The $125 million investment by Australian Government-owned Clean Energy Finance Corporation (CEFC) will support CommBank’s Green Home Offer to help cut emissions and improve energy efficiency in new and renovated homes.
CommBank’s Green Home Offer initially launched in May 2022 to provide customers access to a low standard variable home loan rate if the home meets eligible sustainability and energy efficiency requirements.
Since its introduction, a number of banks and non-bank lenders have followed suit, with the likes of NAB offering home loan discounts up to 1.00% p.a. on home loans, loans.com.au offering discounts on solar home loans and Suncorp Bank providing variable rate discounts on eco-friendly home improvements.
CommBank Executive General Manager Home Buying Michael Baumann said the bank was committed to rewarding new and existing customers who are taking actionable steps to reduce their environmental footprint.
“We know homes that are well built and are energy efficient are good for the environment, whilst also significantly reducing living costs and improving the wellbeing of homeowners,” Dr Baumann said.
“This sort of upfront investment is proving compelling in particular with the current increase of energy costs, which impacts the cost of living.”
In the past week, electricity provider Energy Australia increased energy costs by up to 14.1% or an average of $301 per year for residential households and 12.5% or an average of $641 for small-to-medium businesses.
CEFC Head of Debt Markets Richard Lovell noted the further development of the green home loan market in Australia demonstrates growing consumer demand for energy efficient homes.
“Expanding the green home loan program in Australia’s banking sector while continuing to strengthen sustainability requirements gives customers an accessible solution to reduce their carbon footprint,” Mr Lovell said.
CommBank’s Green Home Offer is available to customers who build or renovate to meet the ‘Green Star’ Home Standard requirements established by the Green Building Council of Australia (GBCA).
In addition, customers with eligible homes that meet criteria developed by CommBank with the GBCA and CEFC, but are not certified under ‘Green Star’ standards, are also eligible.
CommBank Green Home Offer eligibility
Customers may be eligible for the Green Home Offer if their home meets one of the following two options:
Option 1: MeetsGreen Building Council of Australia (GBCA) Green Star Home standard. |
Option 2: Meets all the following criteria. |
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Criteria |
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Documents to provide before formal approval |
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Documents to provide before funding approval |
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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.
Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | |
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5.99% p.a. | 6.51% p.a. | $2,396 | Principal & Interest | Variable | $0 | $530 | 90% | Disclosure | |||||||||||
5.84% p.a. | 5.89% p.a. | $2,357 | Principal & Interest | Variable | $null | $null | 60% | ||||||||||||
5.24% p.a. | 6.24% p.a. | $2,206 | Principal & Interest | Fixed | $350 | $0 | 90% | ||||||||||||
5.82% p.a. | 5.82% p.a. | $2,352 | Principal & Interest | Variable | $0 | $0 | 80% | ||||||||||||
5.84% p.a. | 5.89% p.a. | $2,357 | Principal & Interest | Variable | $0 | $500 | 60% | ||||||||||||
5.88% p.a. | 6.38% p.a. | $2,367 | Principal & Interest | Variable | $350 | $0 | 90% | ||||||||||||
5.95% p.a. | 6.23% p.a. | $2,385 | Principal & Interest | Variable | $299 | $0 | 80% | ||||||||||||
6.14% p.a. | 6.85% p.a. | $2,434 | Principal & Interest | Variable | $0 | $720 | 90% | ||||||||||||
7.64% p.a. | – | $2,835 | Principal & Interest | Variable | $25 | $0 | 70% | ||||||||||||
6.19% p.a. | 6.58% p.a. | $2,447 | Principal & Interest | Variable | $0 | $530 | 90% | Featured 90% LVR |
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Image by Alexander Abero via Unsplash
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