Interest-free Warm Up loan expanded as sustainability takes centre stage
Westpac Warm Up Loan expanded to up to $40,000 interest free for 5 years
Westpac NZ has announced a raft of new of sustainability initiatives including expanding interest-free loans for making homes warmer, a pilot of a sustainable farming finance loan, a commitment to aligning with a net zero emissions future, and the release of a new Responsible Banking and Investment Position.
Westpac NZ chief executive Catherine McGrath says the bank is focused on supporting customers who want to take positive action.“Climate change is a growing threat to our environment, communities and business. Cutting emissions reduces risk, helps protect the world we live in for future generations and also creates opportunities to do things in new ways. “Over the past 10 years we’ve reduced emissions from our own operations at Westpac NZ by 60%. With today’s announcement we’re lifting our game across the bank to support our customers to reduce their carbon emissions.Westpac’s Warm Up loan is being expanded and customers can now borrow up to $40,000 interest-free to make their home warmer, drier, more sustainable and energy efficient. As well as the increased limit, electric vehicle chargers and solar batteries have been added to the items that can now be funded through the loan.“We’ve already lent more than $30 million interest-free through Westpac Warm Up and aim to get to $100 million. As well as supporting customers to live more sustainably, these loans also help with cost of living pressures through the zero interest charged and in many cases reduced energy costs,” McGrath said.Westpac NZ is also piloting new Sustainable Agribusiness Loans with a small group of farming customers.“The loan is the first of its kind to require a customer to meet all parts of the Sustainable Agriculture Finance Initiative guidance,” McGrath said.“ This guidance includes practices to reduce emissions, improve long-term resilience and deliver more sustainable outcomes in terms of water, waste, pollution and ecosystems.”Once farmers commit to meet the guidance, they have two years to achieve that goal and will be supported with discounted loan pricing.The loans are expected to be rolled out more widely next year.Ms McGrath says Westpac Group, including Westpac NZ, has signed up to the UN-convened Net-Zero Banking Alliance.“This confirms Westpac’s commitment to a net zero lending portfolio by 2050, while also setting lending emissions targets for 2030.“Moving forward, we’ll be working closely with our big business customers – in certain sectors – that want to access lending, to establish how they’re managing climate-related risk and what they’re doing to decarbonise.”Ms McGrath says the bank is speeding up its response to climate change.“We know New Zealanders want more than promises and platitudes from businesses when it comes to climate change. We’re taking action in our own business and these initiatives provide tangible pathways for customers who want to take action as well.”The release of Westpac NZ’s Responsible Banking and Investment Position wraps together the way environmental, social and governance factors guide activity across the bank in a clear and simple summary for customers.“It also spells out plainly where we’re not willing to do business. For example we don’t lend to coal mining companies, or provide banking services to payday lenders and mobile truck shops.”
Westpac NZ Customer Experience Hub General Manager, Karen Silk, says the timing of the launch will deliver benefits to households and small businesses.
“We’ve all got used to spending more time at home recently and most people expect that to continue through winter. More than three out of five people told us they expect higher power bills and many of them were concerned.
“That’s why we’re urging customers to think about using this interest-free loan to make their home warmer, drier and more energy efficient.
“On top of improving comfort in your home, the installation will also provide important business to tradespeople navigating their way out of COVID-19. We think this is a great way people can support the small businesses and sole traders who deliver these services.”
38% of people surveyed were worried that cold or damp conditions in their home could cause or worsen health problems for household members, while 89% of said it was ‘very important’ or ‘extremely important’ to live in a house that is warm and dry.
Ms Silk said the loan could be paid off interest-free over five years.
“We think this is an important way we can walk the talk and help New Zealanders make their home healthier for themselves and more sustainable for the environment.
“COVID-19 is the great challenge of our time, but we know climate change will also cause enormous economic, social and health problems in the future if left unchecked.
“Our customers know that too. More than half of those surveyed said it was important to have an energy-efficient house that reduces the impact on the environment and climate change.”
The loan is available to eligible Westpac NZ home loan customers, including landlords.
Westpac Warm Up loan:
- existing or new home loan customers can borrow up to $10,000 interest free for 5 years
- Loan can be used to fund the installation of:
- Insulation
- Heat pump(s)
- Double glazing
- Ventilation
- A solar power system
- Installation must be completed by an installer who installs insulation, heat pumps, ventilation, double glazing and/or solar power systems as part of their usual business.
- More information about applying and eligibility can be found at https://www.westpac.co.nz/home-loans/warm-up/
Nexus Planning & Research was commissioned by Westpac NZ to conduct the research. It surveyed 1005 New Zealanders in May 2020. The margin of error is +/- 3.1%.
Do you expect to be spending more time in your house this winter than in previous years?
- Yes 70%
- No 19%
- Don’t know 11%
Have you noticed an increase in your household's power use since the beginning of the level 4 lockdown?
- Yes 66%
- No 26%
- Don’t know 8%
Do you expect to have higher power bills this winter than in previous years?
- Yes 64%
- No 25%
- Don’t know 11%
[For people who answered ‘yes’ above] Does having higher power bills this winter compared to previous years make you concerned?
- Very concerned 24%
- Somewhat concerned 52%
- Neither concerned or unconcerned 17%
- Somewhat unconcerned 5%
- Very unconcerned 2%
Does your house have issues with coldness and dampness, and if so, do you worry this could cause or worsen health problems for someone in your household?
- Very worried 11%
- Quite worried 27%
- Not worried 21%
- My house is not cold or damp 40%
- Don’t know 1%
How important is it that your home is warm and dry? How important is an energy efficient house that reduces your impact on the environment and climate change?
- Extremely important 51% 20%
- Very important 38% 33%
- Somewhat important 9% 36%
- Not very important 1% 8%
- Not at all important 1% 3%