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APRA highlighted the extent of Australian banks’ lending to carbon-emitting parts of the economy in its climate vulnerability assessment, which focuses on transition and physical climate risks. Under the CVA, banks are required to assess residential mortgages, as well as corporate and business lending exposures. Together these account for three quarters of banks’ carbon exposure.
“It may actually be that some of these customers choose to stay with us for longer, but that’s certainly not the main driver behind this offer,” he said.RateCity said there are now seven smaller lenders offering green mortgages with variable rates as low as 1.88 per cent at loans.com.au and 1.9 per cent at Bank Australia, which has a 2030 target for its net zero plans.
“The green home loan space has had a slow start in Australia, but with CBA now in the game, more lenders are likely to follow.”