NAB home loan customers with up to 80% loan-to-value ratio (LVR) will benefit from a lower base variable rate, with a discount of up to 1.00% p.a. on their home loan.
For a NAB owner occupier customer making principal and interest (P&I) repayments, this means they may be eligible to receive an interest rate of 4.49% p.a.
Further, NAB home loan customers are also eligible to receive a 5% rate reduction on the cost of Lenders Mortgage Insurance (LMI) through NAB’s insurance partner QBE.
NAB notes these offers are available to customers purchasing new or existing homes or refinancing.
New or existing homes must have a NatHERS 7-star rating or a Green Building Council of Australia Green Star rating to be eligible.
NAB Executive Home Ownership Andy Kerr said the move is an important step in addressing cost of living pressures through energy efficiency.
“NAB is making it easier for customers to reduce energy bills and home loan repayments with the choices they make on the type of home that they buy,” Mr Kerr said.
“This will also provide first home buyers with additional support to enter the housing market by reducing the cost of lenders mortgage insurance.”
As a partner of QBE, Bank Australia will also offer a 5% rate reduction on the cost of LMI.
The introduction of these offers comes as PRD research released last week revealed living within close proximity to renewable energy projects such as wind and solar farms has the ability to create a positive multiplier effect for local regions.
PRD Chief Economist Dr Asti Mardiasmo said while residing within 100 metres of a renewable energy plant may not be ideal, the surrounding area strongly benefits through the drop in energy prices.
"The average price growth over the past one, two, and five years has been 6.5%, 7.8%, and 41.0%, according to data on previous renewable energy projects," Dr Mardiasmo said.
"This is largely because rising inflation and economic growth have increased living expenses, making any decrease in expenses especially power, a significant deciding factor when choosing where to buy real estate."
Electricity prices are tipped to grow a further 35% in 2023, with the Treasurer warning this factor will be the most problematic aspect of inflation over the next six or nine months.
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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 | LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.19% p.a. | 6.58% p.a. | $2,589 | Principal & Interest | Variable | $0 | $530 | 90% | Featured 90% LVR |
| |||||||||
5.69% p.a. | 6.37% p.a. | $2,319 | Principal & Interest | Fixed | $350 | $0 | 90% | |||||||||||
5.84% p.a. | 5.89% p.a. | $2,357 | Principal & Interest | Variable | $0 | $0 | 60% | |||||||||||
5.95% p.a. | 6.23% p.a. | $2,385 | Principal & Interest | Variable | $299 | $0 | 80% | |||||||||||
5.98% p.a. | 6.42% p.a. | $2,393 | Principal & Interest | Variable | $350 | $0 | 90% | |||||||||||
5.99% p.a. | 6.51% p.a. | $2,589 | Principal & Interest | Variable | $0 | $530 | 90% | |||||||||||
6.14% p.a. | 6.19% p.a. | $2,434 | Principal & Interest | Variable | $0 | $0 | 60% | |||||||||||
6.20% p.a. | 6.38% p.a. | $2,450 | Principal & Interest | Variable | $0 | $0 | 80% | |||||||||||
6.64% p.a. | 6.67% p.a. | $2,565 | Principal & Interest | Variable | $0 | $250 | 95% |
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