What Is a 7-Star Home — and Why Do Lenders Love Them?
Published September 2025
In Australia, the energy efficiency of a home is measured using the Nationwide House Energy Rating Scheme (NatHERS). A 7-Star rating means your home is designed to stay comfortable year-round with minimal heating and cooling — saving energy, money, and emissions.
🏡 What makes a home 7-Star?
- Smart orientation and passive solar design
- High-performance insulation and glazing
- Efficient heating, cooling, and ventilation systems
- Minimal thermal leakage and air gaps
These features aren’t just good for the planet — they’re good for your wallet. A 7-Star home can cut energy bills by up to 50% compared to a 6-Star home, which has been the minimum standard in most states.
💰 Why lenders reward efficiency
Lenders are increasingly offering better rates and terms for energy-efficient homes. Why?
- Lower default risk: Efficient homes cost less to run, making repayments more manageable.
- Higher valuation: Buyers value comfort, resilience, and lower bills — boosting resale value.
- Climate resilience: Homes that stay comfortable in extreme weather are seen as lower risk assets.
📋 How to qualify for a green home loan
To access green finance options, you’ll typically need:
- A NatHERS certificate showing a 7-Star+ rating
- Plans or specs for energy-efficient upgrades
- Property type and location that meets lender criteria
At Green Path Finance, we help you navigate these requirements and compare lenders who reward sustainability.
🔍 Ready to explore your options?
Whether you’re building new or upgrading an existing home, we can help you access finance that supports your goals — and the planet’s.