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Green Home Loans

What is a Green Home Loan?

A Green Home loan is one that rewards borrowers for either buying, building or renovating a property to make it sustainable and energy efficient.

Some of the ways borrowers are rewarded for going green are:

  • Banks and lenders offer discounts on their home loan interest rates.
  • Cashbacks and rebates from local, state and federal governments.
  • Offer higher LVR of up to 95% on home loans.
  • Some banks even provide additional funding to support sustainable home improvements.
  • Borrowers can get an increased loan amount compared to standard home loans.

Are green home loans available in Australia?

Yes, there are a few banks and lenders that are offering green home loans. With an aim for a greener Australia, the Clean Energy Finance Corporation (CEFC) is investing up to $60 million in green home loans.

According to the Australian Sustainable Built Environment Council Figures, the property sector accounts for around 23% of Australia’s greenhouse emissions.

Half of these emissions come from residential buildings:

  • Heating, ventilation and air conditioning account for 40% of emissions.
  • Appliances account for 25% of emissions.
  • Hot water systems account for 23% of emissions.

With the introduction of green home loans, the CEFC hopes to encourage the construction and purchase of energy-efficient homes to reduce household emissions.

Below are Lenders who currently have ‘GREEN HOME LOAN OFFERS’ – Click on the Lenders’ logo below for more information.