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Green home loans

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

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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 you need to be eligible for their green home loan.

Which lenders offer green home loans?

Most 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.
  • 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.
  • 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.
  • Hunter United Green Home Loan. You can qualify for this loan if your home has at least three sustainable features, such as solar power, double glazing or a water tank.
  • 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 sustainable 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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Credit services for Aussie Select, Aussie Activate and Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 (“Aussie”) and its appointed credit representatives, Australian Credit Licence 246786. Credit for Aussie Select products is provided by Residential Mortgage Group Pty Ltd ACN 152 378 133, Australian Credit Licence 414133 (“RMG”). RMG is a wholly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945. Credit for Aussie Activate products is provided by Pepper Finance Corporation Limited ACN 094 317 647 (“Pepper”). Pepper Group Limited ACN 094 317 665, Australian Credit Licence 286655 acts on behalf of Pepper. Credit services for Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 Australian Credit Licence 246786 (“Aussie”) and its appointed credit representatives. Aussie is a trade mark of AHL Investments Pty Ltd ABN 27 105 265 861. Credit and any applicable offset accounts for Aussie Elevate are issued by Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL / Australian Credit Licence 237879.

Aussie is a trade mark of AHL Investments Pty Ltd. Aussie is a subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124. ©2019 AHL Investments Pty Ltd ABN 27 105 265 861 Australian Credit Licence 246786.

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Rates last updated March 30th, 2020
$
Loan purpose
Offset account
Loan type
Repayment type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000 (*now 2.84%, drops to 2.59% on 3 April)
2.59%
2.59%
$0
$0 p.a.
80%
This rate will drop to 2.59% p.a on 3 April 2020 for new and existing customers. Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
HSBC Home Value Loan - Promotional Offer (Owner Occupier P&I)
2.65%
2.66%
$0
$0 p.a.
80%
Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online.
Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR<=90% Incl. LMI (Owner Occupier, P&I)
2.78%
2.79%
$0
$0 p.a.
90%
Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000.
Virgin Reward Me Variable Home Loan - LVR <= 80% ($500k to $750k Owner Occupier, P&I)
3.12%
3.28%
$300
$10 monthly ($120 p.a.)
80%
This flexible, competitive variable rate mortgage comes with a 100% offset account and redraw facility.
ING Mortgage Simplifier Home Loan - $150,000 to $500,000 (LVR <=80% Owner Occupier, P&I)
2.78%
2.81%
$0
$0 p.a.
80%
This low, variable rate loan has no ongoing fees and a redraw facility. Requires a 20% deposit.
Heritage Bank Discount Variable Home Loan - LVR <=80% (Owner Occupier, P&I) New Customers Only
2.87%
2.89%
$600
$0 p.a.
80%
Family guarantee option available. Enjoy flexible repayments and a low minimum loan amount. $0 application fee for eligible borrowers (limited time only, terms and conditions apply).
ANZ Simplicity PLUS Home Loan - LVR ≤ 80% Special Offer Discount (Owner Occupier, PI)
2.72%
2.76%
$0
$0 p.a.
80%
Get a low variable rate from a ANZ and save money with $0 application or ongoing fees. Requires a 20% deposit. Refinance to this loan and you could get a cashback from $1,200 up to $3,500 depending on your loan amount (terms and conditions apply).
Heritage Bank Advantage Package - 1 Year Fixed (Owner Occupier, P&I) New Customers Only
2.89%
3.42%
$0
$350 p.a.
90%
Get a partial offset account and flexible repayments with this package loan.
UBank UHomeLoan - 1 Year Fixed Rate (Owner Occupier, P&I)
2.74%
3.38%
$395
$0 p.a.
80%
Fix your mortgage for 1 year with a very competitive rate and no ongoing fees.
Macquarie Bank Basic Home Loan - LVR ≤ 80% (Owner Occupier, P&I)
2.94%
2.94%
$0
$0 p.a.
80%
Pay no application and ongoing fees and take advantage of split and redraw options.
Gateway Bank Low Rate Essentials Variable Rate Home Loan - Special offer LVR up to 80% and over $500k (Owner Occupier, P&I)
2.76%
2.79%
$0
$0 p.a.
80%
A competitive, flexible variable rate mortgage for home buyers borrowing above $500,000. Eligible new home buyers with low deposits can apply for the First Home Loan Deposit Scheme with this lender and avoid LMI costs.
Virgin Reward Me Fixed Rate Home Loan - 2 Year $300k+ Special offer (Owner Occupier, P&I)
2.79%
3.25%
$300
$10 monthly ($120 p.a.)
80%
Buy your home and lock in a low rate for the first two years.
UBank UHomeLoan - 3 Year Fixed Rate (Owner Occupier, P&I)
2.69%
3.19%
$395
$0 p.a.
80%
A competitive fixed interest rate loan with no ongoing fees. Requires a 20% deposit.
Virgin Reward Me Fixed Rate Home Loan - 3 Year $300k+ Special offer (Owner Occupier, P&I)
2.79%
3.22%
$300
$10 monthly ($120 p.a.)
80%
A competitive fixed rate mortgage available with a 10% deposit.
UBank UHomeLoan Variable Rate - Discount Offer for Investor Variable P&I Rate
3.24%
3.24%
$0
$0 p.a.
80%
Get a discounted, low-fee investor loan from a convenient online lender. 20% deposit required.
Gateway Bank Low Rate Essentials Variable Rate Home Loan - Special offer LVR up to 80% and over $500k (Investor, P&I)
3.04%
3.07%
$0
$0 p.a.
80%
Investors with 20% deposits can get this flexible variable mortgage with low fees and a reasonable rate.
Virgin Reward Me Variable Home Loan - LVR <=80% ($500k to $750k Owner Occupier, IO)
3.74%
3.78%
$300
$10 monthly ($120 p.a.)
80%
A variable rate home loan with no application fees.
UBank UHomeLoan - 3 Year Fixed Rate (Investor, P&I)
2.84%
3.59%
$395
$0 p.a.
80%
Pay no ongoing fees on this investment loan fixed for 3 years.

Compare up to 4 providers

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Home Loan Offers

Important Information*
Logo for UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000 (*now 2.84%, drops to 2.59% on 3 April)
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000 (*now 2.84%, drops to 2.59% on 3 April)

Take advantage of a low-fee mortgage with a special interest rate of just 2.59% p.a. and a 2.59% p.a. comparison rate.

Logo for HSBC Home Value Loan - Promotional Offer (Owner Occupier P&I)
HSBC Home Value Loan - Promotional Offer (Owner Occupier P&I)

Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online.

Logo for Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR<=90% Incl. LMI (Owner Occupier, P&I)
Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR<=90% Incl. LMI (Owner Occupier, P&I)

Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000.

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2 Responses

  1. 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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