Green Home Loan Incentives

Green home loans are loans designed to reward customers for doing their bit for the environment. With increasing energy costs and growing concern for the climate crisis, many people are looking at buying or building homes that have environmentally friendly features. If this is you, you might be eligible for a ‘green home loan’ and discounted interest rates on your mortgage.

What makes a home ‘green’?

Green homes are more energy efficient. They require less energy for heating and cooling and therefore cause less greenhouse gas emissions. Green homes also generally enjoy lower power costs.

What is required to classify as a ‘green home’ differs from lender to lender however your home will typically have at least one of the following:

  • A 7 Stars or higher rating under the Nationwide House Energy Rating Scheme (NatHERS). You can obtain a NatHERS certificate by having your home assessed by an accredited NatHERS assessor or a certificate is usually produced when the home is designed, so if you still have your plans, you may find the NatHERS rating there.
  • A Residential Efficiency Scorecard with a rating of 7 stars or more
  • Passive House Certification
  • A Green Star, Design and As Built Score of 8 points or more.  

Some things you can do to improve the energy efficiency of your home to help your green home classification include:

  • Orient your house to make the most of shade and solar access
  • Use double and triple glazing on your windows
  • Use wall, floor and ceiling insulation where possible
  • Include ceiling fans
  • Install solar panels for solar power use

What discounts are available?

There are many lenders offering green home loans and the discounts and the length of time the discount is available varies. As an example, however, there are products available that offer a discount of up to 0.95% on the standard variable rate for 5 years.

There are also products that provide discounted home loan rates for homes that have eligible solar panels installed. A lower interest rate is available for the first 5 years of the loan, and you just need to provide proof of purchase of the solar panels if they’re already installed or a quote if installation is planned to find out if your system qualifies.

There are also low interest fixed rate loans available for undertaking ‘green’ home improvements such as installing solar panels, battery packs, electric vehicle charging stations and energy-efficient window treatments.

Ask our residential brokers for more information on the green home loan incentives currently available.

Disclaimer: General information is provided and has been prepared without considering your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal; tax or financial advice and you should always seek professional advice in relation to your individual circumstances.

Offers, information and interest rates provided are valid and available at time of publication but are subject to change. All information pertaining to loans are subject to lenders terms and conditions and fees and charges and eligibility criteria apply. Although every effort has been made to verify the accuracy of the information, we disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.

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