The Australian government-owned Clean Energy Finance Corporation (CEFC) is investing $125 million to support CommBank’s Green Home Offer to help reduce emissions and improve the energy efficiency of new and renovated homes.
CommBank’s Green Home Offer, initially launched in May 2022, will give customers a low standard variable home loan rate if the home meets qualifying sustainability and energy efficiency requirements.
Since its launch, many banks and non-bank lenders have followed suit, with the likes of NAB offering up to 1.00% APR discounts on home loans, loans.com.au offering discounts on solar home loans and Suncorp Bank offering variable rate discounts on eco-friendly home improvements.
Michael Baumann, CommBank’s Executive General Manager of Homeownership, said the bank is committed to rewarding new and existing customers who are taking actionable steps to reduce their environmental footprint.
“We know that building well-built and energy-efficient homes is good for the environment, while also significantly reducing the cost of living and improving the well-being of homeowners,” said Dr. Baumann.
“This upfront investment has proven to be attractive, especially with the current increase in energy costs, which can impact the cost of living.”
In the past week, electricity supplier Energy Australia increased energy costs by 14.1 percent or an average of $301 per year for residential households and 12.5 percent or an average of $641 per year for small and medium-sized businesses.
Richard Lovell, Head of Debt Markets at CEFC, noted that the further development of the green housing loan market in Australia is indicative of growing consumer demand for energy efficient homes.
“Expanding the Australian banking industry’s green housing loan program, while continuing to strengthen sustainability requirements, offers customers a viable solution to reduce their carbon footprint,” Mr. Lovell said.
CommBank’s Green Home Offer is available to customers who build or renovate to meet the requirements of the Green Building Council of Australia (GBCA) Green Star home standard.
In addition, customers with qualifying homes that meet the standards set by CommBank in conjunction with the GBCA and CEFC, but are not certified to the Green Star standard, are also eligible.
