As temperatures start to fall and energy bills rise, Australian homeowners are borrowing an average of $9,046 to make their homes more energy efficient, according to RateSetter's personal loan customer data. The peer-to-peer lender says that almost four in ten (37%) of its home improvement loans are now taken out for green renovations to help reduce energy bills.
Investment for the long term in energy efficiency makes good sense if you’re in your forever home as you'll reap the rewards long term. With as many homeowners borrowing money to improve the energy efficiency of their home as there are those making cosmetic or space-enhancing improvements, the idea is catching on.
RateSetter says the average renovation loan term is 43 months, during which time the cost of energy bills will continue to rise. Commenting on the trends, Daniel Foggo, CEO said, “We launched our Green Loan lending market 12 months ago and it’s been extremely successful, with almost 1,000 homeowners using low cost finance through RateSetter to purchase energy efficient and renewable energy products to improve their home. Many homeowners will often be better off in year one through reduced energy bills and recoup their investment in less than 10 years.”
The survey found that energy efficiency options such as solar heating, energy efficient lighting and alternative power sources were the most common reason for homeowners taking out their loans to renovate their homes, followed by interior makeovers and those improving their home for sale.
This article originally appeared on Home Beautiful.