The Government is considering changes to the "Welcome Home" loan, because of disadvantages to homeowners who want to apply for subsidised home insulation.
The scheme, administered by Housing New Zealand, was created to help low to middle income earners buy a home.
It allows for borrowing of up to $350,000, but homeowners cannot borrow extra money on top of that. Several thousand people have applied for a loan.
One borrower, Tenoch King, says that is unfair because she cannot apply to have her home insulated by the Energy Efficiency & Conservation Authority.
She says she would have to take out another loan at a higher interest rate.
Housing Minister Phil Heatley says changes are being considered that would allow people to also apply for the Heat Smart scheme.