Bank Australia backs all-electric sustainable homes with HEUF
Helping households make informed choices when improving sustainability
Bank Australia has joined the Household Energy Upgrades Fund (HEUF) with a product that is aimed at incentivising customers to create more sustainable all-electric homes.
$100 million
loans
All-electric
homes
Free
consumer tool
We know purchasing a sustainable home or making green upgrades isn’t always an easy process, and that’s why we’re working with the CEFC to offer attractive loan products and support our customers to decarbonise their homes.Damien WalshManaging Director, Bank Australia
Our investment
The CEFC, through the Household Energy Upgrades Fund (HEUF), is committing $50 million to Bank Australia to support up to $100 million in loans for renovations that make existing homes more sustainable.
Through its HEUF-backed product, Bank Australia will deliver a reduced variable rate of 5.38 per cent for the first five years of a loan.
Bank Australia Clean Energy Home Loans were created to encourage customers to buy or create more sustainable homes. The loan criteria require homes to be all-electric. To make it easier for customers, the bank is providing free access to the BOOM! Power Electrify Your Home tool that assesses home energy use, recommends electrification upgrades and connects customers with suppliers.
Learn more about the HEUF and other HEUF products.
OUR IMPACT
Australia’s existing 11 million homes are responsible for more than 10 per cent of total emissions and more than 25 per cent of electricity consumption, according to Climateworks Centre research.
The Australian Government has allocated $1 billion to the CEFC to create the HEUF and fast-track energy improvements in existing housing by providing discounted consumer finance through a broad range of co-financiers.
Building on a successful track record
The CEFC has worked with Bank Australia since 2020 to finance green upgrades and green home loans worth more than $250 million via Bank Australia Clean Energy Home Loan products.
These products have helped deliver significant improvements in home energy efficiency including the achievement of an average NatHERS rating of 7.9 stars for new builds, compared to the national average of 6.4 stars.
The Bank Australia loans backed through the HEUF build on the CEFC working relationship with Bank Australia and further develop the green home loan market through innovative loan products catering for consumer demand.
We are proud of the work we have done with Bank Australia to develop the green home loan market and create innovative loan products to cater for consumer demand. This commitment via the HEUF is a great opportunity to reach more Bank Australia customers and support the electrification journeys of their existing homes.Ian LearmonthCEO, CEFC
Calculated savings
On a loan balance of $500,000 on a comparable home loan, the discounted rate can reduce monthly repayments by $254 for five years with potential savings of $24,500 in interest payments over a 30-year loan
That calculation is based on published variable interest rates effective 30 October 2024, with potential interest savings calculated as a comparison of Clean Energy Home Loan Renovate and Bank Australia Offset Home Loan with a <80 per cent loan-to-value ratio on a $500,000 owner occupied loan with a 30-year term.
The CEFC does not provide loans directly to consumers. Visit the Bank Australia website for more information.
