Bank Australia increases discounts for green home loans

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on June 06, 2022 Fact Checked
Bank Australia increases discounts for green home loans

Bank Australia will offer a 30 basis point discount (0.30% p.a.) off its home loans if customers have an energy efficient home.

Bank Australia's Eco Plus Clean Energy Home Loan has increased incentives for new homes that have a Nationwide House Energy Rating Scheme (NatHERS) rating of 7.5 stars or higher plus a solar system.

Backed by an investment of $30 million from the Clean Energy Finance Corporation (CEFC), new homes may be eligible for a discount of 0.30% p.a. for up to five years on their home loan interest rate.

The mutual bank offers three different ways to access their Clean Energy Home Loan product, in the form of 'Eco', 'Eco Upgrade' and 'Eco Plus'.

Eco and Eco Upgrade products are eligible for a 0.20% p.a. discount, with the Eco Plus product eligible for the increased 0.30% p.a. discount depending on eligibility criteria.

Customers can qualify for the Eco Plus Clean Energy Home Loan by achieving a NatHERS rating of 7.5 stars with the addition of solar panels or by using the new Green Star Homes certification from the Green Building Council of Australia.

The Eco Plus Clean Energy Home Loan product for customers with a maximum loan-to-value ratio (LVR) of 90% offers a variable rate of 2.15% p.a. (2.73% p.a. comparison rate*).

Clean Energy Finance Corporation CEO Ian Learmonth said the organisation is pleased to continue working with Bank Australia to provide Australians with added incentives to choose greener options for their homes.

"Building homes that have strong energy efficiency measures today creates more resilient cities and regions for the future," Mr Learmonth said.

"At the same time, incentivising new home buyers and builders to adopt stronger sustainability design standards is an important step in reducing our carbon footprint as we transition towards net zero emissions."

Last week, Suncorp announced the introduction of a 'Green Upgrades' home loan launching at the end of June to help Aussies save money on electricity bills while making a positive difference for the environment.


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Building or buying an energy-efficient home? This table shows some of the lowest interest rates in the market for 'green' home loans.

Lender

Variable
More details
GET A DISCOUNTED GREEN RATE*
  • Low rate home loan with added benefits, add offset for 0.10%
  • Save thousands & make an environmentally conscious choice on your loan for homes less than 12 months old
  • Get a 7.0 star NatHERS rating or higher for up to 1.59% discount on your variable rate home loan T&Cs apply
GET A DISCOUNTED GREEN RATE*

Green Home Loan (Principal and Interest)

  • Low rate home loan with added benefits, add offset for 0.10%
  • Save thousands & make an environmentally conscious choice on your loan for homes less than 12 months old
  • Get a 7.0 star NatHERS rating or higher for up to 1.59% discount on your variable rate home loan T&Cs apply
Variable
More details
GET A DISCOUNTED GREEN RATE
  • Interest Only during construction
  • No monthly, annual or ongoing fees
  • Get Australia’s lowest rate construction loan when you go green
GET A DISCOUNTED GREEN RATE

Green Construction Home Loan (Interest Only)

  • Interest Only during construction
  • No monthly, annual or ongoing fees
  • Get Australia’s lowest rate construction loan when you go green
Variable
More details
  • Interest Only during construction
  • No monthly, annual or ongoing fees
  • Get Australia’s lowest rate construction loan when you go green

Eco Home Loan (New Customer) (LVR < 60%)

  • Interest Only during construction
  • No monthly, annual or ongoing fees
  • Get Australia’s lowest rate construction loan when you go green
Variable
More details
  • Interest Only during construction
  • No monthly, annual or ongoing fees
  • Get Australia’s lowest rate construction loan when you go green

Green Home Loan (Principal and Interest) (LVR < 80%)

  • Interest Only during construction
  • No monthly, annual or ongoing fees
  • Get Australia’s lowest rate construction loan when you go green
Variable
More details
  • Interest Only during construction
  • No monthly, annual or ongoing fees
  • Get Australia’s lowest rate construction loan when you go green

Green Offset Home Loan 90 (Interest Only) (LVR < 90%)

  • Interest Only during construction
  • No monthly, annual or ongoing fees
  • Get Australia’s lowest rate construction loan when you go green
Variable
More details
  • Interest Only during construction
  • No monthly, annual or ongoing fees
  • Get Australia’s lowest rate construction loan when you go green

Sustainable Home Loan (Principal and Interest)

  • Interest Only during construction
  • No monthly, annual or ongoing fees
  • Get Australia’s lowest rate construction loan when you go green

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of June 29, 2022. View disclaimer.


Image by Wynand van Poortvliet via Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.

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