Competitive rate of 3.74%, backed by Clean Energy Finance Corporation
ING Australia will soon launch a new loan that will reward its customers who want to improve the energy efficiency of their homes, offering one of the best in market five-year fixed rates of 3.74%.
The ING Green Upgrade Loan, which will be available to eligible ING home loan customers from December, can be used to borrow amounts between $5,000 and $50,000 and can be used for solar panels and other energy efficiency upgrades. Eligibility and credit approval criteria apply.
The low-rate loan of 3.74% (5.16% comparison rate) is being launched with the support of the Australian government-owned Clean Energy Finance Corporation (CEFC), through its Household Energy Upgrades Fund (HEUF).
The $1 billion fund provides discounted finance to co-financiers to increase sustainability across the housing sector. The CEFC will invest up to $75 million to support the ING Green Upgrade Loan.
Alongside with the new loan, ING is also collaborating with BOOM! Power to introduce the new Home Energy Helper, a website for customers to source quotes from accredited installers, see what rebates they may qualify for and assess the potential impact of their renovation on their energy bills and household emissions.
The Home Energy Helper will launch in December in Victoria, NSW and the ACT. It will be rolled out nationally in early 2025.
Strong demand for green loans
ING head of mortgages George Thompson (pictured above left) said the bank recognised a strong demand for green loans with brokers reporting that Australians were eager to make energy-efficient upgrades to their homes.
“We're excited to launch our Green Upgrade Loan at a competitive rate of 3.74%,” Thompson said.
“The Green Upgrade Loan not only offers the best home loan rate in the market—180 basis points lower than some savings products—but also addresses the rising cost of living, particularly where driven by energy bills.
“We know there’s never been a greater need for Aussies to reduce household costs and this product aims to do that.”
Thes new loan also deepens the relationship brokers have with their clients, said Thompson.
“It enables them to provide tailored solutions with the intention of helping customers save money in the long run. By enhancing their value proposition, brokers can better support their clients in navigating the financial landscape while promoting energy efficient home improvements.”
Thompson said Home Energy Helper would simplify the process for homeowners, describing it as a one-stop shop for customers when it came to sourcing quotes, checking rebates and assessing the energy savings from planned efficiency upgrades.
The partnership with CEFC was crucial as it fostered collaboration among government, banks, and customers to reduce carbon emissions and promote sustainability.
CEFC welcomes finance partnership
Ian Learmonth (pictured above right), CEO of the CEFC, said helping households lower their carbon footprint would be a critical factor in achieving net zero emissions by 2050.
“Our work crowding in additional private capital through the HEUF will help deliver a catalytic outcome, providing low-cost financing together with a range of co-financiers for home upgrades that improve energy performance,” Learmonth said.
Green Upgrade Loan reduces barriers
ING Australia CEO Melanie Evans (pictured above centre) said household emissions were one of the biggest contributors to Australia’s carbon footprint.
“This is why ING, together with BOOM! Power, are helping customers to make improvements to their home to try to reduce their household emissions,” said Evans.
“We know that Australians find renovating their home for energy efficiency complex, costly and time consuming. The Home Energy Helper and Green Upgrade Loan aims to remove the complexities and barriers that are stopping people from making their homes more energy efficient.”
ING customers wanting to know about the Green Upgrade Loan can contact their mortgage broker or the bank on 1800 467 415.
