The Finder Score crunches 7,000 home loans across 120+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
To provide a Score, we compare like-for-like loans. So if you're comparing the best home loans for cashback, you can see how each home loan stacks up against other home loans with the same borrower type, rate type and repayment type. We also take into consideration the amount of cashback offered when calculating the Score so you can tell if it's really worth it.
Read the full Finder Score breakdown
Green home loans offer discounted rates for environmentally friendly properties. They're like any other home loan, except they have different eligibility criteria. You can use a green home loan to buy a home to live in or an investment property - you just need to make sure the property is considered "green".
In practice, this means the home must meet some form of sustainability criteria or a specified energy efficiency criteria. For most lenders, this means having a natHERS rating of at least 7. You could also be eligible if you are adding green improvements to your home. (We go into more of the specific criteria for different lenders further down.)
Examples of features that make your home greener include:
Be sure to check with each lender what the criteria is to be eligible for their green home loan.
Here's what other Australians are doing according to Finder's research:
Note that some lenders may not offer specific green home loans but may have other "green loans" that can fund home renovations to make your home greener. These are essentially a form of personal loan.
"The discounted rates offered for green home loans can still be higher than the cheapest loans out there. The discounts often come off the higher rate products or package loans. Be sure to compare the wider range of home loan options to make sure you're really saving money."
Green home loans aren't something that a lot of lenders offer, but here are some that do:
| Lender | Criteria |
|---|---|
| Bank Australia | This customer owned bank offers different rates depending on the type of home. Currently, you can secure a rate discount if you are buying or building a 7+ star-rated home. Note: this criteria is changing in late-2024: your home will need to be all-electric, have a natHERS rating of at least 7.5 and have an eligible solar system. |
| Commonwealth Bank | This big four bank offers a green home loan for anyone building, buying or renovating a sustainable, energy efficient home. |
| NAB | offers lower variable rates for home loan customers with energy efficient homes. They must be owner occupiers with a deposit of 20% or less to benefit from a discount of up to 1.00% p.a. on their home loan. |
| 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. Your property must be less than 12 months old. |
| Firstmac | Whether you're buying or building, if your property has a NatHERS rating of at least 7 stars you could get an interest rate discount of 1.05% for 5 years. Firstmac also offers a specific Solar Home Loan for a discounted rate if you have or are working towards getting solar panels. |
| Gateway Bank | If your property has environmentally-friendly features with a Residential Efficiency Scorecard between 4 stars at 6.9 stars, or you're planning renovations to add environmentally-friendly features, or planning to build a new eco-build, you could benefit from a 0.15% rate discount from Gateway Bank's Premium Package Variable Rate home loan. |
| RACQ | If you are in Queensland and hold an RACQ home loan, you can add on another loan to cover the cost of adding features like solar panels, battery packs, a heat pump or solar hot water system, or an electric vehicle charging port. |
Read more on home loans from ethical lenders
You can apply for a green home loan the same way that you would apply for any home loan, but you would need additional evidence to prove that your home meets the criteria.
1. Check rates and features. Although rates are discounted with green home loans, this is often a discount off of a higher rate (like through a package loan). So if you've found a green home loan you're interested in, check that it would actually save you money and still provide all the useful home loan features you're after.
2. Apply online or in a branch. Most green home loan lenders are online only, but there are some in-person options too. The application process will ask you for information like your personal details, income and loan amount.
3. Provide evidence. You'll need to provide the usual identification verification and financial evidence. But for a green home loan you will also need to show how your home is eligible. This depends on the loan and the criteria, but examples of what you may need to provide include:
4. Wait for approval!
If you have a green home, there's more to think about than just your home loan!
Compare all home loans:
Compare green home loan rates with standard rates to make sure you are getting a better deal.
Personal loans for your green needs:
Have a home loan but want some extra funds to make your home more green?
Solar power plans:
Have rooftop solar? Compare your energy options and save even more.
Building your new green home?:
Compare constructions loans to calculate the difference.
Get more information about living a greener life with Finder Green
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Hi. I am seeking information about the rates for Green Loans for solar panels please.
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