where you can split the $60,000 onto a fixed term matching your current mortgage structure or float it. *Note: If a portion of your renovations includes eco-upgrades (e.g., insulation, heat pumps, solar, double glazing), check out the **Green Home Loan Top-Up** schemes offered by ANZ, ASB, BNZ, and Westpac, as some banks offer heavily discounted promotional rates (ranging from 0% to 1% fixed for a multi-year period) for those specific components.* ### 2. Credit Unions & Specialist Lenders (Alternative Options) If your current bank is difficult to deal with, your equity is tight, or you want to avoid formal mortgage restructuring fees, you can compare specialized lenders and credit unions: * **Unity (Credit Union):** Offers secured home improvement/renovation loans up to $60,000 starting around 9.90% p.a. Because they are a credit union, their fee structures and member-focused criteria can sometimes differ from major trading banks. * **Peer-to-Peer / Specialist Lenders (e.g., Harmoney, Nectar):** Offer personal loans, though rates for unsecured amounts can climb significantly higher (often starting from 7.95% to well over 12%–20% depending on credit profile). These are usually only ideal if you want to avoid touching your mortgage structure entirely and can pay it off very quickly. --- ### Action Plan & Next Steps 1. **Calculate Your Equity:** Check your current council valuation or get an up-to-date estimate. Banks will look at your "as-improved" value (what the house will be worth *after* the $60,000 renovation) to ensure your total borrowings stay under the 80% LVR threshold. 2. **Weigh Up Switching vs. Staying:** Refinancing your entire mortgage to a completely new bank just for a $60,000 top-up rarely makes financial sense because of discharge fees, legal fees, and the loss of any cash-back clawbacks from your current bank. However, *getting quotes* from other major banks gives you powerful leverage to negotiate a better rate or service waiver with your current bank. 3. **Engage a Mortgage Broker:** Consider using a registered New Zealand mortgage adviser. Their advisory services for residential top-ups/refinancing are typically **free to you** (as they are paid commission by the lender), and they can simultaneously shop your application across multiple banks to see which lender is most flexible with your equity level and income. Are any parts of your planned renovation focused on energy efficiency or heating/solar upgrades? --- ## ai-overviews Answer ID: 7994b02d-342b-405d-89c2-bee724ca3805 To borrow **$60,000 for home renovations** , you have several strong alternatives to your current bank in New Zealand. Because you already have a primary mortgage, your options depend heavily on whether you plan to **refinance your main mortgage** to a new provider to top up the extra $60,000, or if you prefer to keep your current mortgage intact and look for a **flexible second-tier solution**. * * * 1\. The Major Banks (Best for Full Refinancing) If your current fixed-term mortgage is coming to an end, or if you are willing to break your current structure, switching your entire mortgage to another major bank can unlock competitive top-up rates or cashbacks. * **ANZ:** They frequently feature renovation-focused products like the **ANZ Reno Loan** , which provides up to $50,000 at a special fixed interest rate for three years. For a $60,000 project, you could couple this with a small standard top-up. * **ASB, Westpac, and BNZ:** All major lenders offer structured **construction or top-up loans**. Additionally, if your renovations include eco-friendly or energy-efficient upgrades (e.g., solar panels, insulation, double-glazing, heat pumps), most major NZ banks offer **1% or interest-free loans** up to $50,000–$80,000 under sustainability initiatives. 2\. Challenger Banks & Regional Providers (Best for Competitive Rates & Unique Structures) These providers often offer lower headline interest rates or alternative structures that can save money over time. * **Kiwibank:** As a locally owned alternative, Kiwibank matches major bank features and often runs competitive cashback incentives for refinancing clients. * **SBS Bank & TSB:** Customer-owned banks that frequently offer highly competitive fixed mortgage rates compared to the "Big Four." * **NZHL (New Zealand Home Loans):** They use a **managed home loan structure** utilizing continuous floating accounts. If you want to use your income and savings dynamically to reduce the interest paid on your renovation debt, their structure is specifically designed for rapid debt reduction. 3\. Non-Bank & Specialist Lenders (Best for Fast Approval or Complex Incomes) If your current bank has already turned you down due to strict debt-to-income (DTI) or serviceability caps, non-bank lenders offer far more flexible lending criteria. * **Resimac, Pepper Money, and Liberty Finance:** These are reputable non-bank lenders in NZ. They excel if you are self-employed, have irregular income, or do not fit the strict traditional bank box. _Note: Their interest rates are typically 1% to 3% higher than traditional banks._ * * * Key Comparison of Renovation Borrowing Routes Borrowing Method| Typical Interest Rate| Pros| Cons ---|---|---|--- **Eco/Sustainable Top-up**| 0% – 1%| Lowest cost option| Limited strictly to energy-efficient materials **Standard Bank Top-up/Refinance**| Standard Mortgage Rates| Long repayment term keeps monthly costs low| Breaking a current fixed mortgage can incur break fees **Non-Bank Lender Second Mortgage**| Higher Mortgage Rates (~7% - 9%)| Flexible criteria if primary bank says no| Higher rates and potential setup fees **Unsecured Personal Loan**| 10% – 18%+| Extremely fast approval; doesn't touch your house equity| High interest rates; short repayment term means high monthly payments * * * Crucial Blind Spots to Consider * **Equity & LVR Rules:** Banks will limit your total borrowing based on your Loan-to-Value Ratio (LVR). For a standard top-up, you will generally need to ensure your total debt (existing mortgage + $60,000) does not exceed **80% of your home's current value**. * **Fixed-Term Break Fees:** If your current mortgage is locked into a fixed rate, switching banks to get the renovation money could trigger **early repayment break fees** from your current lender. To help narrow down the best path forward, could you tell me: * Are you open to **moving your entire mortgage** to a new bank, or do you want to keep it where it is? * Is your current mortgage on a **fixed or floating rate**? * Do your renovations include **eco-friendly upgrades** (like solar or insulation)?