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Firstmac reaches for the stars in sustainable housing with first new green home loan

Australia’s largest non-bank financial institution Firstmac will help deliver more energy efficient housing through a green home loan that offers discounted interest rates for eligible homes.
Location
National
Investment
Property
Housing
Category
Renewable energy
Low emissions
Energy efficiency

Australia’s largest non-bank financial institution Firstmac will help deliver more energy efficient housing through a green home loan that offers discounted interest rates for eligible homes. 

Qualifying green home loans will enable borrowers to benefit from a 0.4 per cent finance discount for up to five years on loans of up to $1.5 million. Construction loans will receive an interest rate discount of up to 1.58 per cent. 

The homes will be among the most energy efficient in Australia, meeting or exceeding a 7 star rating under the Nationwide House Energy Rating Scheme (NatHERS). Firstmac will offer the loans Australia-wide, with an expected average loan size of some $450,000.  

 

7 Star
NatHERS
Aust-first
securitisation
$108.5m
CEFC finance
We believe that this transaction will contribute to securing stable profits through international diversified investment and will be in line with the bank's philosophy of sustainable management.
Hidetoshi Hasegawa
Global Head of Credit and Alternative Investments, Norinchukin

In an Australian first, Firstmac raised $750 million through a green mortgage-backed securitisation where all the underlying mortgages are backed by environmentally friendly housing.   

Firstmac will use some $230 million of the finance to offer its first Green Home Loan product, tied to NatHERS. It will also refinance a pool of existing Firstmac home loans valued at some $520 million, where these comply with the residential Low Carbon Buildings Criteria created by the global Climate Bonds Initiative.  

In a demonstration of growing investor confidence in tailored finance for green homes, leading Japanese bank, Norinchukin has backed the securitization with $637.5 million. 

With the average home having a life span of 50 years or more, the green homes loans have the potential to lock in lower energy consumption over the long term, as well deliver more comfortable homes that are cheaper to run. 

We are pleased to support efforts for a sustainable future and deepen our existing relationship with similarly-minded organisations like Norinchukin and the CEFC.
Kim Cannon
Managing Director, Firstmac

The CEFC invested $108.5 million to the securitisation its second investment in the growing green home loan market following the successful launch of the Bank Australia Clean Energy Home Loan in 2020. Bank Australia has already drawn on $90 million in CEFC finance. 

Please note: The CEFC does not provide finance to individual borrowers and is not involved in individual financing decisions. Interested borrowers should contact Firstmac directly. 

 

National, Property, Housing, Renewable energy, Low emissions, Energy efficiency