loans.com.au has unveiled an Australian-first Solar Home Loan that will provide interest-rate discounts for five years to borrowers who will be installing a qualifying solar power system.
The home loan offers a 0.6% interest rate discount for five years to borrowers installing a solar power system large enough to make a real impact on the power they take from the grid.
The 0.6% discount on an average home loan of $450,000 amounts to $13,500 in savings over five years — this is more than the upfront cost of the largest commonly available 10kw solar system.
loans.com.au’s Solar Home Loan currently starts at an interest rate of 4.63% p.a. for owner-occupiers and 4.89% p.a. for investors.
Borrowers with loan-to-value ratio of up to 90% can access the home loan.
The offer is available both to new customers and existing loans.com.au customers who install a solar energy system.
loans.com.au managing director Marie Mortimer said this new offer is perfectly timed to assist homeowners who are feeling the impacts of higher interest rates, surging inflation, and the unprecedented increase in power bills.
“Our Solar Home Loan will help people cut their mortgage repayments and their energy bills, while also fighting Climate Change by moving them to clean, renewable solar power,” she said.
Over the second quarter of 2022, electricity prices have increased by as much as $502 annually on average in some states.
According to Treasury forecasts in the latest Federal Budget, retail power prices will increase by an average of 20% in late 2022, with a further 20% increase in 2023 to 2024.
Based on estimates, a large solar power system can reduce energy bills by as much as 50%.
“We know people are mindful of their budgets right now due to the rising cost of living and especially soaring power costs, so we’ve launched a loan which really helps families during what is becoming a very difficult period economically,” Ms Mortimer said.
Photo by Gustavo Fring from Pexels.
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