ABC Announces Green Loan – Mortgages
The big bank has launched a pilot green loan 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 clients with a CommBank Qualifying Home Loan or Investment Home Loan.
The Green Loan will begin with a pilot program in February, with nationwide roll-out slated for May 2021.
According to the ABC, 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 home loans.
The green loan would allow eligible customers to borrow up to $ 20,000 in renewable energy at a fixed rate of 0.99% per annum. 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 on the loan.
Commenting on the program, Angus Sullivan, CBA Group Director, said: “As part of our commitment to a responsible global transition to net zero emissions by 2050, we are helping our customers access renewable energy through to sustainable housing solutions.
“For most customers, they will see their energy bills drop by more than $ 500 per year if they switch to solar, which will offset the full loan repayments over the long term.
Eligible small-scale renewables must be installed by an accredited, certified and trained installer to ensure systems meet industry best practice standards and all relevant Australian standards (as accredited by the Clean Energy Council ), the CBA said.
“We have a responsibility to meet the needs of our customers and the community today while operating in a sustainable manner for future generations, and our new CommBank Green Loan will make financing more accessible,” said Mr. Sullivan.
“I am extremely excited that this new offering 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 the launch. “
Clean Energy Council chief executive Kane Thornton also spoke about the program, saying: “Over 2.7 million Australians have installed solar panels in their homes, and it’s a great way to lower your energy bills. electricity and reduce your household’s carbon footprint.
“By choosing a Clean Energy Council approved solar energy retailer, you will be working with someone who has signed the Solar Retailers 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 back program for “energy efficient” mortgage clients of the bank 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 the Gold Coast airport. Of the $ 150 million, $ 75 million was a sustainability loan, which reduced QAL’s margin if the airport met its “carbon intensity” reduction targets.
Another lender entering the renewable energy lending business 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 turned out to be up 19% from the previous comparative period.
[Related: CBA reports strong lending growth]
Malavika Santhebennur is the Mortgage Securities Editor at Momentum Media.
Prior to joining the team in 2019, Malavika held positions at Money Management and Benchmark Media. She has been writing about financial services for six years.