CBA announces new low rate, green home loan

The Commonwealth Bank of Australia (CBA) has expanded its focus towards encouraging sustainable property investment, with the major bank announcing it will be offering a lower rate green home loan for eligible customers. 

According to CBA, the loan, named the CommBank Green Home Offer, offers a standard variable rate of 1.99 per cent per annum (2.45 per cent per annum comparison rate) for owner-occupier loans with principal and interest repayments. 

Further, the loan must also include a Wealth Package alongside a deposit of at least 20 per cent. 

CBA has also expressed that this offer will only be available for properties that meet eligibility necessities, including whether the property is a certified Green Building Council of Australia (GBCA) Green Star Home, or aligns with specific criteria that include the usage of solar panels and a lacking presence of gas and hot water heating. 

CBA executive general manager of home buying Dr Michael Baumann said: “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.

“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’s confirmation of its green home loan comes in the wake of previous lenders announcing their eco-focused products. 

Last year, non-bank Firstmac and the mutual lender Gateway Bank both confirmed that they would be launching discounted home loans for certain sustainable properties. 

It also trails certain green-focused initiatives launched by the major bank over 2021, including a loan for renewable technologies and the financing of what was said to be “Australia’s first” green build-to-rent property.

Further, this green pivot also follows reports of shifting consumer attitudes towards investing in sustainable properties. 

In January, Real Estate Institute of Australia (REIA) president Hayden Groves said: “Demand for sustainable homes or homes with sustainable features will increase, as will client expectations that we as real estate agencies are running sustainable businesses. 

“This could be anything from preferences for complexes with electric car charge points right through to homes built with green materials or powered by renewable energy.”

[Related: Sustainable properties high on buyers' minds]