The 2022-2025 Housing Outlook commissioned by QBE Lenders Mortgage Insurance has revealed that consumers are prioritising and being rewarded for making greener housing decisions. 

Effective insulation and better lighting are among the most popular installed energy saving initiatives, while solar panels, lighter-coloured roofs, double glazed windows, and solar hot water systems also play a major role.

QBE LMI General Manager Pat Priest said increasing home energy is one of the best ways for consumers to future-proof their biggest assets.

“An energy efficient home uses 66% less electricity, 51% less water and produces 62% fewer greenhouse gas emissions,” Ms Priest said.

“Just by installing a 5kW rooftop solar system, the average Australian household could save $909 per year on their electricity bills." 

Homeowners are also opting for efficient white goods and appliances such as dishwashers and washing machines. 

Besides reducing usage costs, solar panels can also give homeowners feed-in tariff credits giving households savings on their energy bill whenever they contribute power back to the grid.

Electricity prices are tipped to grow a further 35% in 2023, with the Federal Treasurer warning this factor will be the most problematic aspect of inflation over the next six or nine months.

How do green home loans come into the equation? 

If a home is energy efficient and sustainable, a lender may reward the borrower with a green home loan that offers discounted or competitive interest rates.

However, this is only possible if the home qualifies for a certain star-level or certification under the Nationwide House Energy Rating Scheme (NatHERS).

“Making it more affordable to own a green home is a key enabler for consumers to switch over to energy efficient choices,” Ms Priest said. 

“This is why QBE LMI has just launched a 5% rate reduction for LMI to benefit customers seeking to buy, build or renovate into a green home.

“Customers who secure a green mortgage through our current participating exclusive partners NAB or Bank Australia may be eligible to benefit from the rate reduction, helping to get them into a green home sooner.”

See Also: NAB launches home loan discounts for energy efficient homes

The easy ‘green’ changes you can make to your home

According to the QBE report, there are a number of changes you can make to green proof our home:

  • Purchase updated white goods and appliances: Look for models that have a high energy star label.
  • Install solar panels: Extremely sought-after by homebuyers as the savings on electric costs can be high.
  • Convert to LED light bulbs: The report notes that LED bulbs use 75% less energy than traditional halogen bulbs and also last five to 10 times longer.
  • Paint your roof a lighter colour: A lighter roof will keep your home cooler as it reflects the sunlight and heat so you won’t need to use your aircon constantly.
  • Double glaze your windows: Double glazed windows can reduce the amount of heat transmitted through a window, thus removing the need for constant temperature control e.g. turning your air conditioner on to cool the house down.  
  • Redo the insulation: The report found effectively insulating the ceiling, walls, and floors of a typical home saves 45-55% on heating and cooling.


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


VariableMore details
90% LVR
  • You MUST already have Solar or a documented plan to install within 90 days to be eligible for this loan
  • Available for refinance or purchase
  • No monthly, annual or ongoing fees
90% LVR – Solar Investor Loan (Principal & Interest) (LVR < 90%)

  • You MUST already have Solar or a documented plan to install within 90 days to be eligible for this loan
  • Available for refinance or purchase
  • No monthly, annual or ongoing fees
FixedMore details

Bank Australia – Clean Energy Home Loan Package - Eco Plus Fixed 3 Years (Principal & Interest) (LVR < 90%)

    VariableMore details

    Gateway Bank – Green Plus Home Loan (Principal and Interest) (LVR < 80%)

      VariableMore details

      Summerland Bank – Eco Investment Loan (New Customer) (LVR < 60%)

        VariableMore details

        Gateway Bank – Green Plus Investment Loan (Principal and Interest) (LVR < 80%)

          VariableMore details

          Regional Australia Bank – Sustainable Home Loan (Principal and Interest)

            VariableMore details

            Firstmac – Solar Investment Loan (Principal and Interest) (LVR < 90%)

              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 December 12, 2023. View disclaimer.

              Image by Vivint Solar Via Pexels

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