Home loan discount for sustainable builds and renos
Australians building or renovating their homes with solar panels and no gas will benefit from a $125 million investment to improve access to sustainable housing.
Under a new agreement between the Clean Energy Finance Corporation (CEFC) and the Commonwealth Bank of Australia (CBA), the federal government will provide a $125 million investment to CBA's Green Home Offer.
The offer is expected to encourage home builders and renovators to construct dwellings that meet high energy efficiency standards.
This includes battery-ready solar panels, electrification and heat pump water systems.
Research by Green Building Council Australia shows improved energy efficiency, and the installation of solar PV reduces household energy bills by at least $800 a year.
The CEFC finance, provided to eligible CBA customers as part of the investment, supports a discount of up to 0.18% p.a. on standard variable rates over a five-year period, equally split between the CEFC and the Commonwealth Bank.
For example, on a loan balance of $750,000 and with a discount of 0.18% p.a., customers could save about $1,350 in interest in the first year of the loan.*
Minister for Climate Change and Energy Chris Bowen said improving household energy efficiency was integral to easing cost-of-living pressures.
"It's great to see the CEFC, the world's biggest green bank, make smart partnerships to incentivise energy efficient homes," Minister Bowen said.
"Powering homes with battery-ready solar PV, as well as installing better insulation and windows, will help households cut power bills and emissions."
CommBank's Executive General Manager of Home Buying Michael Baumann said they wanted to reward new and existing customers who are taking steps to reduce their environmental footprint.
"We expect all residential homes to be built to these standards over the coming years as we move towards a net zero future and by introducing the new Green Home Offer we want to encourage customers to take steps now to protect the environment and their home," he said in April last year.
"We know homes that are well built and energy efficient are good for the environment whilst significantly reducing living costs and improving the wellbeing of homeowners."
To be eligible for the Green Home Offer, houses must meet a 7-star rating under the Nationwide House Energy Rating Scheme and incorporate a range of initiatives under the Green Building Council of Australia's 'Green Star' Home Standard.
WHO CAN GET A GREEN HOME OFFER:
* Your home is a certified Green Building Council of Australia (GBCA) Green Star Home or; your home meets all of the following criteria:
- Nationwide House Energy Rating Scheme (NatHERS) = 7 stars or greater
- Electrified through installation of a heat pump hot water system and no gas
* Calculation based on current rates for eligible Green Home Offer customers with an owner-occupied principal and interest 30-year home loan with a wealth package and an LVR of 80%.