ABC Announces Green Loan – Mortgage Business
The major bank has launched a green loan pilot program to enable its customers to purchase and install renewable technologies.
The Commonwealth Bank of Australia (CBA) has announced a new CommBank Green Loan for new and existing customers with a qualifying home loan or CommBank investment property loan.
The green loan will begin with a pilot program in February, with a nationwide rollout expected in May 2021.
According to the CBA, the loan would allow eligible customers to use the green loan to purchase and install eligible small-scale renewable technologies such as solar panels (and inverters, if applicable), batteries and charging stations for electric vehicles on the property used as collateral. for existing mortgages.
The green loan would allow eligible customers to borrow up to $20,000 of renewable energy at a fixed rate of 0.99% per year. It can be repaid over 10 years and has no monthly installation service or prepayment charge, but late fees would apply.
Customers eligible to participate in the pilot will receive an invitation directly from CommBank to apply for the loan. The big bank asked customers to register their interest in the loan.
Commenting on the program, CBA Group Executive Angus Sullivan said, “As part of our commitment to the responsible global transition to net zero emissions by 2050, we are helping our customers access renewable energy through sustainable housing.
“For most customers, they will see their energy bill drop by more than $500 a year if they switch to solar, which will offset the total loan repayments over the long term.”
Qualifying small-scale renewables must be installed by an accredited, certified and trained installer to ensure the systems meet industry best practice standards and all relevant Australian standards (accredited by the Clean Energy Council), said the ABC.
“We have a responsibility to meet the needs of our customers and the community today while operating sustainably for future generations, and our new CommBank Green Loan will make financing more accessible,” Sullivan said.
“I am extremely excited that this new offer will be made available to all eligible customers in May, so I encourage you to register your interest now as we will announce additional details closer to launch.”
Clean Energy Council chief executive Kane Thornton also spoke about the scheme, saying: “Over 2.7 million Australians have installed solar panels on their homes, and it’s a great way to cut your utility bills. electricity and reduce your household’s carbon footprint.
“By choosing a Clean Energy Council-approved solar retailer, you’ll be working with someone who has signed the Solar Retailer Code of Conduct and uses Clean Energy Council-accredited designers and installers.”
The green home loan followed another green mortgage program in 2019, with CBA CEO Matt Comyn announcing a $500 cash rewards program for the bank’s ‘energy efficient’ mortgage customers. who had installed solar panels in their homes.
Additionally, in 2019 the bank announced that it would provide $150 million in debt financing to Queensland Airports Ltd (QAL) for the redevelopment of Gold Coast Airport. Of the $150 million, $75 million formed a sustainability-linked loan, which provided a margin reduction for QAL if the airport met “carbon intensity” reduction targets.
Another lender getting into the renewable energy lending space is fintech lender Plenti, which secured a second $100 million renewable energy warehouse last year.
In a December quarter business update, Plenti attributed its growth to its renewable energy loans, which were up 19% from the previous comparative period.
[Related: CBA reports strong lending growth]
Malavika Santhebennur is the Mortgage Headlines Editor at Momentum Media.
Prior to joining the team in 2019, Malavika held roles at Money Management and Benchmark Media. She has been writing about financial services for six years.