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· Posted on
February 21, 2024

CommBank will offer cheaper home loans for green homes

CBA is once again showing it's down with the cool kids... so let the millennials roll in.

What's the key learning?

  • CBA will offer lower interest rates on mortgages that meet its environmentally-friendly standards (i.e. solar panels, no gas appliances) to attract younger customers
  • Over the last decade, big banks have come under fire for financing fossil fuel projects that cause significant environmental damage
  • Given the pressure banks are facing to turn to more environmentally-friendly pursuits... we can see CBA's motivation to join the green home loan game.
  • ‍

👉 Background: CommBank is Australia's largest bank - and it's got the biggest home loan book in the country. But CBA ain't about to quit while it's ahead.

👉 What happened: CBA is getting its green on 🍀. It will offer lower interest rates on mortgages that meet its environmentally-friendly standards (i.e. solar panels, no gas appliances). The plan is to attract younger customers.

👉 What else: It would be the first big, traditional lender to enter the green home loan space... but probably not the last, 'cos we foresee some tough competition up ahead.

What's the key learning?

💡 Over the last decade, big banks have come under fire for financing fossil fuel projects that cause significant environmental damage.

💡 Figures from NAB and Westpac show mortgages are the second-biggest source of the banks' financial emissions. And CBA have the largest mortgage exposure of all.

💡 So, given the pressure banks are facing to turn to more environmentally-friendly pursuits... we can see CBA's motivation to join the green home loan game. Ready Player 2.  

‍

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