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.
Firstmac – Green Offset Home Loan 90 (Interest Only)
Regional Australia Bank – Sustainable Home Loan (Principal and Interest)
- Immediate cashback upon settlement
- $2000 for loans up to $700,000
- $4000 for loans over $700,000
Photo by Jarek Ceborski on Unsplash
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