Turbocharge Wealth
Homeowner’s Code
Rattle the MarketConsumer awareness regarding the advantages of green home loans in Australia continues to lag, as revealed by a recent survey by Gateway Bank, a customer-owned financial institution. The survey highlighted that only 28% of respondents were familiar with the existence of green home loans, showing a marginal increase from figures two years ago. This points to a significant gap in understanding among borrowers regarding the full spectrum of financial options available to them.
The study further indicated that a substantial 75% of borrowers are unlikely to seek assistance from a broker when considering green home loans, despite brokers being responsible for originating 76% of all home loans. Zeb Drummond, the Chief Operating Officer of Gateway Bank, emphasized that the lack of awareness extends beyond brokers to encompass both consumers and the broker market in general. He attributed this lack of awareness to the limited number of lenders offering green lending products.
Drummond stressed the importance of brokers engaging with lenders that provide green home loans to grasp the certification processes and benefits associated with such loans. While the research underscores the growing significance of sustainable property features to buyers, with 81% considering them crucial or important in their homeownership decisions, the challenge lies in aligning these sentiments with suitable financing options.
One major hurdle identified is the misconception among consumers that green home loans are solely available through direct lender engagement, leading them to overlook smaller lenders specializing in green lending. Contrary to popular belief, major banks are not the exclusive providers of green home loans. Institutions like Gateway Bank, Bank Australia, and FirstMac offer substantial green home loan options in the market, presenting a clear opportunity for brokers to diversify their portfolios and cater to the increasing demand for sustainable financing solutions.
Gateway Bank’s commitment to accepting the Green Building Council of Australia’s Green Star Buildings – Apartments Pathway certification under its green home loan eligibility criteria underscores the institution’s dedication to promoting sustainable living. The financial analysis conducted by Gateway Bank indicates that while Green Star apartments may entail slightly higher construction costs initially, the long-term financial benefits, including lower interest payments, energy savings, and enhanced property value appreciation, far outweigh the initial investment.
As the trend towards sustainable living gains momentum, the demand for green lending solutions is expected to rise. With an increasing number of apartment projects adopting green building practices, there is a growing market for sustainable apartment loans that remains largely untapped. Gateway Bank’s research suggests substantial savings over the long term for buyers opting for Green Star apartments, emphasizing the compelling proposition of sustainable living in terms of comfort, environmental impact, and financial gains.
In conclusion, the findings underscore the urgent need for enhanced consumer education and broker engagement to bridge the awareness gap surrounding green home loans and capitalize on the financial, environmental, and societal benefits they offer. Mortgage brokers, in particular, have a prime opportunity to expand their service offerings and cater to the evolving preferences of homebuyers seeking sustainable living solutions.
Home Loan Handbook