Cheaper Home Loans for Greener Builds

In its latest announcement, the Commonwealth Bank of Australia stated that customers who undertake its Green Home Offer would have a standard variable rate of 1.99% per annum. This means that the owners of sustainably designed and constructed homes will be able to access cheaper home loans.

This rate is of course much lower than the 2.45% comparison rate and will be offered to owner-occupiers who make principal and interest payments, who have a Wealth Package and at least a 20% deposit.

Borrowers will need to meet either one of the two criteria:

• The home is certified as a Green Star Home by the Green Building Council of Australia

or,

• The home is rated 7 stars or greater, under the Nationwide House Energy Rating Scheme, has no gas, is electrified through the installation of a heat pump hot water system and has solar PV of a minimum size.

The initiative comes with the partnership between Commonwealth bank and the Green Building Council of Australia. The Executive General Manager of Home Buying for CommBank, Dr Michael Baumann, said the bank wants to reward new and existing customers who are taking actionable steps to reduce their environmental footprint.