Bank Australia will offer a 30 basis point discount (0.30% p.a.) off its home loans if customers have an energy efficient home.
Bank Australia's Eco Plus Clean Energy Home Loan has increased incentives for new homes that have a Nationwide House Energy Rating Scheme (NatHERS) rating of 7.5 stars or higher plus a solar system.
Backed by an investment of $30 million from the Clean Energy Finance Corporation (CEFC), new homes may be eligible for a discount of 0.30% p.a. for up to five years on their home loan interest rate.
The mutual bank offers three different ways to access their Clean Energy Home Loan product, in the form of 'Eco', 'Eco Upgrade' and 'Eco Plus'.
Eco and Eco Upgrade products are eligible for a 0.20% p.a. discount, with the Eco Plus product eligible for the increased 0.30% p.a. discount depending on eligibility criteria.
Customers can qualify for the Eco Plus Clean Energy Home Loan by achieving a NatHERS rating of 7.5 stars with the addition of solar panels or by using the new Green Star Homes certification from the Green Building Council of Australia.
The Eco Plus Clean Energy Home Loan product for customers with a maximum loan-to-value ratio (LVR) of 90% offers a variable rate of 2.15% p.a. (2.73% p.a. comparison rate*).
Clean Energy Finance Corporation CEO Ian Learmonth said the organisation is pleased to continue working with Bank Australia to provide Australians with added incentives to choose greener options for their homes.
"Building homes that have strong energy efficiency measures today creates more resilient cities and regions for the future," Mr Learmonth said.
"At the same time, incentivising new home buyers and builders to adopt stronger sustainability design standards is an important step in reducing our carbon footprint as we transition towards net zero emissions."
Last week, Suncorp announced the introduction of a 'Green Upgrades' home loan launching at the end of June to help Aussies save money on electricity bills while making a positive difference for the environment.
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Building or buying an energy-efficient home? This table shows some of the lowest interest rates in the market for 'green' home loans.
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| FEATUREDGET A DISCOUNTED GREEN RATE* | Green Home Loan (Principal and Interest)
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Green Home Loan (Principal and Interest)
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| Variable | More details | ||||||||||||
| FEATUREDGET A DISCOUNTED GREEN RATE | Green Construction Home Loan (Interest Only)
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Green Construction Home Loan (Interest Only)
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| Variable | More details | ||||||||||||
Eco Home Loan (New Customer) (LVR < 60%)
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Eco Home Loan (New Customer) (LVR < 60%)
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| Variable | More details | ||||||||||||
Green Home Loan (Principal and Interest) (LVR < 80%)
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Green Home Loan (Principal and Interest) (LVR < 80%)
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| Variable | More details | ||||||||||||
Green Offset Home Loan 90 (Interest Only) (LVR < 90%)
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Green Offset Home Loan 90 (Interest Only) (LVR < 90%)
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| Variable | More details | ||||||||||||
Sustainable Home Loan (Principal and Interest)
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Sustainable Home Loan (Principal and Interest)
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- Fast turnaround times, can meet 30-day settlement
- For purchase and refinance, min 20% deposit
- No ongoing or monthly fees, add offset for 0.10%
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of June 29, 2022. View disclaimer.
Image by Wynand van Poortvliet via Unsplash
