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Financial benefits of Homestar 6

 

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Project overview

A residential development project aimed to achieve a Homestar 6 rating, reflecting strong performance in energy efficiency, health, and comfort. The developer explored the financial implications of certification, including build cost increases and potential savings from accessing lower-interest green finance. 

Investment in Homestar certification
To meet the Homestar 6 standard, the project incurred the following additional costs: 

  • Build cost increase: 
    2% premium on a $2,500,000 build = $50,000 
  • Accreditation & certification fees: 
    Homestar consultants and certification = $10,000 
  • Total Additional Costs: $60,000 

Access to lower-interest finance
By achieving Homestar 6, the project qualified for green finance at a reduced interest rate. The financial impact was significant: 

  • Loan amount: $2,560,000  
  • Interest rate reduction: 1.63% per annum  
  • Annual interest savings: $41,728  
  • Total savings over 5 years: $208,640 

Net Financial Benefit
Despite the upfront investment of $60,000, the project realised a net saving of $148,640 over five years, purely from reduced interest costs. This is over and above the market benefits of a 6 Homestar rating which include: 

  • Promoting the property as being verifiably comfortable all year and not overheating. 
  • Improved durability due to minimising internal moisture. 
  • Significantly reduced power bills. 
  • Opportunity for potential buyers to access lower interest, Healthy Home mortgage rates. 

Key Takeaway for Developers
Investing in Homestar certification not only helps to enhance the environmental and health performance of a building but can also unlock substantial financial benefits through access to green finance. This case demonstrates that savings can far outweigh the initial costs, making Homestar a smart business decision. 

 

 

Bank Offering Find out more
ANZ Sustainability-Linked Loans & Green Finance ANZ Sustainable Finance
ASB Business Sustainability Loan ASB Business Sustainability Loan
BNZ Sustainable Finance Framework BNZ Sustainable Finance
Kiwibank Sustainable Business Loan Kiwibank Sustainable Business Loan
Westpac Sustainable Business Loan Westpac Sustainable Business Loan
     

 

Disclaimer: the table above is not an exhaustive list of all sustainable bank offerings and only covers those that NZGBC is aware of. Please talk to your bank about available options that align with your unique situation.

Find an approach that's useful for you

Sustainable finance helps incentivise sustainable developments and property portfolios.

Here are some ways organisations have been using NZGBC tools to obtain better terms on their finance. Have a chat to different banks to know what is right for you.

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Sustainable development finance

For the design and construction phase.

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Sustainable investment loans

Great for property portfolios

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Green bonds

Another mechanism that has been used to obtain sustainable finance

Investment finance options

Property owners have been using Green Star Performance and NABERSNZ to verify the sustainability of their property portfolios, obtaining better terms on investment finance from their bank/s. 

Take a look at the NZGBC sustainable finance guide and talk to your financier/s today to explore options for your portfolio. Note that some financiers are also able to create bespoke sustainable finance deals to suit you.

 

 

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Read our Sustainable Finance Guide

We’ve created the Sustainable Finance Guide to help lenders and borrowers better understand what makes a building truly sustainable. With buildings responsible for around 20% of New Zealand’s emissions, our guide outlines how certifications like Green Star, Homestar, and NABERSNZ can support green loans and bonds. 

By using our rating tools, many in the property sector are already accessing better finance terms while cutting carbon. We’re also introducing pathways like a 30% emissions reduction target for NABERSNZ-rated buildings and recognising Homestar v5 under the Climate Bonds Standard—helping drive real change in how we finance the built environment. Find out more

 

Real examples of green finance driving change

Discover how developers and property owners are unlocking financial value through sustainable building. Oyster Property Group is embedding NABERSNZ benchmarking across its $1.8B portfolio, while Metlifecare’s 6x6 project is backed by a $1.25B sustainability-linked loan targeting 6 Green Star ratings. A Homestar 6-rated residential project shows how a modest upfront investment led to $148K in net savings over five years—proving that green building delivers real financial returns.

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Oyster Property Group: Energy benchmarking the new business as usual
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Metlifecare 6x6 project
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Financial benefits of Homestar 6