We all know the meaning of the word ‘sustainable’ but, in practice, it often means different things to different people. For most of us, living sustainably means reducing waste, minimising our carbon footprint, and choosing local options. This mindset doesn’t have to stop at daily habits – it can extend to how we build, renovate, or upgrade our homes 

There are likely countless ways you can add more sustainable features to your house and, if you have a home loan, building sustainably or making sustainable improvements could help you to save on your repayments.

What features make a house sustainable?

There’s no one-size-fits-all approach to creating a sustainable home. For some, a ‘green’ home is one that uses locally-sourced materials, prioritises the environment in its design, is incredibly well-insulated, and is self-sufficient or off-grid. Many such traits are found in houses designed by specialist architects and involving innovative technology, like the house featured below: 

  

However, owning an extremely sustainable home typically means starting from the ground up with the help of experts. That means they tend to cost more to build than most homes you see dotted over Australia.

For most homeowners, a more attainable sustainable home will focus on energy efficiency, improved insulation, reduced water usage, and minimising its general environmental impact. Many of the most common sustainable features of Australian houses, such as solar panels and energy-efficient appliances, can be added to an existing property.

Features that can make a house more energy efficient

Switching a whole nation from traditional energy sources like coal or gas to renewable energy takes time. Even if renewable projects had unwavering support from governments of all levels, infrastructure would still need to be developed and, in some cases, the necessary technology simply isn’t there yet. Fortunately, homeowners have the power to take immediate action by installing energy-efficient features.

  • Solar panels and home batteries
    By installing solar panels on your home, you can generate your own electricity and reduce your reliance on the grid. By also installing batteries, you can store the solar power you generate for a rainy day (and nighttime).

  • Solar hot water heater
    Solar hot water heaters use solar power to heat water and can cut a house’s energy consumption significantly.

  • Energy-efficient appliances and smart home systems
    Choosing appliances with high energy star ratings and using technology to monitor and manage energy use efficiently can help reduce energy consumption.

Features that can better insulate a house

Australia’s climate can be harsh and varied. From the depths of winter in Hobart to the heights of summer in Darwin, Australians often rely on some form of climate control. However, heaters and air conditioners need to work harder and for longer if the hot or cool air they produce simply escapes due to poor insulation.

  • Double glazing
    Installing double-glazed windows can improve insulation which can help maintain indoor temperatures and reduce energy use.

  • Insulation
    Adding quality insulation to walls, ceilings, and floors can reduce heating and cooling costs and energy usage.

  • Insulated window treatments
    Using thermal curtains or blinds can help block heat in the summer and retain warmth during winter.

Features that help a house use less water

Water is a precious resource, particularly in times of draught – which Australia is prone too. Incorporating water-saving features into your house can bring significant conservation and sustainability benefits.

  • Water-saving fixtures
    Installing low-flow taps, dual-flush toilets, and water-efficient showerheads can help conserve water.

  • Rainwater tanks and greywater recycling systems
    Collecting and using rainwater and/or greywater for outdoor needs or non-potable indoor use, such as toilet flushing, can help save water.

  • Native landscaping
    Native vegetation typically requires less water and supports local biodiversity.

Features to reduce a house’s general environmental impact

To create a home that is truly environmentally friendly, it’s essential to think beyond energy and water efficiency. The materials and practices you use in construction and renovation play a crucial role in reducing your home's overall impact on the environment.

  • Sustainable building materials
    Opting for eco-friendly materials, like recycled timber, bamboo, or sustainably sourced bricks, can minimise the environmental impact of your home.

  • Composting systems
    Integrating composting facilities or bins into your outdoor space can help reduce food and organic waste, creating nutrient-rich compost for gardening.

What are sustainable home loans?

Adding sustainable features not only minimises the impact your house has on the environment and saves you money on bills, but can also open up opportunities for financial savings through green home loans. Sustainable or green home loans are specialised mortgage products designed for homeowners with energy-efficient homes. They typically offer discounted interest rates for a set period, which carry the potential for significant savings.

To qualify for a green home loan, your house will generally need to have achieved a specific NatHERS rating or hold a Green Star Homes certification. However, some products are available to homeowners who have recently completed specific sustainable upgrades. If you’re purchasing or building a new home, it may have been granted a NatHERS rating or Green Star Homes certification during the build process. For existing homes, you might consider asking a NatHERS assessor to evaluate your property and determine its eligibility for a green home loan.

Competitive green home loans available now 

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Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.43% p.a.
6.68% p.a.
$2,679
Interest-only
Variable
$0
$530
80%
  • Interest only during construction period
  • No monthly or ongoing fees
  • Offset sub-account available after completion
  • Unlimited additional repayments after completion
 Disclosure
5.94% p.a.
5.99% p.a.
$2,978
Principal & Interest
Variable
$null
$null
80%
5.99% p.a.
6.51% p.a.
$2,995
Principal & Interest
Variable
$0
$530
90%
  • No application, ongoing monthly or annual fees.
  • Available for refinance or purchases. Quick and easy online application process.
  • Dedicated loan specialist throughout the loan application.
  • Discounted interest rate for 5 years for homes with an eligible solar system
 Disclosure
6.14% p.a.
6.85% p.a.
$3,043
Principal & Interest
Variable
$0
$720
90%
6.15% p.a.
6.43% p.a.
$3,046
Principal & Interest
Variable
$299
$0
80%
6.19% p.a.
6.58% p.a.
$3,059
Principal & Interest
Variable
$0
$530
90%
90% LVR
  • You MUST already have Solar or a documented plan to install within 90 days to be eligible for this loan
  • Available for refinance or purchase
  • No monthly, annual or ongoing fees
 Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of .

Important Information and Comparison Rate Warning

Tips for navigating sustainable home loans

Applying for a green home loan might seem complex, but it can be simplified by taking these three steps:

  1. Ensure your home has proper documentation, such as a NatHERS certificate
  2. Consult with lenders to find out their specific criteria for green loan eligibility
  3. If you’re planning renovations or upgrades, look into whether these changes can make your home eligible for a green home loan in the future

Image by Bill Mead on Unsplash

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