CBA said the loan would offer variable rates as low as 1.99 per cent for owner-occupiers who had a deposit of at least 20 per cent,and who took out a mortgage package. To qualify,the customer’s home would need to meet detailed criteria that included having a minimum amount of solar panels,and having electric cooking and heating instead of gas.
Dr Michael Baumann,the bank’s executive general manager of home buying,said the product would be open to people building new homes and those renovating,noting that many younger customers raised sustainability issues.
“We see a lot of customers,especially when we are talking to more millennial customers or Gen Zs who are really pushing us,but also some of their parents… to think about how they can build and work sustainably,” Baumann said on Wednesday.
He acknowledged the number of homes that would be eligible for the rate would initially be “relatively limited.” However,he said the bank believed there would be strong growth in green home construction,and it wanted to provide financing to help customers improve their environmental footprint.
“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,” Baumann said.
Sally Tindall,research director at comparison website RateCity,said it was the lowest variable rate advertised by CBA,and predicted other big lenders would seek to move into this part of the market.