Commonwealth Bank has rolled out a new offer for Australian borrowers who are trying to make their homes meet sustainability and energy efficient criteria.

The bank announced the launch of the Green Home Offer, which provides a low standard variable rate of 1.99% p.a. (2.45% p.a. comparison rate) for owner-occupiers making principal and interest repayments for a loan with a 20% deposit.

To be eligible for the Green Home Offer, borrowers need to meet either of the two options:

  • The home is certified Green Building Council of Australia (GBCA) Green Star Home or;
  • The home meets all of the following criteria:
    • Nationwide House Energy Rating Scheme (NatHERS) = 7 stars or greater
    • Electrified through installation of a heat pump hot water system and no gas
    • Solar PV equivalent to the below:
      • Up to 150m2 = 5.5kWe
      • 150 - 250m2 = 7.5kWe
      • 250m2+ = 10kWe

CommBank executive general manager for home buying Dr Michael Baumann said this offer is to reward new and existing borrowers who are taking steps to reduce their environment footprint.  

“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,” he said.

The new green offer is also part of CommBank and GBCA’s efforts to raise awareness about the Green Star Home standard, which is a new rating for volume homebuilders that seeks to create homes that focus on three 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 one in four home loans with CommBank, we have a responsibility to provide customers with accessible solutions that reduce their environmental footprint,” Dr Baumann said.

CommBank also offers a 10-year fixed rate under the CommBank Green Loan to finance the installation of eligible renewables.

Photo by @wmmead on Unsplash