Homestar-certified homes offer major long-term savings, Infometrics research shows
New research from Infometrics has revealed that investing slightly more in a Homestar-rated home could lead to savings of up to $98,000 over the life of a mortgage, thanks to reduced interest rates and lower energy bills.
“There’s a financial advantage, there’s an environmental advantage—a bit of a housing match made in heaven,” said Brad Olsen (pictured), CEO of Infometrics.
While these homes cost just 0.5% to 1% more to build, the long-term payoff is clear—especially at a time when mortgage arrears have climbed to an eight-year high, with over 24,000 home loans now past due.
Discounted loans and energy efficiency drive financial benefit
Homestar-rated homes, certified by the New Zealand Green Building Council, are designed to be warmer, drier, healthier, and more energy-efficient.
The Infometrics report found that these properties qualify for ANZ’s Healthy Home Loan package, which offers 0.25% lower interest rates than standard mortgage deals—saving buyers around $40,000 over 30 years.
Though power bill reductions are smaller, they’re still meaningful. Olsen said standalone homes could see annual electricity savings of $435, with projections showing that figure could rise to between $580 and $900 by 2050 as power prices climb.
“Although a Homestar house costs you more up front, you repay that [difference] within a couple of years, and you actually make money compared to another house over the lifetime of your ownership and paying down your mortgage,” Olsen told OneRoof.
Potential savings reach nearly $100,000
Depending on location and property type, total savings over a 30-year loan range from $62,800 for a terraced home in Auckland to $98,000 for a standalone home in Wellington.
“It’s not often that we do this analysis, and it becomes very clear very quickly that this is definitely worth doing,” Olsen said.
Awareness of green home finance options remains low
Despite the financial upside, only 13% of new homes consented in 2020 (around 5,000 dwellings) were Homestar certified. Olsen believes this is largely due to a lack of awareness around green mortgage incentives.
“Not many people realised there were cheaper loans available for greener homes,” he said.
Currently, ANZ is the only major bank offering such discounts, but Olsen predicts more lenders will follow suit.
“The banks will look at it and go, ‘Look, we keep wanting to walk a stronger walk on sustainability and this is how we can do it,’” he told OneRoof.
Green homes benefit owners, lenders, and builders
Andrew Eagles, CEO of the New Zealand Green Building Council, said the perception that green homes cost significantly more is outdated.
“This report confirms what we’ve long known; building better homes is a win for healthier New Zealanders, the planet, and are clearly more affordable in the long run,” Eagles said.
“The research shows you can be $60,000 better off through your mortgage—effectively giving you two years less on your mortgage. And you get a healthier place, and you get lower bills.”
Builders and developers can also benefit. Eagles noted that banks are beginning to offer lower interest development finance for sustainable projects.
“That can save them huge amounts,” he said.
Public interest in green living is growing
Eagles compared the growing appeal of Homestar homes to the shift in sentiment around electric vehicles.
“People will just say, ‘I’m not going back to a building code house, I want quality for my family,’” he said.
