Home Improvement Loan Guide for New Zealand

Embarking on a home improvement journey is an exciting opportunity to enhance key areas of your home, boost your property value, and improve energy efficiency (ultimately reducing your ongoing energy costs). However, managing the financial aspect of renovations can be daunting. This is where home improvement loans come in – providing a practical solution to fund your home improvement upgrades while maintaining your personal financial stability.

In this guide, we’ll explore different home improvement loan options in New Zealand, planning strategies, and how Nectar Money can support your renovation goals.

Why Consider a Home Improvement Loan?

Home improvements offer several advantages, whether you’re upgrading for your family’s comfort, enhancing your property value, or tackling urgent repairs. In New Zealand’s competitive housing market, well-planned upgrades can offer long-term financial and lifestyle benefits.

Increase Property Value

Renovations can significantly boost your home’s market value, making it a worthwhile investment for homeowners and property investors alike. Strategic upgrades such as modern kitchens, bathroom renovations, and adding outdoor living spaces are particularly valuable in the New Zealand property market.

• Best ROI Renovations in NZ: Research shows that kitchen and bathroom upgrades, fresh paint, and landscaping provide some of the highest returns.
• For Investors: If you’re looking to flip a property, smart renovations like energy-efficient heating, double glazing, or an extra bedroom can increase appeal to buyers.
• Talk to a property valuer or a real estate agent to understand what buyers in your area are looking for.

Improve Living Conditions

A home should be a comfortable and functional space that suits your lifestyle. Whether it’s an open-plan layout for better flow, modernised interiors, or extra storage, renovations can enhance everyday living.

• Growing Families: Expanding your home with an extra bedroom or bathroom can make life easier.
• Aging in Place: If you plan to stay in your home long-term, modifications like ramps, wider doorways, and safer bathrooms can make aging at home more manageable.
• Engage a certified builder to gauge approximate costs for making the changes you’d like to make.

Enhance Energy Efficiency

New Zealand homes, particularly older ones, often lack proper insulation and efficient heating, leading to higher energy costs. Upgrading your home’s energy efficiency can save money in the long run and create a healthier living environment.

• Common Upgrades in NZ: Installing insulation, double glazing, heat pumps, and solar panels can significantly reduce power bills.
• Government Support: Some homeowners may be eligible for government grants or low-interest loans through programs like the Warmer Kiwi Homes initiative.

Urgent Home Repairs

Unexpected repairs—like fixing a leaking roof, replacing faulty wiring, or addressing plumbing issues—can’t always wait. A house repair loan can provide the funds needed to handle these urgent fixes without draining your savings.

• NZ Weather Considerations: With New Zealand’s variable climate, storm damage and moisture-related issues like mould or rot can be common concerns.
• Avoid Costly Damage: Addressing minor issues early can prevent them from turning into major, expensive problems.

Understanding Home Improvement Loan Options in New Zealand

There are various ways to finance your home improvements, each with distinct benefits.

Secured vs. Unsecured Personal Loans

• Secured Loans: Require collateral, such as your home or car, which can result in lower interest rates but carry a risk of asset repossession.
• Unsecured Loans: Do not require collateral and offer greater flexibility, making them ideal for renovations.

Flexible Home Renovation Loans from Nectar Money

Nectar Money offers unsecured personal loans ranging from $2,000 to $40,000, ideal for both minor home improvement updates and large-scale renovations.

Fast Loans for Renovations

Need funds quickly for urgent repairs? Fast loans provide same-day funding, ensuring your project stays on track.

Affordable Home Improvement Loans in NZ

Affordable financing depends on factors like interest rates, fees, and repayment terms. Nectar Money offers competitive rates and flexible loan durations, allowing repayments over 6 months to 5 years.

Planning Your Home Improvement Project and Loan

A well-planned renovation is a successful renovation. Follow these steps to ensure your project runs smoothly:

1. Set a clear budget: Determine how much you can realistically afford to spend on your renovation and stick to it. A personal loan calculator can be a helpful tool in this process.
2. Compare quotes: Obtain estimates from different contractors and suppliers to ensure you’re getting the best value for your money.
3. Prioritise projects: Focus on essential improvements first to stay within budget and achieve the most impactful results.
4. DIY or hire professionals? Consider your skills and the complexity of the project. Handling smaller tasks yourself can save money, but some jobs are best left to the experts.
5. Use a loan repayment calculator: Our handy loan repayment calculator can help you estimate your monthly repayments and overall loan costs, giving you a clear understanding of your financial commitment.
6. Manage your finances responsibly: Borrow only what you need and can comfortably repay. Consider your current financial situation and future goals before making any decisions.
7. Get a tailored loan quote: Nectar Money provides customised loan quotes to suit your individual needs and circumstances. Get started today!

Nectar Money and Your Home Improvement Journey

Nectar Money simplifies financing, helping Kiwis achieve their renovation goals with ease.

Why Choose Nectar Money? There are a number of reasons to choose Nectar Money over other lenders:

• Flexible Loan Amounts: Borrow from $2,000 to $40,000.
• Same-Day Funding: Get funds quickly for urgent projects.
• Personalised Interest Rates & Low Fees: Competitive rates tailored to your finances.
• No Broker Fees: Save by borrowing directly.
• Easy Online Account Management: Track repayments and manage your loan effortlessly.

Personal finance advice

Unsure of how to manage your money? You can access free personal finance services or pay for professional personal finance advice.

How much can you borrow with a Nectar Money Personal Loan?

With Nectar Money you can borrow unsecured up to $40,000, or as little as $2,000. Use our loan repayment calculator to find out how much you could get.

Getting started with Nectar Money

Do you need a great rate on a home improvement loan? We’d love to help with your personal loan requirements. Find out how much you could borrow and learn more about our personal loans. You can get started with Nectar Money and get a personalised loan quote online which will include your interest rate, maximum borrowing amount and repayment options.

Nectar Money – we make lending sweeter.*

*Nectar Money’s lending criteria and responsible lending checks apply.