Australia’s ‘cheapest green building loan’ launched

An online lender offers an incentive for home builders to go green.

In addition to Australia’s booming green finance market, Loans.com.au has launched a green construction loan which it says is the cheapest in the country.

Borrowers can benefit from a discount of up to 1.59% on their construction loan during the first five years of the loan, reducing the rate to 2.08% per year (comparison rate of 2.39% per year * ).

Investors can get a discount of up to 1.18% pa, bringing the rate to 2.59% pa (comparison rate of 2.90% pa).

The lender also lowered the interest rate on its owner-occupied home loans from 0.4% to 2.08% per annum (benchmark rate of 2.36% per annum) for new homes under $ 12. month.

To qualify for any of these discounts, the home must have an energy rating of seven stars according to the Nationwide House Energy Rating Scheme (NatHERS).

The rating system ranges from 0 to 10 and is judged on the layout of the home, construction methods and materials, and the amount of cooling or heating occupants may need to stay comfortable throughout. of the year.

Loans.com.au chief executive Marie Mortimer said the lender believes green products are the future of lending and customers will benefit from an environmental conscience.

“Our Green Building Loan and Green Home Loan will save Australian families thousands of dollars and reward them for choosing to build or buy a more eco-friendly, energy-efficient home,” said Ms. Mortimer said.

“We’ve seen a change in recent years: Consumers are now looking for more sustainable options, and that extends to their finances. We have been proactive in creating products that meet the needs of the future and ensuring that our loans pave the way for sustainability.

“Borrowers simply need to show us the NatHERS seven-star home rating from an accredited appraiser, which is usually always included in the construction plan for all new buildings, and the application will go through our regular approval process.”

Ms. Mortimer recommended that borrowers speak with their builders to ensure they could achieve the NatHERS rating.

The launch of the green construction loan follows Loans.com.au’s green car loan discount, which was launched in 2018, gives borrowers access to a reduced rate of 3.97% per annum ( comparison of 4.51% per year) for environmentally friendly electric and hybrid vehicles.

The discounted green loans were made possible through the partnership of Loans.com.au’s parent company, Firstmac, with the Clean Energy Finance Corporation (CEFC) and Japan’s Norinchukin bank.

The three came together to raise $ 750 million in Australia’s first “green” mortgage-backed security, where all of the underlying mortgages are secured by eco-friendly housing.


Photo by Nacho A on Unsplash


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