Installing Heating and Insulation: What Financial Support is Available?


Ensuring your home is heated and insulated this winter can help keep you cosy and help keep the power bills down. So if you’re looking to get your home winter ready, what financial support is available? Canstar looks at a number of heating grants and loans out there to help with the costs.

Kiwi homes are (unfortunately) known for being mouldy and damp. And one of the biggest contributors is inadequate insulation and heating. Small electric heaters are popular as they are cheap to buy. But they aren’t appropriate for heating large spaces and aren’t energy efficient. While proper insulation is a large expense that many can’t afford.

The high cost of efficient and effective heating and insulation is why so many of us are stuck piling on the layers in the winter months, instead of sitting pretty under a heat pump.

But there are a handful of initiatives in play to help Kiwis get cosy, by helping fund insulation and heating expenses. So if you’re looking to review your heating and insulation setup, before the winter cold kicks in, Canstar goes over what financial support is available to you.

Man installing insulation

Pay for heating and insulation with your mortgage

Most banks will allow the costs of insulation and other energy efficiency products to be added to home mortgages. The costs can be incorporated into your existing mortgage over the same term, or as a shorter-term loan at the same interest rate. In some cases, you may even be able to get the loan interest-free!

Insulation, heat pumps, and ventilation can generally be added, but ask your bank specifically what they cover. 

ANZ, for example, offers interest-free home loan top-ups for healthier homes. You can apply for interest-free home loan top-ups of up to $5000 for insulation and up to $5000 for heat pumps, payable over four years.

Compare home loans here with Canstar

The Warmer Kiwi Homes program

The Warmer Kiwi Homes program covers up to 80% of the cost of ceiling and underfloor insulation, and up to 80% of the cost of an approved heater (including a heat pump).

Not everyone is eligible, so you will need to check if it’s an option for you. Some of the requirements include:

  • You own and live in a home built before 2008
  • Have a Community Services Card or live in an area identified as low-income
  • Your home doesn’t have ceiling and underfloor insulation.

You can check the full eligibility criteria here.

Help from your local council

Some councils offer the option to pay for insulation and heating through a loan. This loan is added to your rates, and paid off as you pay your rates. Not all councils offer this option, and not all households may be eligible, so if you’re interested in this option you’ll need to speak with your local council.

Other tips for a warm home

  • Stop draughts – if a home is prone to draughts it can be more difficult and expensive to heat. Blocking draughts is usually cheap and easy. From doors and windows, to chimneys and fireplaces, ceilings and floors, electrical and plumbing passages, extractor fans and recessed downlights.
  • Consider how much heat you actually need –  it’s worthwhile considering how much heating is needed for your household, and, in determining the level required, how to maintain a balance between potential overheating and under-heating. As a general rule, only heat the room that you are in. Try to keep the temperature between 18C and 21C.
  • Make smart electricity decisionsmaking smart moves across the range of appliances used in a household can help to drive down electricity costs during the winter months.
  • Compare electricity providers – Reducing your electricity usage isn’t the only thing to consider. It pays to weigh up how much you’re paying for the actual electricity being used. Which is where Canstar can help!

Comparing electricity providers

If you’re unsure you’re getting the best deal, Canstar Blue can help. We rate NZ power companies for customer satisfaction and value for money, see the table below for some of the results, or you can click on the button below for the full results of our survey.

Canstar Blue’s latest review of NZ power companies compares them on customer satisfaction. The table below is an abridged version of our full results, available here.

See Our Ratings Methodology

Compare electricity providers with Canstar Blue!

author andrew broadley

About the author of this page

This report was written by Canstar Content Producer, Andrew Broadley. Andrew is an experienced writer with a wide range of industry experience. Starting out, he cut his teeth working as a writer for print and online magazines, and he has worked in both journalism and editorial roles. His content has covered lifestyle and culture, marketing and, more recently, finance for Canstar.

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