Owners of sustainably designed and constructed homes will be able to access cheaper home loans following the introduction of a special new offer by a major bank.

In its latest announcement, the Commonwealth Bank says that customers that customers who undertake its Green Home Offer will have a standard variable rate of 1.99 percent per annum.

This is below the 2.45 percent comparison rate.

The loan will be offers to owner occupiers who make principle and interest payments who have a Wealth Package and at least a 20 percent deposit.

The offer will also be available to other borrowers on an interest rates on application basis.

To be eligible, borrowers will need to meet either once of two criteria:

  • The home is certified as a Green Star Home by the Green Building Council of Australia; or
  • The home is rated to 7 stars or greater under the Nationwide House Energy Rating Scheme, has no gas and is electrified through installation of a heat pump hot water system and has solar PV of a minimum size as specified in the criteria.

The latest move represents a partnership between the bank and the Green Building Council of Australia which aims at raising awareness of GBCA’s new Green Star Home standard.

Under this rating – which is aimed at the volume home building industry.

The standard 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.

CommBank’s Executive General Manager of Home Buying, Dr Michael Baumann said the bank wants to reward new and existing customers who are taking actionable steps to reduce their environmental footprint by investing in homes that are efficient, comfortable and healthier for them and the environment.

“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.

“We know homes that are well built and energy efficient are good for the environment whilst significantly reducing living costs and improving the wellbeing of homeowners.”