NAB is rewarding its environmentally conscious home loan customers with discounts on mortgage rates and lenders mortgage insurance (LMI).

Borrowers who do not have the typical 20% deposit requirement can be eligible to get the following:

  • A lower base variable lending rate with a discount of up to 100bps on their home loan.
  • A 5% discount on the cost of LMI through NAB’s insurance partner, QBE.

To be eligible, borrower must either be purchasing new or existing homes or refinancing their current mortgage to NAB.

The property that the loan is against must have at least a NatHERS 7-star rating or a Green Building Council of Australia Green Star rating.

NAB executive for homeownership Andy Kerr said NAB aims to help address the cost-of-living pressures and assist customers in managing their personal climate impact.

“These days, people building or buying a new home are prioritising sustainable features and energy efficient designs and we also know that homes with these features help homeowners reduce their living costs which is absolutely critical right now,” he said.

A recent study from REA Group’s PropTrack showed that buyers place high importance on energy efficiency.

Meanwhile, PRD Research found that several of renewable energy projects across Australia over the past few years have a significant impact not just on property values but on the overall economic conditions of a certain market.

Mr Kerr said NAB has been active in financing renewable energy projects and this recent move is in an effort to extend the support to home loan customers.

“With Australian homes contributing more than 15% to Australia’s total emissions, this is a small but important move in the right direction,” he said.

“We are making it easier for customers to reduce energy bills and home loan repayments with the choices they make on the type of home that they buy.”

“This will also provide first home buyers with additional support to enter the housing market by reducing the cost of lenders mortgage insurance.”

QBE Australia Pacific general manager for LMI Pat Priest said the discount is also available for green home loans under Bank Australia.

“We’re pleased to be working with our exclusive partners to encourage customers to buy or build a green home or renovate their current home into a green home. We know that making properties sustainable is not only good for the environment, but also adds value to homes, so we’re proud to be enabling new and existing homeowners to look after both their present, and their future,” she said.

Ms Priest said QBE will channel 100% of the LMI premiums collected under the benefit into investments that have social or environmental benefits through QBE’s Premiums 4 Good initiative.

“By directing premiums into social and environmental impact investments, we can make a difference to the communities and environment we live and work in and help achieve our purpose of enabling a more resilient future,” she said.