Ways To Fund A Renovation With A Bank Australia Green Construction Loan
With all the talk and emphasis placed on the importance of conscious design and building homes which tread lightly on our planet, it’s great to see some forward thinking financial institutions are creating products to help homeowners bridge the gap between concept and reality.
Enter, the ‘Green Construction Loan’ from Bank Australia.
What is a Green Construction Loan?
Basically, a Green Loan rewards mortgage borrowers for building or renovating in an environmentally friendly way.
Buildings account for 23% of Australia's total emissions, and about half of that is from homes. Making homes clean and green is essential to addressing the climate crisis - Bank Australia.
Bank Australia's Clean Energy Home Loan is an excellent example of how you can access funds to renovate your home and be rewarded for taking a greener approach. Their Clean Energy Home Loan is about rewarding people who do the right thing for our planet.
There are three key ways you can access this loan which are largely dependent on the vision for your future home.
The Eco Loan
The Eco loan is for newer homes built after January 1 2020, that also achieve a 7+ star NatHERS rating. This rating system is applicable nationwide and provides an early insight into the overall energy consumption of the build.
For homes still under construction, the projected energy rating information and plans are considered when judging applicants.
If deemed eligible, this loan can get you a 0.20% p.a. discount on your home loan, meaning it can help you free up funds to invest in a more sustainable home, renovate your existing property to reduce its energy consumption further or build something new altogether.
The Eco Upgrade
Are you upgrading your home's efficiency? The Eco Upgrade was created to celebrate planet-conscious people!
You might be eligible for this funding without knowing it if you have completed three or more energy-efficient upgrades or improved your overall residential efficiency by one or more stars.
These energy-efficient upgrades can include solar panel installation, hot water heat pumps, window double glazing, underfloor installation or even an electric vehicle charging point.
If you are deemed eligible, then you too, could be rewarded with a 0.20p.a. discount on your home loan.
The Eco Plus.
The Eco Plus is aimed at those investing even further into their sustainable practices by holding a NatHERS rating of 7.5 stars or higher with solar panels or achieving a Green Star Homes certification.
This loan type can be used for either existing homes built after January 1 2020, or applied to constructions as long as the plans meet the eligibility requirements.
Unlike the other options available, this loan offers a potential 0.30%p.a. saving on your green home loan.
These are just three ways you can be rewarded for your sustainable efforts with Bank of Australia, and as green practices become more and more commonplace, we can only expect these benefits to grow.
If you are embarking on your sustainable renovation journey, we would love to hear from you. Have questions or want more info? Book a call and say hello.