Refinancing to Unlock Home Equity – And Fund Your Eco-Friendly Renovation
With rising interest rates and declining property prices, now might be the perfect time to refinance, unlock home equity, and give your property an energy-efficient upgrade—all in one move.
Why Energy-Efficient Homes Are More Valuable
Eco-friendly homes sell faster and at premium prices compared to traditional properties. The 2022 Domain Sustainability in Property Report found that energy-efficient homes in the median range sell for $125,000 more (+17.1%), while energy-efficient apartments sell for $72,750 more (+12.7%).
Dr. Nicola Powell, Domain’s Chief of Research and Economics, notes that eco-friendly features boost buyer interest, with sustainable listings attracting 8.7% more views on average.
So, if you’re planning renovations, investing in energy-efficient upgrades could be a smart financial move.
The Top 3 Eco Features That Buyers Want
1. Solar Power
With Australia’s abundant sunshine, installing solar panels is a high-value investment. A 2020 Origin Energy survey found that 77% of Australians view homes with solar panels as more valuable, and 55% of renters would pay more for solar-powered properties.
2. Water Tanks
A sustainable irrigation system helps homeowners reduce water bills while maintaining lush gardens. Collecting rainwater ensures a free, nutrient-rich water supply during dry seasons.
3. Insulation & Glazing
Upgrading window glazing and insulation can significantly reduce energy costs by improving thermal efficiency—keeping homes cooler in summer and warmer in winter.
How to Finance Your Eco-Friendly Home Renovation
Option 1: Green Loans
Many lenders now offer green loans, designed to help homeowners install energy-efficient upgrades. These loans often come with lower interest rates, encouraging sustainability.
Option 2: Unlocking Home Equity Through Refinancing
Refinancing allows homeowners to tap into their equity and fund renovations. With property prices increasing by 23.7% in 2021, many homeowners have more equity than they realize.
Example: How Refinancing Works
Let’s say you bought a $800,000 home three years ago. After market growth, it’s now worth $1 million. If your loan balance is $500,000, refinancing to $700,000 (70% of your property’s new value) could unlock $200,000 for renovations.
Did you know? Most banks allow homeowners to borrow up to 80% of their property’s value.
Government Rebates & Incentives
Don’t forget to check government rebates that could help subsidize eco-friendly home upgrades. Programs vary by state, so it’s worth exploring available incentives.
Let CBM Mortgages Help You Navigate Refinancing
At CBM Mortgages, we help homeowners secure better mortgage deals and unlock equity for energy-efficient renovations.
📞 Want expert advice? Contact us today, and we’ll help you:
✔ Understand your refinancing options
✔ Assess your borrowing power using our loan calculators
✔ Secure a competitive mortgage rate
🚀 Ready to start your eco reno? Explore refinancing solutions: CBM Mortgages Refinancing Guide
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
Written by Craig McDonald 08/06/2025
