Best lenders for borrowing an extra $60,000 for renovations in Wellington
If you already have a mortgage on your home and want to borrow around $60,000 for renovations, my first recommendation would be to investigate increasing your existing mortgage before taking out a separate personal loan.
For most homeowners, the key is to find the right balance between a competitive interest rate, manageable repayments, flexibility, and the total interest you'll pay over the life of the loan.
In New Zealand, I'd start by comparing your current mortgage provider with a few other major banks and, depending on your circumstances, a mortgage adviser who can compare lenders on your behalf.
The best option will depend on how much equity you have in your Wellington property, your household income, your current mortgage rate, and how quickly you intend to repay the additional $60,000.
1. My recommended lenders
I'd compare the following five banks. The first three are especially worth investigating because they offer specific renovation or home-improvement lending options.
1. Your existing bank — best place to start
My first choice would usually be your current mortgage provider.
If you have sufficient equity and can afford the increased repayments, your existing bank may let you top up your mortgage without refinancing the entire loan.
Why I'd start here:
- You may be able to borrow at a home-loan interest rate, which is generally lower than a personal-loan rate.
- You may be able to keep your existing mortgage and fixed-rate arrangements intact, with the additional borrowing set up as a separate loan.
- You could avoid some of the legal, valuation and refinancing costs associated with switching banks.
Ask your current bank to quote for an additional $60,000, including any establishment fees and whether your existing mortgage structure would need to change.
My verdict: Start here, but don't assume loyalty guarantees the best rate. Compare its offer with other banks before committing.
2. BNZ — particularly attractive for eligible energy-efficient improvements
BNZ is worth considering if your renovation includes insulation, heating, ventilation or other eligible energy-efficiency improvements.
Its Better Future home loan top-up advertises:
- Borrowing of up to $80,000.
- A special fixed interest rate of 1% per annum for three years on eligible upgrades.
- The ability to structure a top-up as a separate loan or combine it with your existing home loan.
- A top-up fee of up to $100 for existing customers, subject to the applicable terms.
The special rate requires at least 20% equity in the property, and other eligibility conditions apply. After the three-year special-rate period, the loan can be refixed or BNZ's floating rate will apply. bnz.co.nz, bnz.co.nz
Important: This is not a general-purpose 1% renovation loan. Ordinary kitchen renovations, bathroom makeovers and extensions won't automatically qualify.
My verdict: One of the strongest options if a substantial part of your project qualifies for the special rate. For general renovations, compare BNZ's standard top-up offer instead.
3. ANZ — worth investigating for general renovations
ANZ offers an ANZ Reno Loan top-up specifically for renovations.
Its advertised features include:
- A separate renovation borrowing option for existing ANZ mortgage customers.
- Eligible borrowing from $3,000 to $50,000.
- A special fixed rate for three years.
- A minimum equity requirement of 20% for owner-occupied properties.
Eligible projects include kitchen and bathroom renovations, roofing, flooring, landscaping and general home improvements. The published offer is limited to $50,000 per customer, and ANZ's website currently does not display the applicable interest rate in the information retrieved. anz.co.nz, anz.co.nz
For your $60,000 project, you could ask ANZ whether you can finance $50,000 through its Reno Loan and the remaining $10,000 through a standard mortgage top-up.
Don't assume the two facilities can automatically be combined; ask ANZ to confirm eligibility and provide the interest rate and fees for the entire amount.
My verdict: A good candidate for ordinary renovations, especially if you're already an ANZ customer. Compare the actual quoted rate against a standard home-loan top-up before deciding.
4. ASB — worth checking for its renovation and energy-upgrade options
ASB offers a Better Homes Top Up for eligible improvements and purchases.
Its published product information advertises:
- Borrowing of up to $80,000.
- A special interest rate fixed for 36 months.
- Availability to existing ASB home-loan customers, subject to eligibility requirements.
ASB's special home-improvement lending is worth investigating if your renovation includes qualifying energy-efficient upgrades. Check whether your particular project qualifies and what rate ASB would offer. asb.co.nz, eeca.govt.nz
For a conventional renovation, such as a new kitchen, bathroom or extension, ask ASB for a quote on a standard mortgage top-up as well.
My verdict: Worth comparing, particularly if you're already an ASB customer or your project includes eligible energy improvements.
5. Westpac — particularly interesting for eligible upgrades
Westpac offers standard mortgage top-ups and a special product called the Greater Choices Home Loan.
Its general home-loan top-up allows eligible borrowers to access additional funds for home improvements, subject to lending criteria. For an owner-occupied property, Westpac generally requires at least 20% equity for its standard top-up option. westpac.co.nz
There is also a potentially valuable special offer for eligible energy-efficient home improvements. The Energy Efficiency and Conservation Authority lists Westpac's Greater Choices Home Loan as offering:
- 0% interest for five years.
