How your House’s Energy Rating Can Impact your Interest Rate Repayments

Have you heard the term: 'Green Home Loans'?

Green home loans are an initiative to encourage homeowners to build, renovate, and buy homes that are more energy efficient and sustainable.

This effectively means that banks are rewarding borrowers with cheaper interest rates for having energy-efficient houses, as the property sector accounts for 23% of Australia's greenhouse emissions.

Inovayt Finance, states: "Our prediction is that in the future, most Banks will offer reduced rates for energy-efficient houses they mortgage to reduce their overall carbon footprint."

"To qualify for a green home loan in today's market, your property should have a minimum 7.0-star Nathers rating."

The Nationwide House Energy Rating Scheme (NATHERS) is administered by the Australian Government on behalf of all states and territories to improve and implement regulations on home energy performance.

This scheme also will help ease the cost of living, as the utilisation of natural and renewable resources will be administered, thus energy bills will be cheaper for Australian households.

To be eligible for the 'Green Home Loan', take these following initiatives:

· Rooftop solar panels

· Battery storage systems

· Solar hot water

· Double glazing

· Rainwater tanks

· Grey water treatment system

· Insulation

· 5+ star gas or electric heating

· Non-toxic building material

"So, whilst Green Home Loans are relatively new, our advice is to start looking at ways to make your home more energy efficient, in the long run, it would save you money on your energy bills and mortgage." (Inovayt Finance)

Have more questions about your investment property? Want to ensure you are maximising your returns? Why not see the difference a dedicated team of property managers makes? For a free copy of our Property Investors Guide or an obligation-free chat, email our Director, Casey Healey, on casey@c21newcastle.com.au or phone 02 4928 7400 today.

Source: Inovayt Finance