Eco Build Finance

An eco build is a statement of how you want to live: lower impact, lower running costs, and a home that works with the environment rather than against it. Where the finance gets interesting is the construction method. A high-energy-rating home built with standard materials is straightforward, and some lenders even offer green discounts for it. But alternative materials like rammed earth, hempcrete, or strawbale, or an off-grid design, can make some lenders cautious and may require a specialist valuation. Settled Funding Group works with people building sustainable and eco homes across Australia, identifying lenders from the 90+ panel who are comfortable with the build type. For unique scenarios, we can introduce you to private finance options.

Who This Is For

• •Those building a passive house or a high-energy-rating home
• •Owner-builders constructing with sustainable materials such as rammed earth, hempcrete, strawbale, or recycled materials
• •Buyers building an off-grid or low-impact home
• •Those building to a high NatHERS star rating
• •Eco-conscious builders constructing carbon-neutral or low-emission homes
• •Those who may qualify for green home loan discounts offered by some lenders

How Eco Build Finance Works

Eco build finance is a staged construction loan, and the path it takes depends almost entirely on the materials and design. A high-star-rating home built with conventional materials is easy to finance, and some lenders apply green discounts to it. Alternative materials such as strawbale or rammed earth, or an off-grid setup, are where the friction appears: they can trigger lender caution and often need a specialist valuation that recognises the construction method. Joseph Farhat reviews your construction method, materials, and energy rating, then identifies lenders on the panel comfortable with the build type, including any offering green loan discounts.

What Lenders Assess for Eco Build Finance

• •Construction method and materials: non-standard materials such as strawbale, hempcrete, or rammed earth can trigger lender caution and require a specialist valuation. Standard materials with green features are straightforward; alternative materials need the right lender.
• •Builder experience: a builder with a track record in eco construction strengthens the application, particularly where the materials are non-standard.
• •On-completion value: lenders lend against the assessed value of the completed home. A valuer experienced with the construction method matters where materials are unusual.
• •Energy rating: some lenders offer green discounts for high NatHERS ratings, so a strong rating can improve your terms rather than just your running costs.
• •On-grid or off-grid: off-grid homes can reduce some lenders' appetite, so the panel matters where the design is fully off-grid.
• •Income and serviceability: banks require full doc, while non-bank lenders accept alternative documentation for self-employed borrowers.

The Eco Build Finance Process: What to Expect

1. 1.Initial review: share your construction method, materials, energy rating, build plans, and income position with Settled Funding Group. Joseph Farhat identifies lenders comfortable with the build type, including any offering green loan discounts, before anything is formally submitted.
2. 2.Full application prepared and submitted with the build contract, plans, energy rating documentation, land title, and income documentation.
3. 3.Lender commissions an on-completion valuation. A specialist valuation is arranged where non-standard materials are involved.
4. 4.Formal approval and loan documents issued once the valuation and assessment are complete.
5. 5.Staged drawdowns released as construction milestones are reached, through to practical completion. Settled Funding Group coordinates each drawdown so the build keeps moving.

Indicative Finance Options

Eco Build Finance Broker

Eco and sustainable builds often use methods and materials that mainstream lenders are still cautious about. Off-grid systems, alternative construction methods, passive design, and non-standard materials can all complicate the valuation and how a lender assesses the security, and many banks apply tighter LVRs or hesitate on anything outside a conventional brick-and-tile build. A project one lender treats as too unusual is often funded comfortably by another that understands sustainable construction. A broker who knows which lenders genuinely fund eco and energy-efficient builds saves you time, avoids wasted applications and unnecessary credit enquiries, and reaches non-bank and specialist lenders that borrowers cannot easily approach directly. For an unconventional sustainable build, a broker knows where the deal will actually get done.

Settled Funding Group represents you, not the lender. Joseph Farhat reviews your build method, materials, design, and income position, then matches the project to the right lender from our 90+ panel and negotiates terms on your behalf. We prepare and manage the application from assessment through to your first construction drawdown, and for unique scenarios we can introduce you to private finance options. As a broker, we are typically paid by the lender on settlement, so in most cases there is no direct cost to you. If your eco build is unconventional or has been declined elsewhere, talk to us early and we will tell you honestly what is achievable.