Banks waive mortgage top up fees for insulation spending (Update 1)

Kiwibank, Westpac and BNZ have confirmed they will drop their fees for customers seeking to top up their mortgages in order to install insulation and better heating in their homes. (Updates with Westpac and BNZ confirming they will drop their fees too) This follows yesterday's budget, which included the offer of a NZ$1,300 grant to anyone with a poorly insulated home built before 2000 who wished to install insulation in their home. Anyone who is already insulated can apply for up to NZ$500 to pay for clean heating devices. Kiwibank spokesman Bruce Thompson said that the government had advised the bank how the scheme would operate and Kiwibank waived its NZ$200 fee "as a gesture of support." "The Government grants will not necessarily cover all the costs associated with the scheme," Kiwibank said. "It is in everybody's best interest to use energy wisely. The Government's objective is to make more New Zealand homes warm and dry. We can help by waiving our normal charges for our home loan customers who will be spending more than covered by the Government grant and are seeking borrowed funds secured against their home," CEO Sam Knowles said. Westpac said it would waive its NZ$250 fee for top-ups and also waive personal loan fees for those without a mortgage. A BNZ spokeswoman said BNZ had agreed to waive its fees as part of an industry wide agreement with Energy Minister Gerry Brownlee