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.

  • 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.
  • Bank Australia. While this customer owned bank doesn't offer a specific green mortgage product the entire company is committed to sustainable, environmentally-conscious investments. 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.

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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Rates last updated November 18th, 2019
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Loan purpose
Offset account
Loan type
Repayment type
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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.03%
3.04%
$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.
2.84%
2.84%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
2.88%
2.90%
$0
$0 p.a.
80%
Get one of the lowest variable interest rates on the market and pay 0 application or ongoing fees.
2.89%
2.93%
$600
$10 monthly ($120 p.a.)
80%
A competitive variable rate for home buyers with a 20% deposit. This product has a 100% offset account.
2.89%
3.31%
$0
$10 monthly ($120 p.a.)
80%
Buy your home and lock in a low rate for the first two years. Available with a 10% deposit. Earn Velocity Frequent Flyer Points at settlement, monthly and every three years, plus extra bonus points for a limited time.
3.18%
3.24%
$449
$0 p.a.
90%
NSW and ACT customers only. You can get an interest rate discount for a limited time with this competitive variable mortgage.
2.77%
2.78%
$0
$0 p.a.
80%
A very competitive variable rate mortgage for home buyers with a 20% deposit saved. Add an optional 100% offset account for a $10 monthly fee.
2.79%
3.82%
$0
$0 p.a.
90%
Get one of the lowest rates on the market with this fixed rate mortgage. Available with just a 10% deposit. Guarantor option available. NSW, QLD and ACT residents only.
2.84%
3.42%
$449
$6 monthly ($72 p.a.)
90%
NSW and ACT customers only. 2 years fixed interest terms and free access to redraw facility online.
3.19%
3.21%
$0
$0 p.a.
80%
A competitive variable investor rate for borrowers with 20% deposits. Low fees, redraw facilities and repayment flexibility.
2.95%
2.99%
$500
$0 p.a.
95%
This mortgage combines a very sharp interest rate with a 100% offset account and it's available with a 5% deposit.
3.09%
3.09%
$0
$0 p.a.
80%
This low variable rate loan comes with a free redraw account and no ongoing fees, as well as flexible repayments.
3.19%
3.23%
$595
$0 p.a.
90%
A discounted variable rate with low ongoing fees and redraw facility. Low deposit option available.
2.79%
2.83%
$600
$10 monthly ($120 p.a.)
70%
A very low variable interest rate for home buyers with a 30% deposit. This product has a 100% offset account.
3.03%
3.06%
$0
$0 p.a.
80%
This low, variable rate loan has no ongoing fees and a redraw facility. Requires a 20% deposit.
3.09%
3.09%
$0
$0 p.a.
70%
A simple mortgage with no application or ongoing fees that has extra repayments plus split and redraw options. Requires a 30% deposit.
2.69%
3.19%
$395
$0 p.a.
80%
A competitive fixed interest rate product with no ongoing bank fees.
3.18%
3.32%
$0
$10 monthly ($120 p.a.)
80%
This flexible, competitive variable rate mortgage comes with a redraw facility. Eligible borrowers can earn Velocity Frequent Flyer Points, plus extra bonus points for a limited time.
3.31%
3.32%
$500 (if over 80% LVR)
$0 p.a.
80%
A competitive variable mortgage for home buyers. This loan has flexible repayments and an optional redraw facility.
3.08%
3.42%
$0
$299 p.a.
80%
Get a 100% offset account and a competitive, variable interest rate, plus no application fee.
2.79%
4.14%
$0
$400 p.a.
95%
$1,000 cashback when borrowing $250,000 or more. Conditions apply. Variable rate mortgage with a 100% offset account. Available with a low deposit. Southern Cross Credit Union home loans are only available to borrowers in Southeast Queensland and Northern NSW.
3.19%
3.19%
$0
$0 p.a.
80%
Pay no application and ongoing fees and take advantage of split and redraw options.
3.09%
4.63%
$500
$0 p.a.
95%
Home buyers can lock in their rate for two years while still enjoying flexible repayment options. Available with a 5% deposit.
3.24%
3.24%
$0
$0 p.a.
80%
Get a discounted, low-fee investor loan from a convenient online lender. 20% deposit required.
2.89%
3.29%
$0
$10 monthly ($120 p.a.)
80%
A competitive fixed rate mortgage available with a 10% deposit. Earn Velocity Frequent Flyer Points at settlement, monthly and every three years, plus extra bonus points for a limited time.
3.29%
4.70%
$500
$8 p.a.
95%
A flexible fixed rate loan for property investors. Borrow up to 95%.
3.24%
4.14%
$600
$395 p.a.
95%
A package loan that offers discounts and a 100% offset account.
3.15%
3.56%
$0
$395 p.a.
80%
A low rate variable mortgage for home buyers. Comes with a 100% offset account and has no application fee.
3.20%
3.25%
$600
$0 p.a.
90%
Competitive variable rate mortgage with a partial offset account. Get this loan with a 10% deposit.
3.54%
4.44%
$600
$395 p.a.
95%
A package loan that offers discounts and a 100% offset account.
2.74%
3.38%
$395
$0 p.a.
80%
Fix your mortgage for 1 year with a very competitive rate and no ongoing fees.
3.49%
3.96%
$449
$6 monthly ($72 p.a.)
90%
NSW and ACT customers only. A 3 years fixed rate investor which allows extra repayments to be made.
3.19%
3.59%
$0
$395 p.a.
90%
New borrowers or refinancers can get a discounted rate with this package loan.
3.65%
3.66%
$500 (if over 80% LVR)
$0 p.a.
80%
A variable investment mortgage with flexible repayments and an optional redraw facility.
3.74%
3.76%
$0
$10 monthly ($120 p.a.)
80%
A variable rate home loan with no application fees and the opportunity to earn Velocity points.
3.59%
3.37%
$375
$15 monthly ($180 p.a.)
80%
Home buyers with a 20% deposit can get this low interest-only rate. It also comes with a 100% offset account.
2.84%
3.59%
$395
$0 p.a.
80%
Pay no ongoing fees on this investment loan fixed for 3 years.
3.84%
4.16%
$0
$299 p.a.
80%
Get a 100% offset account, access to a redraw facility and a competitive rate tied to your LVR.

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Logo for UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000
UBank UHomeLoan Variable Rate - Discount offer for Owner Occupiers, P&I Borrowing over $200,000

Take advantage of a low-fee mortgage with a special interest rate of just 2.84% p.a. and a 2.84% p.a. comparison rate.

Logo for Athena Variable Home Loan - Refinance (Owner Occupier, P&I)
Athena Variable Home Loan - Refinance (Owner Occupier, P&I)

Owner occupiers looking to refinance can get one of the lowest rates in the market with this variable rate mortgage. $0 application fee and $0 ongoing fees. Refinancers only.

Logo for Virgin Reward Me Fixed Rate Home Loan - 2 Year $300k+ Special offer (Owner Occupier, P&I)
Virgin Reward Me Fixed Rate Home Loan - 2 Year $300k+ Special offer (Owner Occupier, P&I)

Buy your home and lock in a low rate for the first two years. Available with a 10% deposit. Earn Velocity Frequent Flyer Points at settlement, monthly and every three years, plus extra bonus points for a limited time.

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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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