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Only 1/5 borrowers would approach brokers for green loans

A survey has revealed that borrowers are not turning to brokers when seeking a green home loan and are opting for a DIY approach.

Gateway Bank’s second annual research survey conducted by Wave Research indicated that only one out of five respondents would consider approaching a broker to secure a green home loan, with 28.4 per cent stating they would shop around themselves and approach a provider directly.

The survey collected responses from 1,000 quantitative interviews nationally and 20 qualitative interviews across Sydney and Melbourne.

The findings also revealed that around 16 per cent of borrowers would go directly to their current lender for green home loan inquiries and 32 per cent said they were not sure how to source one.

However, 41 per cent of respondents stated they knew about green home loans in the marketplace, which is up 6 per cent on the previous year.

Notably, this data is somewhat contrary to the national trend. It was announced in November 2022 that brokers now facilitate 71.7 per cent of mortgages nationwide.

According to the non-major bank, both the environmental and economic climates are driving awareness of green home loans.

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Furthermore, cost-of-living pressures have contributed to the appetite for home features that help save borrowers money, while making their homes more sustainable.

The survey further indicated that nearly eight out of 10 respondents said that rising energy costs would be a “key driver” for them to install at least one feature (such as solar panels) to qualify for a green home loan. Over half of respondents (55 per cent) identified battery storage as another feature they’d willingly install.

Chief executive of Gateway Bank, Lexi Airey, stated it was unexpected to learn that consumers seeking out green home loans appear to be “bucking the national trend of using a mortgage broker as the primary method of sourcing one”.

“With four out of five respondents saying at this point that they wouldn’t approach a broker to source a Green Home Loan, this is undoubtedly a huge opportunity for mortgage brokers to include Green Home Loans in their portfolio/offer and capture this market,” Ms Airey said.

“When the 2022 changes to the National Construction Code (NCC) come into effect in May 2023, virtually all new-build homes will be built to a seven-star NatHERS rating, which automatically qualifies them for a Gateway Bank Green Home Loan.”

[RELATED: Brokers now facilitate 71.7% of mortgages]

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