With buildings in Australia accounting for nearly 25% of carbon emissions it is not surprising that buyers are looking to build more sustainable homes.
A 2020 CSIRO study found that more than 9 million homes in the country do not meet the 7 star Nationwide House Energy Rating Scheme (NatHERS) rating that deems a property sustainable. With only 10% of new homes built received a 7-star rating or higher.
Thus, with the target of building more 7-star energy rating homes, banks and lenders are now offering special green home loans to borrowers that are buying or building eco-friendly homes.
A green home loan is a type of loan that encourages borrowers to buy, build or renovate their homes in an environmentally friendly way. These loans offer discounted rates for homes that pass an eco-friendly threshold. In order to qualify for one of these loans, your future house should pass at least one of these qualifications:*
*Specific qualifications will vary from lender to lender
Green home loans befit borrowers that are environmentally cautious or those who want to play a role in building a sustainable future.
Some of the rewards of a green loan are:
Make sure to compare home loans and green loans to find the cheapest option for you.
Green home loans are exclusive to homes that meet certain environmentally friendly benchmarks that’s described by the lender.
Each lender has different criteria for their green home loans. Our best advice for you to check the lender’s product information on their website.
With the Clean Energy Finance Corporation (CEFC) committing over $120 million into funding green home loans, more lenders are starting to offer this product including: