Get home loans discounts by going green, says Firstmac

A hand holding a globe and another hand holding a jar with a tree sprouting from coins in a green background promoting green home loans

In an effort to combat the effects of climate change, Firstmac is offering discounted home loans to borrowers who are buying or building green homes with a Nationwide House Energy Rating Scheme (NatHERS) rating of 7 or higher.

Firstmac is among the biggest non-bank lenders based in Australia who’ve issued 130,000 home loans over the years and manage more than $12 billion in mortgages.

As part of their $750 million green mortgage backed securitisation, Firstmac announced that borrowers can access $230 million of discounted green home loan finances. The company received a total of $766 million in investment support from Japanese investment bank Norinchukin and the Clean Energy Finance Corporation (CEFC).

CEFC chief executive Ian Learmonth said: “Green home loans are an effective way to use our finance to benefit Australians over the long term. With this new investment we have now committed more than $580 million to cleaner, greener homes Australia wide, including more than $220 million to green home loans.

“With the average home having a life span of 50 years or more, these investments have the potential to lock in lower energy consumption over the long term, as well deliver more comfortable homes that are cheaper to run.”

What are the potential discounts for going green?

If a home is at least certified to have a 7 NatHERS rating, then the borrowers may benefit from a 0.4% finance discount for up to five years on loans up to $1.5 million. For construction loans, Firstmac will offer up to a 1.58% discount.

Firstmac’s managing director, Kim Cannon says that Firstmac offers discounted green car finance to buyers who choose low emission vehicles.

“The success of this program has led Firstmac to now develop this innovative green home loan product,” he said. “If you are environmentally conscious, then Firstmac is the logical choice for your financing needs.”

Nearly a quarter of Australians' greenhouse gas emissions came from the property sector, with about half of the emissions coming from residential buildings, said the Firstmac press release.

According to CSIRO, more than nine millions homes across Australia do not meet the 7 star NatHERS rating. In 2020, CSIRO found that only 10% of new homes built received a 7 star rating or higher.

For more information on finding the best home loan for your budget, check out Mozo’s home loan comparison tool.