Is this Australia's lowest green home loan interest rate?

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on October 26, 2021
Is this Australia's lowest green home loan interest rate?

On Tuesday Gateway Bank dropped interest rates on its green home loans, putting them among the lowest-rate loans in Australia.

Gateway Bank's variable 'Green Plus' and 'Green' home loans were dropped by 45 basis points:

  • Green Plus: Now 1.89% p.a. (2.24% p.a. comparison rate*)
  • Green: Now 1.99% p.a. (2.34% p.a. comparison rate*)

These are loans for owner occupiers paying principal & interest (P&I) with a minimum 20% deposit (80% LVR), and are for energy efficient homes.

To qualify for the 'Green Plus' rate, the home must have a 7-star or higher 'NatHERS' rating or Residential Efficiency Scorecard.

Qualifying for the 'Green' rate is slightly less onerous, requiring the home to have a minimum four-star Residential Efficiency Scorecard rating.

It's also open to those making energy efficient enhancements, with the minimum Scorecard required within 12 months of the loan funding date.

The home loans also come with a cashback offer of $2,000 until 31 December, which Gateway CEO Lexi Airey says makes the products some of the most competitive in the market.

"Gateway is looking to be even more competitive in the home loan space, especially for green home loans," Ms Airey said.

"With the upcoming COP 26 and recent IPCC report focusing attention on the need to reach net zero, we want to make it as economical as possible for Aussies to build or retrofit their homes to be energy efficient.

"We don’t believe you should have to pay more for doing the right thing with your home."

Gateway Bank also cut interest rates on a range of other owner occupier loans by between 26 and 47 basis points.

Green home loans have been growing in popularity, with a number of lenders offering competitive products and special discounts, mostly for home construction - Gateway Bank initially launched its green home loan offers in May.

Some green loans are featured in the comparison table below.

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
GET A DISCOUNTED GREEN RATE*

Green Home Loan (Principal and Interest)

  • Fast turnaround, can meet a 30-day settlement
  • Save thousands & make an environmentally conscious choice on your loan for homes less than 12 months old
GET A DISCOUNTED GREEN RATE*

Green Home Loan (Principal and Interest)

  • Fast turnaround, can meet a 30-day settlement
  • Save thousands & make an environmentally conscious choice on your loan for homes less than 12 months old
VariableMore details
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
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

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 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. Rates correct as of November 27, 2021. View disclaimer.


Photo by Jarek Ceborski on 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 click through onto the web site links.

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author-avatar
Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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