Bendigo Bank Grabs at Green Market

Building or buying a home doesn't have to cost the earth. If you're committed to finding environmentally friendly solutions, there are several measures you can take to promote energy and water efficiency in your home.

As the green consciousness of Australians is rising, lenders are stepping in to offer custom designed financial products to the green market.

One example is the Bendigo Bank Green Home Loan.

This home loan offers a 0.50% per annum reduction on their residential variable interest rate as an incentive for buying or building an energy and water efficient home. According to the Bendigo Bank, a Green Home Loan could save hundreds dollars a year on your home loan repayments.

While this reduced interest rate means you pay less on your repayments, it's important to remember that this is only relative to what you would be paying on a different type of Bendigo Bank loan. Other lenders may offer you lower repayments while you can still build or buy an environmentally friendly home.

An energy efficient or "green" home design can contain features such a solar hot water system, home insulation, water storage tanks, double glazing or even a means of using a renewable energy electricity system. In addition to the benefits to the environment, a financial advantage to these types of green solutions is that you can also reduce the amount you pay for your utility bills through the installation of energy and water-saving fittings.

Only a very small number of lenders currently offer this type of green loan product, so the costs have not yet become extremely competitive. To qualify for the Green Home Loan, borrowers need to build or buy a home that ranks at the top of the various state and national rating schemes for the evaluation of green homes. To be eligible for this loan, a valuation fee applies, which starts at a minimum of $205. Other statutory fees and charges apply.

With a Green Home Loan from Bendigo Bank, you can borrow up to 97% on the value of property, but borrowing this much would attract significant extra costs in the form of lenders mortgage insurance.

The Green Home Loan offers the flexibility of weekly, fortnightly or monthly payments, with additional payments allowed. A redraw facility is available but attracts a $25 fee per transaction.

It's important to explore all of your home loan options and avoid being swept along in the feel good marketing of green home loans.

Remember that the reduced rate offered may only bring the interest down to something that another non-bank lender is offering. Also, remember that you can make environmentally friendly modifications to your home using a number of home loan products, and still help the environment while saving money on your utility bills.

Bookmark/Search this post with:

| | | | | | | | | |