Bankmecu cuts variable green home loan rate to 5.79%

Bankmecu has cut its variable rate goGreen home loan by 19 basis points, taking the rate down from 5.98% to 5.79%.

The bank’s basic home loan rate is 6.08%

The green home loan is available to finance homes rating seven stars or more according to the Nationwide House Energy Rating Scheme (NatHERS), which is managed by the Department of Climate Change.

The goGreen home loans are designed to encourage people to purchase, construct or renovate energy-efficient homes to achieve a minimum seven-star energy rating. 

“We think that encouraging people to build more environmentally responsible houses is so important that we have reduced this rate outside the normal cycle of Reserve Bank announcements,” says the bank's managing director, Damien Walsh.

“Interest rates are an important cost consideration for consumers. If we lower the interest rates for green homes, we hope to make it easier for people to build and live in green homes."

Nationwide House Energy Rating Scheme (NatHERS) uses computer simulations to assess the potential thermal comfort of Australian homes on a scale of zero to 10 stars. The more stars, the less likely the occupants need cooling or heating to stay comfortable.

A dwelling can be rated before or after it is built.

The rating depends on the layout of the home, the construction of its roof, walls, windows and floor, the orientation of windows and shading to the sun's path and local breezes and how well these suit the local climate.

Bankmecu is a customer-owned bank that was previously the credit union mecu.

It became operating as an APRA-regulated bank in September last year.