Passive House Finance

Making great homes more affordable is what motivates us. At the start of 2020 this has just become easier thanks to a new mortgage released by Bank Australia with the backing of the Clean Energy Finance Corporation (CEFC).

How much easier? About $130,000 but, of course, it depends on the details. The offer gives a 0.4% discount on the interest rate for the first five years if you have a certified passive house. That’s a big help early on a loan when most of the payments are going on interest.

In time the Big Four will be on board, it is well understood that people with better homes with lower running costs have more disposable income each month. Historically, this has been most evident in rental markets where cash-strapped tenants will always opt to pay a utility bill before rent as it takes longer to get evicted than to have your electricity cut off.

Why does matter? When the banks realise the benefits to them of better homes with lower default rates they will offer similar deals. It is likely that by the time the early adopters of the Bank Australia offer near their five year terms there will be other, similarly attractive deals to jump into. If the same 0.4% discount where to apply across that same $750,000 loan the loan-time saving would be almost $200,000.

While finance is incredibly important it is the comfort, healthy indoor environment and fresh air that make your home your refuge for you and your family.

The quality construction helps keep the outside out, except when you want it, and lets you be in control. This announcement from Bank Australia makes it 17% easier to build your passive house.