The 2022-2025 Housing Outlook commissioned by QBE Lenders Mortgage Insurance has revealed that consumers are prioritising and being rewarded for making greener housing decisions.
Effective insulation and better lighting are among the most popular installed energy saving initiatives, while solar panels, lighter-coloured roofs, double glazed windows, and solar hot water systems also play a major role.
QBE LMI General Manager Pat Priest said increasing home energy is one of the best ways for consumers to future-proof their biggest assets.
“An energy efficient home uses 66% less electricity, 51% less water and produces 62% fewer greenhouse gas emissions,” Ms Priest said.
“Just by installing a 5kW rooftop solar system, the average Australian household could save $909 per year on their electricity bills."
Homeowners are also opting for efficient white goods and appliances such as dishwashers and washing machines.
Besides reducing usage costs, solar panels can also give homeowners feed-in tariff credits giving households savings on their energy bill whenever they contribute power back to the grid.
Electricity prices are tipped to grow a further 35% in 2023, with the Federal Treasurer warning this factor will be the most problematic aspect of inflation over the next six or nine months.
How do green home loans come into the equation?
If a home is energy efficient and sustainable, a lender may reward the borrower with a green home loan that offers discounted or competitive interest rates.
However, this is only possible if the home qualifies for a certain star-level or certification under the Nationwide House Energy Rating Scheme (NatHERS).
“Making it more affordable to own a green home is a key enabler for consumers to switch over to energy efficient choices,” Ms Priest said.
“This is why QBE LMI has just launched a 5% rate reduction for LMI to benefit customers seeking to buy, build or renovate into a green home.
“Customers who secure a green mortgage through our current participating exclusive partners NAB or Bank Australia may be eligible to benefit from the rate reduction, helping to get them into a green home sooner.”
See Also: NAB launches home loan discounts for energy efficient homes
The easy ‘green’ changes you can make to your home
According to the QBE report, there are a number of changes you can make to green proof our home:
- Purchase updated white goods and appliances: Look for models that have a high energy star label.
- Install solar panels: Extremely sought-after by homebuyers as the savings on electric costs can be high.
- Convert to LED light bulbs: The report notes that LED bulbs use 75% less energy than traditional halogen bulbs and also last five to 10 times longer.
- Paint your roof a lighter colour: A lighter roof will keep your home cooler as it reflects the sunlight and heat so you won’t need to use your aircon constantly.
- Double glaze your windows: Double glazed windows can reduce the amount of heat transmitted through a window, thus removing the need for constant temperature control e.g. turning your air conditioner on to cool the house down.
- Redo the insulation: The report found effectively insulating the ceiling, walls, and floors of a typical home saves 45-55% on heating and cooling.
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Building or buying an energy-efficient home? This table shows some of the lowest interest rates in the market for 'green' home loans.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.99% p.a. | 6.51% p.a. | $2,995 | Principal & Interest | Variable | $0 | $530 | 90% |
| Disclosure | |||||||||||
5.84% p.a. | 5.89% p.a. | $2,947 | Principal & Interest | Variable | $null | $null | 60% | |||||||||||||
5.82% p.a. | 5.82% p.a. | $2,940 | Principal & Interest | Variable | $0 | $0 | 80% | |||||||||||||
5.84% p.a. | 5.89% p.a. | $2,947 | Principal & Interest | Variable | $0 | $500 | 60% | |||||||||||||
5.88% p.a. | 6.38% p.a. | $2,959 | Principal & Interest | Variable | $350 | $0 | 90% | |||||||||||||
5.95% p.a. | 6.23% p.a. | $2,982 | Principal & Interest | Variable | $299 | $0 | 80% | |||||||||||||
5.34% p.a. | 6.27% p.a. | $2,789 | Principal & Interest | Fixed | $350 | $0 | 90% | |||||||||||||
6.14% p.a. | 6.85% p.a. | $3,043 | Principal & Interest | Variable | $0 | $720 | 90% | |||||||||||||
7.64% p.a. | – | $3,544 | Principal & Interest | Variable | $25 | $0 | 70% | |||||||||||||
6.19% p.a. | 6.58% p.a. | $3,059 | Principal & Interest | Variable | $0 | $530 | 90% | 90% LVR |
| Disclosure |
Image by Vivint Solar Via Pexels
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