Lenders ramp up competition in green finance space

Lenders ramp up competition in green finance space

Online lender loans.com.au slashed its green home loan rates by 20 basis points, while Bendigo Bank cut its green personal loan by a massive 480 basis points.

loans.com.au cut the whole range of its green loans by 20 basis points:

  • Green Construction Loan: Now 1.88% p.a. (2.33% p.a. comparison rate*)
  • Green Home Loan P&I Variable: Now 1.88% p.a. (2.30% p.a. comparison rate*)
  • Green Inv Construction Loan: Now 2.39% p.a. (2.84% p.a. comparison rate*)

    To qualify for a green loan, borrowers must have their home qualify under the 'NatHERS' rating system and achieve a rating of at least 7/10.

    This rating encompasses the home's design, construction materials, and the climate where it has been built.

    loans.com.au managing director Marie Mortimer said these are the lowest green home loan rates in the country.

    "Our green home loan and green construction loan discounts will save Australian families thousands of dollars and reward them for choosing to build or buy a more environmentally friendly energy-efficient home," Ms Mortimer said.

    "Borrowers simply need to show us the home’s 7-star NatHERS rating from an accredited assessor, which is typically always included in the building plan for all new buildings, and the application will go through our usual approval process.

    "The savings you get on your home loan by choosing to go green could easily cover any costs of opting for an environmentally friendly home."

    An example of some of the green home loans for owner occupiers are seen in the 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 1.59% 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 1.59% 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

    Eco Home Loan (New Customer) (LVR < 60%)

    • 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 June 29, 2022. View disclaimer.

    Bendigo Bank slashes green personal loan rates

    Bendigo Bank cut rates on both unsecured and secured personal loans.

    Unsecured green loans were cut by 480 basis points, or 4.8%, and are designed for purchasing solar panels, grey water treatment systems, solar batteries and so on.

    The unsecured rate is now 6.99% p.a. (8.01% p.a. comparison rate*).

    Meanwhile, the secured rate was cut by 180 basis points, or 1.8%, and is designed for the purchase of a 'green' vehicle emitting less than 130g of CO2 per kilometre.

    The secured rate is now 4.99% p.a. (5.35% p.a. comparison rate*).

    Loan terms are available anywhere from one to seven years.

    In the interest of full disclosure, loans.com.au and Savings.com.au are both associates of Firstmac.


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    In the market for a new car? The table below features green car loans with some of the lowest interest rates on the market for low-emissions vehicles.

    Lender

    VariableNew1 yearMore details
    APPLY ONLINE
    APPLY ONLINE

    Electric and Hybrid Car Loan

      FixedNew2 yearsMore details
      QUICK APPLICATION PROCESS WITH NO FEES
      • Quick application process and no monthly fees
      • Low fixed interest rates with terms of up to seven years
      • New car loans cover cars up to 3 years old
      QUICK APPLICATION PROCESS WITH NO FEES

      New Vehicle Fast Loan Low Rate

      • Quick application process and no monthly fees
      • Low fixed interest rates with terms of up to seven years
      • New car loans cover cars up to 3 years old
      FixedNew, Used5 yearsMore details
      • Quick application process and no monthly fees
      • Low fixed interest rates with terms of up to seven years
      • New car loans cover cars up to 3 years old

      Fixed Car Loan (with Low Emission Vehicle discount)

      • Quick application process and no monthly fees
      • Low fixed interest rates with terms of up to seven years
      • New car loans cover cars up to 3 years old

      *Comparison rates based on a loan of $30,000 for a five-year loan term. 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 June 29, 2022. View disclaimer.


      Photo by ulleo on Pixabay

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