Major bank NAB has announced it will offer a discount of up to 1.00% (one percentage point) on home loan interest rates for eligible energy efficient homes.
In addition, insurance giant QBE announced 5% discounts on lenders mortgage insurance (LMI) policies for the same properties.
QBE's offer is available across NAB and Bank Australia home loans.
For NAB, the one percentage point discount applies on the base variable-rate home loan.
It is available for properties that meet the minimum criteria for a 7-star NatHERs rating - the nationwide house-energy rating scheme - or a Green Building Council of Australia green star rating.
NAB home ownership executive Andy Kerr said these offers will help ease cost of living pressures.
"These days, people building or buying a new home are prioritising sustainable features and energy efficient designs. We also know that homes with these features help homeowners reduce their living costs which is absolutely critical right now," Mr Kerr said.
"This will also provide first home buyers with additional support to enter the housing market by reducing the cost of lenders mortgage insurance."
QBE LMI general manager Pat Priest said this was a good incentive for borrowers to think about green homes.
"We recognise the importance of addressing climate change and facilitating a resilient future for our business and our customers," Mr Priest said.
Proceeds of these LMI premiums will also go to QBE's 'Premiums 4 Good' initiative, and will be directed into social and environmental impact investments.
Photo by Vivint Solar on Unsplash