Better Home Loans Anyone?
Residential energy efficiency can give homeowner's some really incredible outcomes.
Firstly, it can provide more cost-effective builds (heating and cooling strategies, window sizes and placements etc) and running costs with lower or no energy bills.
Secondly, with greater energy efficiency comes with it a healthier and more comfortable internal living environment.
And lastly, it makes financial sense because banks are starting to offer GREEN HOME LOANS…
Imagine a bank with tonnes of stakeholders and a growing concern around the ESG-rating of their loan books…
See for yourself below about how this is becoming a much more important consideration for the financial sector of Australia’s economy…
Hmm, well, banks now have an incentive to incentivise you and the housing market at large to build more energy efficient homes.
More energy efficient homes on their loan books = a better stock valuation for their shareholders.
It is a win-win because you get a more energy efficient home that costs less or nothing to run while becoming eligible for a much better home loan.
Australia is currently transitioning into increased energy efficiency requirements. With the industry moving from a 6-star compliance requirement to 7-star.
However, 83% of Australian homes do not meet a 7-star rating, with only 21% of new homes built in 2023 achieving a rating of 7-stars or higher. (Source: Top Green Home Loans in Australia)
This is incredible to think about when you consider this transition we are currently within.
One thing that can alleviate this transition by adding both a financial incentive and an increase to the economics of achieving 7-stars in the first place are these 'green home loans' that can be taken advantage of.
But what do you need to do to achieve eligibility?
Well, this will depend firstly on who you choose to go with.
There are various banks and non-banks that offer a 'green home loan' so make sure to check with potential lenders.
As an example, though, check out Commonwealth's 'Green Home Offer'.
To meet eligibility, the project will need to:
Have a rating of 7-stars or greater
Install a Heat pump hot water system
Be all-electric, meaning no gas connected to the home
& have a Solar system equivalent to:
Up to 150sqm: 5.5 kW
150-250sqm: 7.5 kW
250-350sqm: 10 kW
Not only will these requirements provide a home that is more affordable to run, but it also becomes much healthier for you to live in, with population studies showing that living in a home with a gas stove can increase a child's risk of asthma by 42%.
So, when you are having that initial meeting with a prospective client, developer or homeowner, ask them:
Have you considered the energy efficiency of this home or development?
Did you know, that with higher energy efficiency levels the project can become eligible for better home loans?
Prompting your clients EARLY and having these conversations lead to exceptional outcomes for a project.
From better bottom lines to happy, healthy residents!
Ready to take the next step in making your home or project as energy efficient as possible?
The way forward starts here…
1. Fill out our contact us form for a tailored consultation: Contact Us
2. Prefer to chat? Drop us an email at ben@arkata.au or call directly on 0431 922 265.
Let’s collaborate to enhance your project with the benefits of energy efficiency!