Under a green mortgage, a bank or mortgage lender offers a house buyer preferential terms if they can demonstrate they have taken steps to reduce their impact on the environment. 

Preferential terms from the lender can include discounted interest rates, additional funding to support sustainable home improvements OR a higher LVR or borrowing amount compared to a standard home loan. 

Not only that, local, state and federal governments look to provide cashbacks and rebates as an extra kicker.