Home buyers offered mortgage discount for energy efficient homes

sustainable house
Prospective home owners can now secure discounted finance to build or buy a home with a 7-plus star rating under the Nationwide House Energy Rating Scheme, like these DecoHousing units in Denmark, WA, which score between 8.8 and 9.3 stars on the NaTHERS scale.

A new green home offered by Bank Australia will offer allow prospective home owners to secure discounted finance to build or buy a home with a 7-plus star rating under the Nationwide House Energy Rating Scheme (NatHERS).

A 7 star home is more energy efficient than most, with six stars currently the minimum NatHERS standards in the National Construction Code.

The Clean Energy Finance Corporation is providing $60 million in finance for the new Bank Australia “Clean Energy Home Loan”, which will allow eligible borrowers to secure a 0.4 per cent discount on their home finance.

“Working in partnership with the CEFC means we can bring this innovative new product to market sooner, and help more Australians reduce the impact their homes have on the environment,” Bank Australia managing director Damien Walsh said.

The interest rate discount will be available to customers via the bank’s Premium Package Home Loan to mortgages below $1.5 million.

CEFC chief executive Ian Learmonth said the new loan will “fill a gap in the market”, with green mortgages yet to take off in Australia despite Bendigo Bank becoming the first Australian bank to offer a green home loan product way back in 2002.

Mr Learmonth also said the offering will encourage builders and new homes to adopt NatHERS design principles from the start.

“Cutting energy demand is a low-cost way to decarbonise the property sector and reduce stress on the electricity network,” he added.

The notion of green home finance is gaining traction around the world, with 37 thirty-seven European launching an energy efficiency mortgages pilot scheme in 2018.

The participating banks in the trial hope to find that the loans represent a lower risk on the balance sheet as borrowers are less likely to default on their repayments if they have lower energy bills.

Tags: , , , , ,

Comments

2 Responses to “Home buyers offered mortgage discount for energy efficient homes”

  • Tim Renouf says:

    Sadly the House Energy Ratings have never been validated by measuring real houses across all Australian climatic conditions. HERS is substantially based on the blind belief that “more insulation is better”, which directly means that R7 bulk insulation in ceilings alone is actually happening right now in Melbourne construction, without any regard to high radiant energy loads striking houses.

    The Building Code does not account for heat stress resilience in housing. Its a fact. Ask the ABCB and discover the truth.

    For a full explanation about the problems with HERS and insulation levels, view wwww.afica.org.au and go to REPORTS, then TIMELINE 1952-2019.

  • Finally !!!!!
    This is great news. I started building energy efficient ICF homes in 2006 and have heard that banks all over america have these loans and it’s finally here in Australia.
    Kudos to Bank Australia.
    I’ve been trudging the halls of Home Expos for 2 decades now looking for the latest and greatest and I thought ICF’s would be the answer to our countries heat, humidity, cyclones and other weather patterns but I’d almost given up bashing my head against the proverbial brick wall.
    As my existing clients know, their utility bills are already lower (to be fair they did pay a little more for the build) but they all tell me the quality of air and quality of life inside these homes is worth the cost.
    And now, something more substantial … something real … that does more than just pay ‘lip service’ to the concept of building energy efficient homes … it rewards people.
    I’m so delighted to see this finally coming in to the country.
    Sincerely,
    Steve Christo
    CBS Build
    ECO Block NSW

Comments are closed.

More Articles on this Topic