According to the new survey, there is a growing interest in green home loans, but many people hold a perception that they are more expensive and difficult to qualify for.

Out of the 1,000 people surveyed, 34% said that one of the most attractive feature of a green home loan is its exclusivity - particularly among younger borrowers.

Two thirds (66%) said they would consider installing environmentally friendly features required by a green home loan if it was easy and the products were cost-effective.

Features that can be installed in a green home include solar panels, insulation and/or double glazed windows to increase the home's efficiency and, ultimately, save money on energy bills.

Gateway Bank initially launched two green home loan products in May 2021 - dropping interest rates on both by 45 basis points later that year - to be "even more competitive" in the green home loan space.

Other lenders such as Commonwealth Bank, Suncorp, homeloans.com.au, and Firstmac all launched green home loans last year.

This year, RACQ Bank joined the bandwagon and launched its own green home loan for amounts from $3,000 to $50,000. 

Most banks and lenders have referenced an increased focus on environmental sustainability when announcing new green home loans.

For context, Australia had a record-year for solar panel installations in 2021 with an estimated 380,000 rooftop solar installations taking place.

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Some green home loans are featured in the comparison table below

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.43% p.a.
6.68% p.a.
$2,143
Interest-only
Variable
$0
$530
90%
  • Interest Only during construction
  • No monthly, annual or ongoing fees
  • Get Australia’s lowest rate construction loan when you go green
6.69% p.a.
7.02% p.a.
$2,380
Interest-only
Variable
$0
$500
90%
6.64% p.a.
6.67% p.a.
$2,565
Principal & Interest
Variable
$0
$250
95%
  • Immediate cashback upon settlement
  • $2,000 for loans up to $700,000
  • $4,000 for loans over $700,000

More details
Important Information and Comparison Rate Warning

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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 . View disclaimer.

Image by Jeremy Bezanger on Unsplash



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