Albany woman Lyn Mayes wanted an environmentally friendly front door.

Interesting, but not out of the realms of possibility, one would have thought.

But "nobody understood what I was asking for. My builder didn't understand," Mayes says. In order to source her Forest Stewardship Certification (FSC) Canadian cedar front door she says she had to literally phone just about every supplier herself until she found one who knew about the FSC system of ensuring wood has been sustainably harvested.

Lyn Mayes' front door is a small point, but it's indicative of how behind the green eight-ball New Zealand is.

Westpac will soon become the first New Zealand bank to offer a 'green' home loan. When the product launches next March, it will be the Kiwi financial sector's debut in a market that has been gaining momentum overseas for years.

The Westpac green mortgage will be a reproduction of a loan it offers in Australia. When the customer takes out a home loan, they will receive a package of discounts on eco-friendly products for their home - anything from solar water heating systems and insulation to eco-lightbulbs.

It's one example of a burgeoning market for green financial products that is well established in countries such as the United Kingdom, the United States and Australia.

Dan Heywood, director of sustainable home developer Arhaus, says New Zealanders don't realise how far behind we are on such issues. He says the US may be the biggest polluter on the planet, "but in terms of the whole green movement and solar technology they're streets ahead."

Bendigo Bank was the first in Australia to write green mortgages and personal loans, and now offers 12 products. Bank executive Marnie Baker says it offers a half a per cent interest rate discount on mortgages for houses which meet the Australian five-star energy rating, and on loans to buy other environmentally-friendly products such as hybrid cars and double glazing.

She says it's a small but growing part of Bendigo's loan portfolio. Baker believes it's growing because people are increasingly in tune with environmental issues and have realised "that they can personally make a difference".

"Given what we're going through here in Australia with droughts, people are very, very aware." She says loans for water-saving initiatives such as grey water treatment systems are becoming popular.

One theory about the commercial advantages of green mortgages is that because the owner of an eco-home will be saving money on energy usage, they can afford to service a bigger home loan. Baker says while Bendigo is aware of this benefit, green loans are part of its overall sustainability agenda. It is currently building a new $100-million head office facility in Bendigo, which has become the first development in regional Australia to receive a 'green star rating' from the Green Building Council.