Interest-free lending on EVs announced

New Zealanders can now access interest-free lending to purchase an electric vehicle, as part of Westpac’s expanded sustainable lending programme.

The Greater Choices product is available to anyone with a Westpac home loan who meets lending and affordability criteria.  In a first for New Zealand banks, it includes 0% interest for up to five years on EVs.

Westpac NZ General Manager of Product, Sustainability and Marketing Sarah Hearn says the bank is focused on helping customers reduce their carbon footprint.

“We’ve taken our popular Westpac Warm Up loan and renamed it Greater Choices to reflect the wide range of sustainable options it now includes,” Hearn says.

“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."

“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. Customers will have the flexibility to purchase either new or second hand through a dealership, depending on what suits them.

“We’ve also expanded the lending limit from $40,000 to $50,000 to accommodate more purchasing options. There are no establishment fees and we structure the loan to be fully paid off after the five-year interest-free period.

Hearn said the product was launched internally last month and initial feedback had been positive. There had been "strong appetite both from new and existing customers”, she said.

Rainwater tanks and hot water heat pumps are also newly eligible for the loan.

Ms Hearn says 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.”

The update to the Greater Choices home loan comes after the announcement of Westpac NZ’s new Sustainable Farm Loan and Sustainable Business Loan in June.

The new Sustainable Farm Loan will accelerate on-farm sustainability and resilience for farmers and growers, while the Sustainable Business Loan offers discounted lending on green or social assets or activities such as energy efficient buildings, native planting projects and affordable housing.

* Denotes new product feature.