Energy efficiency set to shape client conversations and lending options
The New South Wales Department of Climate Change, Energy, the Environment and Water has launched a pilot program to introduce home energy ratings for residential properties.
While the trial aims to make energy efficiency information more accessible for buyers, sellers, and renters, its implications for mortgage brokers are significant.
As part of the initiative, a select group of real estate agents are offering free energy ratings to clients, with assessments carried out by Nationwide House Energy Rating Scheme (NatHERS) accredited professionals.
The trial, running until the end of 2025, will help determine how energy ratings can be incorporated into property transactions and inform the state government’s future approach to energy disclosure.
According to the Mortgage and Finance Association of Australia (MFAA), the growing emphasis on home energy ratings is expected to influence client expectations and lending practices for brokers in several ways:
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Changing client priorities: Borrowers are likely to begin asking about a property’s energy rating and how it may affect comfort, ongoing costs, and long-term value.
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Increased demand for green finance: As energy ratings become more common, more clients may seek information about loans designed for energy-efficient homes. Recent survey data shows that 42% of brokers are already assisting clients with green loan options, up from 35% earlier in the year, and this trend is projected to continue.
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Educational opportunities: Brokers have an opportunity to guide clients on how improving a home’s energy rating can reduce bills, lower emissions and improve affordability.
With governments preparing for a broader rollout of energy ratings, the MFAA said brokers who understand these assessments will be better equipped to address client questions and adapt to market changes. Staying informed about energy efficiency standards may help brokers maintain a competitive edge as the housing market evolves.
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