The new product is variable and is available on loan amounts from $3,000 to $50,000 on owner occupied home loans paying principal and interest (P&I).
The Green Home Loan offering from RACQ Bank comes with a comparison rate of 0.79% p.a.
RACQ banking group executive Michelle Winzer said a recent RACQ survey found 75% of Queenslanders had made efforts to reduce electricity consumption and 44% were interested in a specific loan to make sustainable improvements to their home.
"We’ve introduced a green home loan to help RACQ Bank mortgage holders purchase and install clean energy products in their homes," Ms Winzer said.
"The green home loan can be used to purchase solar panels, battery packs, solar or heat pump hot water systems and electric vehicle charging stations and at a low 0.79% p.a making sustainability more affordable."
All green home improvements made using RACQ Bank’s Green Home Loan are to be sourced from Clean Energy Council (CEC) approved suppliers and installers.
"By using accredited retailers and installers, it helps ensure our members are charged a fair price for a quality product," Ms Winzer said.
"A CEC approved retailer provides a five year whole-of-system warranty so if you have an issue, the retailer will take care of any warranty issues on behalf of the customer."
At 0.79% p.a. RACQ Bank's new product is competitive among other green home loans, including offers from CommBank and homeloans.com.au.
Who can apply for an RACQ Bank Green Home Loan?
- Available for members with an RACQ Bank Home Loan - either new purchase, existing, or refinanced.
- Available for the home with the eligible RACQ Bank Home Loan.
- Available for principal and interest, owner-occupied RACQ Bank Home Loans.
- Home loans must have a minimum loan balance of $250,000.
RACQ Bank notes the Green Home Loan product will be available for investors at a later date.
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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Fixed | $0 | $0 | 60% |
| Promoted | Disclosure | ||||||||||
5.93% p.a. | 5.93% p.a. | $2,975 | Principal & Interest | Variable | $0 | $395 | 70% | Disclosure |
