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CBA offers lower interest rate for green homes


With 1 in 4 home loans at CBA, the bank has "a responsibility" to support customers in reducing their environmental footprint.

We all know that the cost of, well, pretty much everything, is rising. After the inflation rate was announced at 5.1% this week, economists are predicting that the Reserve Bank of Australia (RBA) is also about to increase the cash rate. This means that if you have a mortgage or you're about to get one, that's about to get more expensive too.

Environmentally conscientious homeowners are in luck. Commonwealth Bank has announced its Green Home Offer. If you fit the right criteria, you could be paying as little as 1.99% (2.45% comparison rate).

The first thing to note is that this is different to CommBank's similarly named Green Loan. The Green Loan offers between $5,000 and $20,000 to finance the installation of eligible renewables on homes.

The Green Offer is a reward for new and existing homeowners who are taking "actionable steps to reduce their environmental footprint" through investing in efficient homes, said Dr Michael Baumann, CommBank executive general manager of home buying.

"We expect all residential homes to be built to these standards over the coming years as we move towards a net zero future and by introducing the new Green Home Offer, we want to encourage customers to take steps now to protect the environment and their home," Baumann said. "We know homes that are well-built and energy-efficient are good for the environment while significantly reducing living costs and improving the wellbeing of homeowners."

Is your home eligible for the Green Home Offer?

There are 2 ways to be eligible for the home offer, including your home being certified as a Green Building Council of Australia (GBCA) Green Star Home.

The standard is a new rating for volume homebuilders that seek to create homes that focus on 3 categories:

  • Climate-positive: Fully electric, draught sealed, energy-efficient and powered by renewables.
  • Healthy: Ventilated, insulated, with minimal toxins in carpets or paint.
  • Resilient: Water-efficient and climate change-ready.

With 1 in 4 of Australian home loans held at CommBank, Baumann said there is a responsibility to provide customers with accessible solutions that reduce their environmental footprint.

To take advantage of the Green Home Offer, your home will need to meet specific criteria.

Option 1: Your home is a certified Green Building Council of Australia (GBCA) Green Star Home.

Option 2: Your home meets all of the following criteria:

    1. Nationwide House Energy Rating Scheme (NatHERS): 7 stars or greater.
    2. Electrified through installation of a heat pump hot water system and no gas.
    3. Solar PV equivalent to the below:

Minimum requirement for solar size relative to size of the house:

    • Up to 150m2: 5.5kWe.
    • 150–250m2: 7.5kWe.
    • 250m2+: 10kWe.

The Green Home offer is available to new and existing owner-occupiers making principal and interest repayments with a Wealth Package and at least a 20% deposit. It is also available to other eligible borrowers, but interest rates may vary and are available upon application.

For more information, visit CommBank.

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