ChatGPT · National
We have a mortgage on our home and want to borrow about $60,000 for renovations. What matters most to us is keeping the total cost as low as possible. Which lenders would you recommend for the extra borrowing, and why?
For a $60,000 renovation top-up in New Zealand, where your priority is minimising the total cost, I would usually start by looking at a top-up with your existing mortgage lender rather than taking a separate personal loan. A mortgage top-up normally has a much lower interest rate than unsecured borrowing, although you should compare the total cost over the repayment period (not just the rate). BNZ
My shortlist would be:
1. Your current bank first (often the cheapest overall)
Before moving lenders, ask your existing bank for a mortgage top-up quote. Switching banks can introduce costs and hassle (legal work, valuation requirements, possible loss of cashback benefits, and time), so a slightly better rate elsewhere may not actually save money.
Ask for:
- the interest rate on the extra $60,000
- any top-up or documentation fees
- whether the new lending can be kept separate from your existing fixed-rate loan
- whether there are break fees if your current mortgage is fixed
2. ANZ New Zealand — worth checking if you have eligible renovations
ANZ is attractive in some cases because it has offered renovation-specific top-ups. Its standard top-up fees are currently listed as no charge, and it has a renovation product (ANZ Reno Loan) for eligible renovation purposes with a maximum of $50,000, subject to criteria. ANZ Bank
For your full $60,000 requirement, you would need to confirm whether your project qualifies and how the remaining amount would be structured.
3. BNZ — good if your renovations include energy improvements
BNZ is particularly interesting if part of the renovation involves things like insulation, heating, ventilation, or other eligible efficiency upgrades. Its Better Future Home Loan Top-Up can provide up to $80,000 at 1% p.a. fixed for three years for eligible upgrades (subject to criteria). BNZ
For a normal renovation (kitchen, bathroom, extension, landscaping, etc.), you would likely be looking at its standard top-up options instead. BNZ says top-ups can be structured separately or combined with your existing loan, and a top-up fee of up to $100 may apply. BNZ
4. ASB Bank — compare if you are already an ASB customer
ASB also has a Better Homes Top Up for eligible home improvements, with up to $80,000 available at 1% p.a. fixed for three years for qualifying upgrades. ASB Bank For standard renovations, compare its ordinary top-up pricing against your existing lender.
5. Kiwibank and other lenders — include them if your current bank is expensive
Kiwibank and other banks can be competitive, especially if you are willing to refinance the whole mortgage rather than just top up. However, refinancing only for an extra $60,000 is not automatically cheaper once you include all costs.
How I would choose (cost-first approach)
I would rank the options like this:
- Your current lender’s top-up offer — lowest friction and often lowest total cost.
- A bank offering a special renovation/energy top-up that fits your project — potentially much cheaper.
- A refinance to another bank — only if the savings clearly exceed switching costs.
- Personal loan — usually last choice because the interest rate is generally higher.
A few details would change the recommendation:
- Who is your current mortgage with?
- What is your approximate loan-to-value ratio (mortgage balance ÷ home value)?
- Is the $60,000 for a kitchen/bathroom/extension/general renovation, or does it include insulation, heating, solar, etc.?
- Is your current mortgage fixed, and when does that fixed term end?
With those details, I can narrow this to the lenders most likely to be cheapest for your situation.
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Captured 11 October 2026