Using less energy in our homes and transitioning to sustainable energy sources is a crucial step we must take today. Australian residential dwellings need to obtain a BASIX certificate to demonstrate compliance with required sustainability standards.
NatHERS is an important component of BASIX.
More and more banks are offering clean energy home loans on residential properties to encourage the public to make this transition. Sustainable and energy-efficient housing, as well as electric vehicles, are the main targets of these lendings.
The world is trying to achieve net zero emissions to fight the effects of climate change, and you can do your part by fulfilling your residential energy needs through clean energy.
Criteria to Receive The Loan
To receive these loans, you must follow some procedures and fulfil certain criteria. Let’s take a look at it.
High NatHERS Ratings
A home’s energy rating is assessed and displayed on a certificate issued by the Nationwide House Energy Rating Scheme or NatHERS. A residential property must score at least 7 to qualify for the loan.
Passive House Certificate
Residential properties with a high level of energy conservation through passive heating and cooling techniques can receive this certificate. The certification process is completed when the building is being used.
ACT
ACT is another Energy Efficiency Rating that works somewhat similarly to the NatHERS certificate. The ACT promotes the development of The ACT national energy policy and construction market frameworks that integrate social, economic and environmental policy objectives.
Also read: Can Solar Panels Improve Your NABERS Rating?
Green Star Design
Buildings rated using the Green Star Design must have an 8 or higher score for a loan.
Residential Efficiency Scorecard
A Residential Efficiency Scorecard aids homeowners in understanding their home’s energy savings. A 7 or higher score is needed for a loan. A licenced inspector must complete the assessment for new or old houses, and the scoreboard displays the home’s rating in two ways. One rating considers the home’s solar power use, and the other does not.
It is always recommended that you hire professional BASIX consultants to prepare your BASIX certificate.
How to Apply for Clean Energy Loan?
When an individual applies for a loan, they have to disclose certain personal information and provide answers to a variety of questions. If borrowing jointly, both parties’ information will be needed for a successful application.
- Personal details such as name, age, sex etc
- Citizenship status
- Permanent address
- Marital status
- Employment details
- Credit score
- Income proof
- Regular bill payment status
- Owned properties
Paperwork Needed for a Loan to Buy New Property
It is not necessary to provide all documentation when you first apply. But if your application is approved for further assessment, you will need to submit all relevant papers soon.
Identification Documents for the Approval of Clean Energy Home Loan
Tax filings and other financial records are evidence of job and income. Bank statements and other similar documents that show your living expenses, savings, and deposits are all necessary documents that you have to provide to the bank.
Final Approval Process Timeframe
Once the bank has processed the application, they contact the applicant for follow-up questions. This process can be completed in just a few days business days if all the documents are in order.
Factors to Consider While Opting For Clean Energy Loan
Mortgage Offset Benefit
Verify whether the mortgage offset option is present in the house loan. You can lower the amount of interest you are paying with a mortgage offset. It takes into consideration the funds you have in other savings accounts instead of just basing interest on the whole loan amount.
Clean Energy Loan Impact
One of the greatest investments you would ever make is probably your clean energy home mortgage. It will not only assist you in purchasing a home, but it might also have a significant global impact.
Ask the bank you want to borrow from what it lends to and invests in if you want your house loan to mirror your ideals. This way, you will know if your house loan will support investments in positive areas like sustainable energy sectors.
For clean energy home loan approval, your BASIX documentation needs to be absolutely correct. Therefore, always collaborate with credible BASIX consultants.
Additional Loan Payments
You can lower the rate of interest you pay and accelerate the repayment of your mortgage by making additional loan payments. Some simple and fixed-rate mortgages won’t allow you to make extra payments without incurring fees. Make sure you select a plan that enables you to make prompt payments in addition to your regular repayments.
Payment Halt Options
Some loans offer extra features and perks that can help meet your needs, such as the option to halt payments under certain conditions. These options can provide you with some breathing room if you are struggling financially. The Eco pause option allows you the choice to redirect the loan funds for environmentally friendly home improvements like installing solar panels.
Redrawing Fund
Some loans let you redraw a certain amount of money you’ve paid for your mortgage. Selecting a loan with a redraw facility might be quite beneficial, especially for sustainable home renovations. Check the details since there may be charges linked with the redraw option based on your loan plan.
Wrapping Up
To get the best sustainability plans for your residential project and clean energy home loan working with the experts is the best option. Talk to building consultants and financial advisors today and start planning your next residential marvel.