- Up to $50,000 in borrowing.
- Repayment in full over five years.
This is a specific product with eligibility requirements, not a general-purpose interest-free renovation loan. eeca.govt.nz
My verdict: Worth checking if your renovation qualifies for its special scheme. Otherwise, compare its standard top-up rate with those offered by the other banks.
2. How I'd compare the options for your $60,000
Here's the shortlist I'd use, depending on what you're renovating.
| Your situation |
Lenders I'd approach first |
Why |
| General renovations, such as a kitchen or bathroom |
Your current bank, ANZ, BNZ |
Compare standard top-up rates, fees and repayment flexibility. |
| Insulation, heating, ventilation or other eligible energy upgrades |
BNZ, ASB, ANZ, Westpac |
Special home-improvement lending may be available. |
| You already have an ANZ mortgage |
ANZ first, then your current bank's competitors |
Check whether its renovation-specific product can cover most of the borrowing. |
| You already have a BNZ mortgage |
BNZ first, then compare other banks |
Ask whether any of your project qualifies for its special-rate lending. |
| You want to repay the $60,000 quickly |
Compare a separately structured mortgage top-up with a shorter-term loan |
A shorter repayment period can reduce total interest substantially. |
These are recommendations for which lenders to approach, not a claim that any one bank will approve your application or offer you the lowest rate.
3. The most important thing: how quickly will you repay the $60,000?
This is where I would pay particular attention.
Adding $60,000 to a mortgage can make the regular repayments relatively manageable, but if you spread the extra borrowing over the full remaining mortgage term, you could pay a substantial amount of interest.
For illustration, suppose you borrowed $60,000 at an interest rate of 6% per annum and made principal-and-interest repayments.
| Repayment period |
Approx. monthly repayment |
Approx. total interest |
| 5 years |
$1,160 |
$9,600 |
| 10 years |
$666 |
$19,900 |
| 15 years |
$506 |
$31,100 |
| 20 years |
$430 |
$43,200 |
| 25 years |
$387 |
$56,100 |
Illustrative calculations only. Assumes a constant 6% interest rate throughout, monthly repayments and no fees. Actual rates and repayments will vary.
Notice the difference: borrowing $60,000 over 25 years costs approximately $56,100 in interest, compared with approximately $9,600 over five years.
That's why I'd recommend asking the bank to set up the extra $60,000 as a separate loan portion with its own repayment term, rather than automatically adding it to the mortgage and paying it off over the full remaining term.
You could potentially match the repayment period to your budget while leaving your existing mortgage arrangements unchanged.
You can model different scenarios using the Sorted mortgage calculator. It lets you compare repayment amounts and total interest.
4. Should you use a mortgage broker?
For a $60,000 top-up, I think a mortgage adviser is worth considering, particularly if you're open to changing banks.
A good adviser can help you:
- Compare borrowing offers across multiple lenders.
- Work out whether refinancing your entire mortgage would be worthwhile.
- Assess whether your equity and income are likely to meet lenders' criteria.
- Structure the additional borrowing separately from your existing mortgage.
- Compare any cash contributions from a new lender against refinancing costs and potential early repayment charges.
If you're happy with your current bank and have plenty of equity, start by requesting a top-up quote directly. If the offer isn't competitive, approach a mortgage adviser before switching.
One caution: refinancing solely to obtain a lower interest rate on the additional $60,000 might not be worthwhile if it triggers substantial costs on your existing mortgage.
5. What I'd do in your position
My suggested approach would be:
- Ask your existing bank for a quote to borrow an additional $60,000, preferably as a separate loan portion.
- Get competing quotes from ANZ and BNZ, particularly if you aren't already banking with either of them.
- If your renovations include eligible energy-efficient upgrades, investigate the special offers from BNZ, ASB, ANZ and Westpac.
- Compare the interest rate, fees, repayment term and total interest—not just the initial repayment amount.
- Choose a repayment schedule that lets you pay off the renovation borrowing faster than your main mortgage, if your budget allows.
The final decision will depend on your circumstances, and all borrowing is subject to lender approval.
6. Let me narrow this down to the best two or three lenders for you
I can make a more useful recommendation if I know a little about your current mortgage.
Could you tell me these three things?
- 1. Who is your current mortgage with? For example, ANZ, ASB, BNZ, Westpac, Kiwibank or another lender.
- 2. Approximately how much is your home worth, and how much is left on your mortgage? Estimates are fine.
- 3. What sort of renovations are you planning? For example, a kitchen or bathroom, an extension, general renovations, or insulation, heating and energy upgrades.
With those details, I can narrow down which lenders I'd approach first and explain which options are most likely to suit your situation.
