#Community Issue 48 November 2021 November 2021 | Page 15

PROPERTY & INVESTMENT
FNB is the only other bank with a green home loan product offering on the horizon . Their Eco Energy Home Loan will be on the market later this year , but , unlike at Absa , customers can qualify if they are purchasing any new or existing EDGE certified property in South Africa .
‘ EDGE certification ranges from level 1 to 3 , so depending on the level of the certification , customers can get up to 0.5 % reduction in their interest rate ,’ explains Mfundo Mabaso , growth head of FNB Home Finance .
The future is looking green
Buying a green property has many benefits , continues Mabaso : ‘ Not only does the property have the added benefit of lower utilities due to reduced energy and water consumption , but once the property has been certified green , it is considered always green , which means that homeowners will not have to worry about losing their benefits .’ Experts anticipate that the trend of building green developments in South Africa will increase over the next few years , and Absa is already looking at how to help existing homeowners of non-EDGE certified properties .
Absa was the first to launch . It offered an Eco Home Loan in partnership with Balwin Properties in 2020 . Currently , the product is offered at four EDGE certified developments : The Reid and The Polofields in Johannesburg , The Blyde in Pretoria , and De Zicht in Cape Town .
A green home loan is similar to a normal home loan . Applying for one still requires the bank to conduct an affordability assessment , so you still need to ensure that you have a satisfactory credit profile and can afford the monthly instalments . The Absa Eco Home Loan offers qualifying customers a rate concession , which is added to any existing Absa Home Loan benefits that they would qualify for , incentivising the value element of opting for a green home .
‘ We have recognised that sustainable living is a priority for our customers , and so it must be a priority for us ,’ says Geoffrey Lee , managing executive of Home Loans at Absa Retail and Business Bank .
‘ Loadshedding and upcoming electricity tariff increases have created the need for homeowners to explore enhancing their homes with sustainable energy solutions , and homeowners are considering installing solar solutions such as Solar PV and batteries to keep the power on during loadshedding and to reduce energy consumption from the grid . Absa Home Loan customers have the option of using equity in their properties to access funds to purchase these solutions ,’ he concludes .
Although climate change is now firmly on the global agenda , it will be some time before South Africa is on par with international green trends , but the green home loan offering by Absa and FNB is definitely a step in the right direction . As the market grows , homeowners ( and developers ) will probably require better guidance on the concept of energy efficiency and the financial benefits of going green .
13 P R O P E R T Y N E W S
‘ The response since the launch of the Absa Eco Home Loan has been promising and we have received tremendous interest from developers who have the intention of building EDGE certified developments . This is encouraging , as it suggests that developers realise the benefit of building energy- and water-efficient developments to support the global sustainability agenda ,’ he continues .
Zeenat Moosa Hassan