ABC Announces New Low-Rate Green Home Loan
The big bank followed the recent trend set by lenders outside the big four, unveiling a new product for sustainable residential properties.
The Commonwealth Bank of Australia (CBA) has focused on encouraging sustainable property investment, with the major bank announcing that it will offer a low-rate green property loan to eligible customers.
According to the CBA, the loan, named CommBank Green Home Offer, offers a standard variable rate of 1.99% per annum (comparator rate of 2.45% per annum) for homeowner loans with repayment of principal and interest. .
Additionally, the loan must also include a wealth package as well as a deposit of at least 20%.
The ABC also said this offer will only be available to properties that meet the eligibility criteria, including if the property is a Green Star home certified by the Green Building Council of Australia (GBCA), or aligns with specific criteria that include the use of solar panels and a lack of gas and hot water heating.
CBA’s Executive Managing Director of Home Buying, Dr. Michael Baumann, said, “We want to reward new and existing customers who take concrete steps to reduce their environmental footprint by investing in homes that are efficient, comfortable and more healthy for them and for the environment.
“We expect all residential homes to be built to these standards over the next few years as we move towards a net zero future and by introducing the new Green Home offering we want to encourage customers to take action as soon as possible. now to protect the environment and their home.
“We know that well-built, energy-efficient homes are good for the environment while dramatically reducing the cost of living and improving homeowner well-being.”
The ABC’s confirmation of its green home loan comes on the heels of previous lenders announcing their eco-focused products.
Last year non-bank Firstmac and mutual lender Gateway Bank both confirmed they would launch discounted home loans for select sustainable properties.
It also lags behind some environmentally-focused initiatives launched by the big bank in 2021, including a loan for renewable technologies and funding for what would be the “first” green property to be built in Australia.
Additionally, this green pivot also follows reports of a shift in consumer attitudes towards investing in sustainable properties.
In January, the president of the Real Estate Institute of Australia (REIA), Hayden Groves, said: “The demand for sustainable homes or homes with sustainable features will increase, as will customer expectations that we, as real estate agencies, let’s run sustainable businesses.
“This can range from preferences for resorts with electric car charging stations to homes built with green materials or powered by renewable energy.”
[Related: Sustainable properties high on buyers’ minds]
Sam Nichols is a journalist at The Adviser and Mortgage Business. His reporting has appeared in a range of outlets including ABC News, SBS’ The Feed and VICE.