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Are you planning to buy or build a new home this year? Then you might want to consider going green and investing in an eco-friendly residence, as it can now save you money on your home loan.
The federal government’s Clean Energy Finance Corporation has invested $60 million into a green home loan program for borrowers whose potential homes meet specific criteria, and the first lender who is participating in the scheme is Bank Australia.
The financial institution is now providing the Bank Australia Clean Energy Home Loan which allows eligible applicants access to a 0.04% discount on their home loan interest rate for up to 5 years, given the mortgage is below $1.5 million.
To be eligible for the Clean Energy Home Loan the property you plan to buy or build must achieve a minimum of 7 stars according to the Nationwide House Energy Rating Scheme. Keep in mind, the minimum standard in most states and territories is 6 stars, so you’ll need to do your homework.
If you’re interested in the loan, it is currently available via Bank Australia’s Premium Package Home Loan for new and existing customers, including refinancers.
Lower interest rates are also available to borrowers with a loan-to-value ratio of below 70%. You can get a 2.44% two or three-year fixed rate, depending on your financial circumstances. The Clean Energy Home Loan is also available at a variable rate of 2.78% p.a. (3.39% p.a. comp rate) for those borrowing over $500,000 at an LVR of less than 70%.
Not planning to buy or build? Just be patient, and you, too, might be rewarded. Bank Australia has said that it plans to extend the benefits of the Clean Energy Home Loan for existing homeowners that add eligible sustainable upgrades to their home, such as energy monitoring and energy storage systems, solar hot water and energy efficient air conditioning.
So, why not save yourself some money – and the environment – by investing in a home with a high clean energy rating?
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The BHG guide to home ownership
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