Home Improvement Loans

1. What is a home improvement loan and how does it work?

A home improvement loan is an unsecured personal loan you can use for renovations and upgrades — from kitchens and bathrooms to insulation, roofing, flooring or landscaping. Apply 100% online, get an instant personalised quote in about 7 minutes, and if approved and signed during processing hours we aim to pay funds the same day.

2. What projects can I use a Nectar home improvement loan for?

Common uses include kitchens, bathrooms, heat pumps, insulation, double glazing, re-roofing, painting, decking and outdoor areas, accessibility upgrades, urgent repairs and more. Funds go to your bank account so you can pay materials and contractors directly.

3. How much can I borrow and for how long?

You can apply for $2,000–$40,000 over 6 months to 5 years, subject to lending criteria and affordability checks.

4. Do I need to secure the loan against my house?

No. Nectar home improvement loans are unsecured — there’s no security over your home and no PPSR registration.

5. What interest rates and fees apply?

Personalised fixed rates currently range from 11.95% p.a. to 29.95% p.a. Fees include a $240 establishment fee and a $1.75 administration fee per repayment. There are no early repayment fees. See the full breakdown on our Rates & Terms page.

6. Can I get money before choosing a contractor or finalising quotes?

Yes. You can obtain a personalised quote first (soft credit check), then final approval follows quick verification. You can finalise your builder or quotes before or after you accept your loan, as long as the loan still fits your affordability.

7. Do you offer progress payments or drawdowns as the work goes?

No. Because the loan is unsecured, we pay in one lump sum to your account. Many customers keep part of the loan in a separate account for staged payments to tradies.

8. Can I do DIY or do I need a licensed contractor?

DIY is fine where it’s legal and safe to do so. For regulated work (e.g., electrical, gasfitting, plumbing, structural), you’ll need qualified trades and any required council consents.

9. Do I need council consent to get a loan?

Consent isn’t required to apply for a loan, but you’re responsible for obtaining any required building or resource consents. If your project scope changes, keep your budget realistic (see top-up options below).

10. Can I add a contingency or increase the loan if costs change?

Yes — you can include a reasonable contingency in your amount. If your costs increase later, you can apply for a top-up (subject to responsible lending checks).

11. Can I use a home improvement loan for a rental property?

Yes. You can use funds for improvements to a property you own, including a rental, provided the loan meets affordability and lending criteria.

12. Can I consolidate other debts at the same time?

Often yes. If affordability allows, you can include debt consolidation within your loan so you have one fixed repayment plan.

13. How fast can I get the money?

Most people receive a personalised quote in around 7 minutes. If approved and you e-sign during processing hours, we aim to pay funds the same day. Bank cut-off times and extra information requests can affect timing.

14. What do I need to apply?

Have your NZ driver licence or passport, internet banking access (fastest) and details about your employment, income, expenses and living situation. Digital verification speeds things up.

15. Will applying affect my credit score?

Checking your rate uses a soft credit check and won’t affect your credit score. Making on-time repayments may help build your credit over time.

16. Can I repay early or make extra repayments?

Yes — you can repay early or make extra repayments anytime, with no early repayment fees. Paying sooner reduces total interest.

People also ask

1. Is a home improvement loan better than a mortgage top-up?

It depends on your timeframe, equity and total cost. A mortgage top-up can offer lower rates but usually extends repayment over many years, increasing total interest. An unsecured home improvement loan keeps the project separate with a fixed term and no security over your home. Compare options and planning tips in our Home Improvement Loan Guide for New Zealand.

2. How do I work out a realistic renovation budget?

Start with scope, get at least two quotes, and add a 10–15% contingency for overruns. Break the budget into materials, labour, council fees and “nice-to-haves”. See practical ideas in DIY or leave it to the experts? Where to save & splurge and room-specific tips in How To Finance Your Kitchen Renovation The Smart Way.

3. Do I need quotes before I apply?

No. You can apply and get a personalised quote first (soft credit check). Having estimates helps you choose the right amount and avoid shortfalls. For planning and financing options, see the Home Improvement Loan Guide for New Zealand.

4. DIY vs contractor: what’s best for my project?

DIY can save money for non-regulated work (painting, landscaping, cosmetic upgrades). Use licensed trades for structural, electrical, gasfitting and plumbing, and check warranty requirements. Read DIY or leave it to the experts? Where to save & splurge for a good decision framework.

5. Do I need council consent for renovations?

Some projects require consent (especially structural work). You’re responsible for approvals; build time and fees into your plan. For a broad overview of project planning and options, see our Home Improvement Loan Guide for New Zealand.

6. Can I use a home improvement loan for energy upgrades?

Yes — heat pumps, insulation, double glazing, solar and ventilation are common uses. These can cut running costs and improve comfort. Learn more in Solar Loans to power your home.