Cheap reno cash as movers stay on the sidelines
ANZ Bank New Zealand has launched a 2.5% three‑year fixed “Reno Loan” top‑up, giving eligible home loan customers a low‑rate option to fund renovations of up to $50,000.
The loan is available to owner‑occupiers with at least 20% equity (30% for investment properties) and can be used for projects starting from $3,000, from painting and landscaping through to bathrooms, kitchens, and roofing.
Over a three‑year term, ANZ estimates a $50,000 Reno Loan could save around $2000 in interest compared with a 5% top‑up rate, which may appeal to households trying to preserve borrowing capacity amid higher mortgage rates and cost‑of‑living pressures.
The move reinforces a clear post‑COVID shift: more Kiwis are choosing to stay put and improve rather than sell into a softer market, with many homeowners now seeing renovation as the path to their “dream home”.
“In the current environment many Kiwis are choosing to renovate rather than relocate and we’re really pleased to be launching this offer for customers keen to get cracking on their renovation plans,” said ANZ managing director for personal banking Grant Knuckey (pictured) in a media release.
Bathrooms lead the wish‑list as costs hold people back
Survey work by ANZ found a large cohort of customers intend to renovate in the next few years but are being held back by cost. More than three‑quarters of those planning to wait at least six months cited cost as a key reason for delaying projects, even as they balance rising mortgage repayments with day‑to‑day expenses.
Bathrooms top the current reno wish‑list at 38%, followed by painting at 27% and kitchens at 24%, with decks, flooring, windows, and solar also popular.
Knuckey said customers like the flexibility of a dedicated top‑up to stretch budgets further.
“Offers and top up products like the Reno Loan are popular with our customers, they like having a bit of extra cash back in their pocket, either as a saving or to help make the renovation project go a little further,” he said.
The bank is also nudging borrowers toward more energy‑efficient homes, noting that some projects – such as windows, insulation, and solar – can be combined with ANZ’s existing 1% Good Energy Home Loan for eligible upgrades.
Renovations proving steadier than new builds
ANZ senior economist Matthew Galt said renovations have held up better than other parts of the housing market through recent swings.
“Renovations tend to be one of the steadier parts of the housing market through economic ups and downs,” Galt said.
Consent data back that up. New‑build consents have fallen far more sharply from their peak than consents for alterations and additions, and Stats NZ figures show the value of residential renovation consents edging higher over the year to January 2026.
Galt said there are “early signs that interest in renovations is increasing following the fall in interest rates”, although it will take time for that to flow through to completed work.Low‑rate offers like the Reno Loan, alongside existing “green” lending products for energy‑efficient upgrades, give homeowners more structured ways to unlock equity and fund projects, especially those who prefer to upgrade their current property rather than risk selling in an uneven market.
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