According to the new survey, there is a growing interest in green home loans, but many people hold a perception that they are more expensive and difficult to qualify for.
Out of the 1,000 people surveyed, 34% said that one of the most attractive feature of a green home loan is its exclusivity - particularly among younger borrowers.
Two thirds (66%) said they would consider installing environmentally friendly features required by a green home loan if it was easy and the products were cost-effective.
Features that can be installed in a green home include solar panels, insulation and/or double glazed windows to increase the home's efficiency and, ultimately, save money on energy bills.
Gateway Bank initially launched two green home loan products in May 2021 - dropping interest rates on both by 45 basis points later that year - to be "even more competitive" in the green home loan space.
Other lenders such as Commonwealth Bank, Suncorp, homeloans.com.au, and Firstmac all launched green home loans last year.
This year, RACQ Bank joined the bandwagon and launched its own green home loan for amounts from $3,000 to $50,000.
Most banks and lenders have referenced an increased focus on environmental sustainability when announcing new green home loans.
For context, Australia had a record-year for solar panel installations in 2021 with an estimated 380,000 rooftop solar installations taking place.
Image by Jeremy Bezanger on Unsplash
Ready, Set, Buy!
Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!
With bonus Q&A sheet and Crossword!
