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Discount home loans offered to green Aussies

Anastasia Santoreneos
Aussies with sustainable homes offered cheaper home loans. Source: Getty
Aussies with sustainable homes offered cheaper home loans. Source: Getty

Australians who promise to buy or build a sustainable home will be eligible for rock-bottom interest rates on their home loan, according to a new scheme from the government’s Clean Energy Finance Corporation (CEFC).

Bank Australia is the first bank to offer the Clean Energy Home Loan, which offers rates as low as 2.44 per cent (per annum fixed or 2.78 percent variable) to customers who achieve a seven or above (out of 10) Nationwide House Energy Rating Scheme score, on mortgages of up to $1.5 million.

If the property doesn’t achieve a rating of seven or above, it will also be considered for the competitive interest rates if it reaches:

  • A Residential Efficiency Scorecard rating of 7 stars or higher;

  • A Passive House Certification; or

  • A Green Star (design & as built v1.2 score of 8 points or higher on the credit 15 Greenhouse Gas Emissions)

According to Bank Australia, the Clean Energy Home Loan offer will also be extended to customers making “ambitious green upgrades” to their property in the coming months.

“Our research tells us that our customers care deeply about sustainability and climate change, which was a big driver for us to launch a home loan that supports them to reduce the environmental impact of their homes,” said Bank Australia managing director Damien Walsh.

“The Clean Energy Home Loan is a great example of how the business of banking is an essential part of the solution to the climate crisis.”

Walsh said housing decisions made today impact the future, with heating, ventilation and air conditioners making up the bulk of home emissions.

“I want a future where every buyer asks for the energy efficiency certificate when they inspect a property, for real estate websites to have a ‘7+ stars’ filter (that brings up pages and pages of homes) and real estate agents to promote energy efficiency ratings as a key selling point.”

The Bank Australia Clean Energy Home Loan is backed by a $60 million investment by the CEFC, and is a 40 basis-point reduction on the comparable Bank Australia Premium Package Home Loan rate (3.15 per cent per annum).

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