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A poll of 1,000 Australians conducted by The Research Department and commissioned by Gateway Bank, has explored consumer perceptions of green home loans.
The product was commonly assumed by younger people to be niche offers for those “in the know”, something that may not be available to the mass market.
Respondents were also resoundingly unclear about what they would need to do to be eligible for a green home loan.
Around half (49 per cent) said they would consider the product if the price was right, but a further 32 per cent were unsure or undecided, due to a lack of knowledge about eligibility conditions.
Two-fifths (42 per cent) said that if their broker or financial institution recommended switching to, or getting a green home loan, they would consider it, but a further 37 per cent were unsure or undecided due to a lack of knowledge around eligibility.
Two-thirds (66 per cent) of consumers said they would consider installing environmentally friendly features required by a green home loan, if they were cost-effective products that were easy to do.
A third (34 per cent) said one of the most attractive features of a green home loan would be its perceived exclusivity.
Gateway Bank launched its green home loan offering last year, enabling borrowers to access a discounted interest rate if their home met certain environmental criteria.
“Our discounted green home loans are designed to help borrowers save money on their home loan as a reward for their efforts to reduce energy consumption and minimise their impact on the environment,” Gateway Bank chief executive Lexi Airey said.
In January, the Real Estate Institute of Australia (REIA) forecast demand for sustainable homes and living would rise over 2022.