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 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'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. There are three key ways you can access this loan:

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. If deemed eligible, this loan can get you a 0.20% p.a. discount on your home loan.

The Eco Upgrade: Are you upgrading your home's efficiency? The Eco Upgrade was created to celebrate planet-conscious people! You might be eligible if you have completed three or more energy-efficient upgrades or improved your overall residential efficiency by one or more stars. These upgrades can include solar panel installation, hot water heat pumps, window double glazing, underfloor insulation or even an electric vehicle charging point. If eligible, you could be rewarded with a 0.20% p.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. Unlike the other options, 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 Australia, and as green practices become more and more commonplace, we can only expect these benefits to grow.