Green home loans

Reduce your environmental footprint and increase your savings with a green home loan.

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Looking for a green or clean energy home loan?

Here's a table of green home loans. Some of these loans are from our commercial partners. If a loan doesn't have a green button you will need to search for it on the lender's own website if you want to submit an enquiry.
$
years
Name Product Interest Rate (p.a.) Comp. Rate (p.a.) Fees Monthly Payment

loans.com.au Green Home Loan P&IHome≥ 10% Deposit

loans.com.au Green Home Loan
2.08%
2.36%
  • App: $0
  • Ongoing: $0 p.a.
$562
Buying an energy-efficient home to live in? Get a discounted rate and borrow up to 90%.

Firstmac Green Home Loan Construction IO≥ 10% Deposit

Firstmac Green Home Loan Construction
2.19%
2.53%
  • App: $0
  • Ongoing: $0 p.a.
$570

Regional Australia Bank Sustainable Home Loan P&IHome≥ 5% Deposit

Regional Australia Bank Sustainable Home Loan
2.79%
2.83%
  • App: $250
  • Ongoing: $0 p.a.
$617

Firstmac Green Offset Home Loan P&I≥ 10% Deposit

Firstmac Green Offset Home Loan
2.34%
2.65%
  • App: $0
  • Ongoing: $0 p.a.
$582

Regional Australia Bank Sustainable Home Loan IOHome≥ 5% Deposit

Regional Australia Bank Sustainable Home Loan
3.04%
2.85%
  • App: $250
  • Ongoing: $0 p.a.
$637

Firstmac Green Basic Home Loan P&I≥ 10% Deposit

Firstmac Green Basic Home Loan
2.19%
2.50%
  • App: $0
  • Ongoing: $0 p.a.
$570

loans.com.au Green Home Loan IOHome≥ 10% Deposit

loans.com.au Green Home Loan
2.08%
2.39%
  • App: $0
  • Ongoing: $0 p.a.
$562
Construction Loan: A competitive variable rate loan available for the construction of an energy-efficient home.

Firstmac Green Offset Home Loan P&I≥ 10% Deposit

Firstmac Green Offset Home Loan
2.69%
3%
  • App: $0
  • Ongoing: $0 p.a.
$609

loans.com.au Green Home Loan IOInvestment≥ 10% Deposit

loans.com.au Green Home Loan
2.59%
2.88%
  • App: $0
  • Ongoing: $0 p.a.
$601
An interest-only investment loan for the purchase of an energy-efficient property. Available with a 10% deposit.

Bank Australia Clean Energy Variable Home Loan P&IHome≥ 10% Deposit

Bank Australia Clean Energy Variable Home Loan
2.10%
2.62%
  • App: $0
  • Ongoing: $350 p.a.
$564

Firstmac Green Basic Home Loan P&I≥ 10% Deposit

Firstmac Green Basic Home Loan
2.64%
2.95%
  • App: $0
  • Ongoing: $0 p.a.
$605

Bank Australia Clean Energy Fixed Home Loan P&IHome 3Y Fixed≥ 10% Deposit

Bank Australia Clean Energy Fixed Home Loan
2.70%
2.80%
  • App: $0
  • Ongoing: $350 p.a.
$610

Firstmac Green Basic Home Loan P&I≥ 10% Deposit

Firstmac Green Basic Home Loan
2.44%
2.75%
  • App: $0
  • Ongoing: $0 p.a.
$590
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Green home loans are designed to encourage borrowers to buy, build or improve their homes in an environmentally friendly way. They typically offer discounted interest rates for houses that are energy efficient, and lessen their environmental footprint.

What's the criteria for a "green" home?

Some lenders will reward you with lower interest rates if your house meets a certain criteria that includes:

  • Solar panels
  • Double glazing
  • Water storage tanks
  • An alternative power supply
  • Insulation

Be sure to check with each lender what the criteria is to be eligible for their green home loan.

Which lenders offer green home loans?

Most of the large Australian lenders don't have specific mortgages for green properties, but there are several smaller lenders who do.

Below are some green home loans available at the time of writing.

  • Bank Australia. This customer owned bank now offers a Clean Energy Home Loan in partnership with the Clean Energy Finance Corporation. Bank Australia claims to have been carbon neutral since 2011 and puts some of its profits towards a conservation reserve and other environmental and socially conscious projects.
  • Bendigo Bank Green Home Loan. If you can demonstrate that your building or renovation project is environmentally sustainable you can receive an interest rate discount.
  • CommonwealthBank. They offer a 0.99% interest rate for up to $20,000 worth of renewable technology purchases, such as solar panels or double glazing.
  • Hunter United Green Home Loan. You can qualify for this loan if your home has at least three sustainable features, such as solar power, insulation or a water tank.
  • loans.com.au. The Green Home Loan from loans.com.au offers discounted rates for borrowers who have a property with a 7.0 NatHERS rating.
  • Maleny Credit Union Advantage Plus Home Loan - Special Rate. This small Queensland credit union offers a 0.15% interest rate discount on its Advantage Plus Home Loan if your home satisfies three of its sustainable criteria.
  • Regional Australia Bank Sustainable Home Loan. This is a variable rate mortgage that offers incentives for borrowers pursuing sustainable housing who meet the lender's criteria.

A green discount does not mean the cheapest rate

  • Keep in mind that the discounted rates for green home loans don't necessarily make these products cheaper than other mortgages. If your priority is saving money on repayments with a cheaper mortgage then a green home loan might not be your best option.

Read more on home loans from ethical lenders

What else do I need to know about green home loans?

Pros

  • Reduce your environmental footprint. The most obvious benefit of these loans is that you will be able to contribute to a more sustainable future, reducing your environmental impact.
  • Interest rate discounts. The main draw card of a green home loan is that you are rewarded with lower interest rates in return for your choice to make your house environmentally friendly. But be aware that these interest rates may not
  • Lower bills. By switching to more energy efficient power options, you could potentially save more on your electricity and water bills.

Cons

  • Strict criteria. Most green loans have a very strict and specific criteria your house will have to meet in order to be eligible. The criteria will differ from lender to lender, and the less environmentally friendly tools your house has, the small array of lenders you will have to choose from.
  • Fees and charges. As with any loan, be aware of fees such as redraw facility charges.

Note: The Green Loan Scheme

The Green Loan Scheme was established to encourage Australian residents to reduce their environmental footprint by installing solar panels and other tools in order to reduce water and energy consumption. The scheme has now been abolished by the Australian Government, however, many banks are still encouraging a 'greener' approach through their own special offers and incentives.

Find a mortgage broker to get expert advice on finding a green home loan

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    2 Responses

      Default Gravatar
      DaleJune 22, 2017

      Hi. I am seeking information about the rates for Green Loans for solar panels please.

        Avatarfinder Customer Care
        JhezJune 22, 2017Staff

        Hi Dale,

        Thanks for your comment.

        The available green home loans in our page are Hunter United Green Home Loan with a minimum loan amount of $200,000 and gives borrowers a rate discount, Bendigo Bank Green Home Loan with a minimum loan amount of just $5,000 and has a variable interest rate and Southern Cross Credit Union Green Home Loan which can offer you a 0.7% discount off the standard variable rate if your home can achieve a 7 star or above rating according to the Naitionwide House Energy Rating Scheme SCU.

        Hope this information has helped you.

        Regards,
        Jhezelyn

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