Commonwealth Bank has introduced the Green Home Offer, which rewards home loan customers whose home meets certain sustainability and energy efficient criteria with access to a low standard variable rate.
The CommBank Green Home Offer is a low 1.99% p.a. standard variable rate for owner-occupiers making principal and Interest repayments with a Wealth Package and at least a 20% deposit, and for other eligible borrowers, with interest rates available on application.
“We want 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,” said Michael Baumann, CommBank’s executive general manager of home buying. “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.”
CBA customers will be eligible for the Green Home Offer if they meet the following criteria:
“This is a positive and important step from Australia’s biggest bank,” said Sally Tindall, RateCity.com.au research director. “Offering an ongoing incentive for building a green home is the right thing to do. CBA is rewarding its environmentally conscious customers with a sub-2% rate and while variable rates are set to rise, the discount will remain for the life of the loan. This is the lowest ongoing advertised variable rate we’ve ever seen from CBA.”
Tindall said, however, that borrowers are unlikely to meet the purposefully meticulous criteria.
“This product is primarily designed for new builds and renovations, and as such, the initial uptake will be limited,” she said. “However, with more Australians focused on building sustainable homes, the appetite for these loans will hopefully grow over time. The green home loan space has had a slow start in Australia, but with CBA now in the game, more lenders are likely to follow.”
Customers should speak with their CommBank lender or broker about their eligibility for the new offer and to submit an expression of interest, with applications open in May. For more information about the new Green Home Offer, visit the CommBank Sustainability Hub.
