CommBank to offer cheaper home loans for ‘green’ borrowers
The Commonwealth Bank will offer homebuyers a reduced mortgage rate if their house meets a raft of green standards, including no gas.
The bank’s new green home loan for owner occupiers will be at 1.99 per cent, well below its standard variable of 2.45 per cent.
But there are host of conditions. The homeowners have to have a 20 per cent deposit, make principal and interest payments on the mortgage and have a wealth package.
The “green” standards would include having a home certified by Green Building Australia, or Green Star Home. Alternatively, it also needs to have a rating of seven stars or better on the Nationwide House Rating Scheme. It must be electrified through the installation of a heat pump hot water system and no gas.
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It must also have solar power meeting certain guidelines.
The bank’s executive general manager of home buying Dr Michael Baumann said CBA wanted to reward new and existing customers who were taking actionable steps to reduce their environmental footprint by investing in homes that were efficient and good for the environment as well as reducing their living costs.
