Dan Crawford
Working with an adviser gives you a professional starting point to explore your options before committing to a single lender or dealer offer. With a Loan Market adviser on your side, you can:
The primary difference lies in whether you provide an asset (like a car or property) as collateral to the lender.
In a secured loan, the lender takes a legal interest in your asset, which reduces their risk and often allows you to access higher borrowing limits and lower interest rates. However, if you default on the loan, the lender has the right to repossess and sell that asset to recover their funds.
In contrast, an unsecured loan (often called a “personal loan”) does not require any collateral, but because it is higher risk for the lender, it typically comes with a higher interest rate and stricter credit requirements.
A personal loan is a flexible financial tool that can be used for a wide range of lifestyle goals or unexpected costs. Many Kiwis use them to fund milestone events like weddings and holidays, or for practical purposes such as home improvements, medical expenses, or purchasing a new or used vehicle.
Beyond making purchases, personal loans are frequently used to consolidate multiple high-interest debts into one manageable monthly payment, which can simplify your finances and help you pay off your debt faster.
Most major New Zealand banks offer specialised Green Loans to finance sustainable home and transport upgrades. These loans are typically structured as a top-up to your existing home loan and offer heavily subsidised interest rates (often as low as 0% to 1%) for fixed terms of 3 to 5 years.
These loan products are a highly cost-effective alternative to standard personal loans for homeowners looking to reduce their environmental footprint and lower their long-term energy costs.
Under most New Zealand green loan schemes, you can finance a wide variety of eco-friendly improvements for your property. This includes energy-efficiency upgrades like heat pumps, high-quality insulation, and double or triple glazing to help maintain a healthy home.
You can also use these funds for sustainable energy systems such as solar panels and battery storage, as well as water-related upgrades like rainwater tanks and efficient water heating systems. Some lenders have even expanded their criteria to include flood and climate resilience measures.
Yes, electric transport is a major component of green financing in New Zealand. You can use these low-interest top-ups to purchase new or used EVs, plug-in hybrids (PHEVs), and even e-bikes at rates significantly lower than traditional car finance.
Some lenders also allow you to include the cost of a home EV charger and its professional installation within the loan, helping you manage the total upfront cost of switching to electric.
Many Kiwis choose to top up their mortgage to buy a car because home loan rates are generally lower than personal loan rates. However, if you spread a car repayment over 25 years, you could pay significantly more in interest overall.
Your Loan Market adviser can crunch the numbers to see if a separate short-term personal loan or a structured mortgage top-up is the most cost-effective path for you.
Every situation is unique, and a lower credit score does not automatically mean you cannot get financing. While “A-tier” lenders usually require a clean history, there are many specialist non-bank lenders in New Zealand who can provide secured loans to people with a few marks on their credit file.
If a loan isn’t the right path for you now, your Loan Market adviser can help you understand the specific steps required to improve your credit standing for a future loan application.
Let us know what your goals are and we will connect you with a Loan Market adviser directly.
Calculate how much you car loan repayments could be and the total amount you could pay in interest.
Determine your repayments and the total amount of interest you are likely to pay.
This calculator can show you how long it will take to pay off your balance.
