As part of its participation in a Nationwide House Energy Rating Scheme (NatHERS) trial for existing homes, ING will be offering select mortgage borrowers and applicants a free energy rating assessment.
Previously, only new dwellings or those undergoing major renovations were eligible to receive a NatHERS rating.
Home loan borrowers applying to refinance to ING or top up their existing ING home loan might be offered to participate in the trial.
Homes with certain star ratings are typically eligible for lower rate green home loans, though ING doesn't offer any such product.
The trial will allow owners of existing dwellings to receive an unofficial energy rating score out of 10 stars, as well as tips on how to improve their rating.
Homeowners can use the findings to guide sustainable home improvements and seek a paid assessment when coverage for existing homes launches in mid-2025.
While ING doesn't offer a green home loan product, ING mortgage customers can access a low-rate Green Upgrade Loan add-on to fund energy efficiency improvements.
The add-on loan currently offers a five-year fixed rate of 3.74% p.a. (5.16% p.a. comparison rate*) and could be used to pay for improvements flagged in a NatHERS assessment.
Homeowners and renters can also request to be a part of the trial via the CSIRO website.
NatHERS trial to help homeowners lower energy bills & reduce emissions
"Housing accounts for about 25% of electricity use and more than 10% of emissions, which is why improving home energy efficiency is a key element of the Albanese Government's comprehensive plan to reach net zero by 2050," said Josh Wilson, assistant minister for climate change and energy.
"Extending the long-standing and trusted NatHERS to existing homes will give Australians who live in older residences the opportunity to improve the energy efficiency and climate resilience of their homes – to reduce energy costs, improve household health and comfort, while also helping to reduce emissions."
It's estimated that seven in 10 existing Australian homes (around 7.7 million dwellings) have an energy rating of three stars or lower.
Increasing a home's rating from three stars to five stars could reduce its energy expenditure for heating and cooling by around 40%.
Each assessment will take place at the same time as a property valuation and it will take between 30 and 60 minutes to collect the on-site data.
The NatHERS assessment trial is testing the process of rating the energy performance of existing dwellings before it's formally launched.
Currently, a new home's design, materials and construction, fixed appliances, and on-site energy generation and storage is considered when conducting rating assessments.
"At ING we're committed to reducing carbon emissions and that's why we're thrilled to be the first bank in Australia to participate in the NatHERS trial for existing houses," ING head of home loans George Thompson said.
"With the knowledge gained through this trial customers will have a better indication of what home improvements to prioritise to deliver the best energy efficiency and cost outcomes."
Are existing dwellings currently eligible for green home loans?
Eligibility criteria for green home loans typically include either a NatHERS rating or a Green Star certification – both of which are only available on new or substantially renovated homes.
However, your existing home might be eligible for specific green mortgage products if you've made certain energy-efficient upgrades.
For instance, you might be eligible for Bank Australia's Renovate Clean Energy Home Loan - which currently advertises an interest rate of 5.38% p.a. (6.14% p.a. comparison rate*) - if you've made three eligible upgrades or improved your Residential Efficiency Scorecard by at least one star.
Or, if you've recently installed solar panels or plan to in the near future, you could be eligible for loans.com.au's Solar Home Loan, which advertises a discounted rate of 5.99% p.a. (6.44% p.a. comparison rate*) at the time of writing.
Finally, if your home features at least five eligible sustainable features, such as solar panels, battery storage, or double glazing, you could apply for Reduce's Eco Home Loan, which advertises a 5.64% p.a. (5.69% p.a. comparison rate*) interest rate right now.
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| Lender | Home Loan | Interest 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 | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.18% p.a. | 6.44% p.a. | $2,575 | Interest-only | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.74% p.a. | 5.79% p.a. | $2,915 | Principal & Interest | Variable | $null | $null | 80% | |||||||||||||
5.70% p.a. | 5.99% p.a. | $2,902 | Principal & Interest | Variable | $299 | $0 | 80% | |||||||||||||
5.74% p.a. | 6.19% p.a. | $2,915 | Principal & Interest | Variable | $0 | $530 | 90% |
| Disclosure | |||||||||||
5.89% p.a. | 6.50% p.a. | $2,962 | Principal & Interest | Variable | $0 | $721 | 90% | |||||||||||||
5.94% p.a. | 6.28% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Disclosure |
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