More homeowners want green loans if the price is right

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on March 24, 2022 Fact Checked
More homeowners want green loans if the price is right

New research from Gateway Bank found that 49% of Aussies would consider a green home loan at the right price.

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

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 1.79% 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 1.79% 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

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 May 26, 2022. View disclaimer.


Image by Jeremy Bezanger on Unsplash

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author-avatar
Rachel is a Finance Journalist, and joined Savings in 2021. Coming from a background in the FinTech space, her interests include the innovation of lending technology, property, investing, and more. With a passion for educating and informing people about their finances, she hopes to increase the financial literacy of everyday Australians.

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