- Eligible borrowers will receive a discounted variable home loan rate
- The property needs to have at least a NatHERS 7-star rating or a Green Building Council of Australia Green Star rating
- Over 15% of Australian emissions comes from residential properties
One of the Big Four banks has today announced for launch of lower variable rates for certain home customers who have energy-efficient homes.
The NAB loan allows owner-occupiers paying principal and interest repayments to be eligible for an lower base variable interest rate of 4.49% per annum, if the property meets the energy efficiency criteria. This represents an additional 1% discount where the loan-to-value ratio is greater than 80%.
The property itself needs to have at least a NatHERS 7-star rating or a Green Building Council of Australia Green Star rating.
For those paying over 80% and thus requiring lenders’ mortgage insurance (LMI), buyers can access a 5% rate reduction on the cost of the insurance via the bank’s insurance partner QBE.
NAB said all premiums collected will go towards the QBE Premiums4Good initiative, which directs into investments that have a positive social and environmental impact.
The offer is available to customers purchasing new or existing homes, and those refinancing.
Keeping costs low, while benefitting the environment, says NAB
Andy Kerr, NAB Executive Home Ownership, said the move has been taken by the bank as a way of addressing cost of living pressures through energy efficiently while simultaneously assisting customers in managing their personal climate impact.
“These days, people building or buying a new home are prioritising sustainable features and energy efficient designs. We also know that homes with these features help homeowners reduce their living costs which is absolutely critical right now,” Mr Kerr said.
“While NAB has been active in financing renewable energy projects, it’s great this focus has now reached our home loan customers.
“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.
Andy Kerr, NAB
“Making buildings more sustainable is essential to addressing climate change,” he said, with a Department of Climate Change, Energy, the Environment and Water report noting that Australian homes contribute more than 15% of Australia’s total emissions.
“This will also provide first home buyers with additional support to enter the housing market by reducing the cost of lenders mortgage insurance,” concluded Mr Kerr.
