Australians will soon be able to receive a subsidized home loan if they purchased or build homes that meet high energy efficiency standards, with low-interest rates of 2.44 percent. The Clean Energy Finance Corporation is releasing a green home loan for borrowers.
For customers buying or building homes that meet or exceed a minimum of 7 stars under the Nationwide House Energy Rating Scheme (NatHERS), the discounted rate will extend for up to five years. Bank Australia is the first lender to introduce the scheme and will give a discount of 0.4 percentage points on its home loan rate.
NatHERS assesses a home’s energy efficiency based on its design and construction. The 7-star rating significantly exceeds the National Construction Code’s minimum standards, and homes built to that level need less heating and cooling requirements. The Bank Australia Clean Energy Home will draw on up to $60 million in CEFC financing, giving mortgage loan under $1.5 million the interest rate discount.
The CEFC funding is designed to fill a demand void, offering a financial incentive for builders and new homeowners to follow the principles of sustainable design from the project. The energy rating will be evaluated under the Nationwide House Energy Rating Scheme that provides guidelines for principles of sustainable design and building techniques for a range of climate zones across Australia.
According to CEFC’s investment department executive director Richard Lovell, the real estate sector accounts for almost a quarter of Australia’s greenhouse gas emissions. He says the design and construction of sustainable housing will boost energy and economic performance. The Bank Australia Clean Energy Home Loan will fund up to $60 million, giving mortgages under $1.5 million the interest rate discount.