Green Home Loans Offer 2.44%
Australians will soon be able to get a discounted home loan if they buy or build housing that meets high energy efficiency standards, with rock-bottom interest rates from 2.44%.
The Clean Energy Finance Corporation is launching a green home loan program for borrowers who meet a minimum 7-star energy rating.
Bank Australia is the first lender to offer the scheme and will grant a 0.4 percentage point discount on its home loan rate.
The energy rating will be assessed under the Nationwide House Energy Rating Scheme which provides guidelines for sustainable design principles and construction techniques for a range of climate zones across Australia.
The property sector accounts for almost a quarter of Australia’s greenhouse gas emissions, according to the CEFC’s investment team executive director Richard Lovell. He says sustainable housing design and construction could improve energy and economic outcomes.
The Bank Australia Clean Energy Home Loan will fund up to $60 million, providing the interest rate discount to mortgages below $1.5 million.