Finty

Compare green home loans

Enter your loan and deposit to see the rate and repayment you'd get on 12 green home loans, and how much a lower rate could take off your repayments.

Discounted rates for energy-efficient homes or for adding solar, batteries and other upgrades. Each lender sets its own rules on what qualifies.

Written byDavid Boyd

What would your repayments be?

Enter your loan and deposit, and we'll find each lender's rate for you and work out the monthly repayment over 30 years.

5 loans

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Each loan shows its lowest published variable rate for your choices and deposit. Repayments are over 30 yearsand include any monthly fee. Fixed repayments are worked out as if the fixed rate ran for the whole loan. The rate you're offered depends on your circumstances. Comparison rates are for the lender's example loan of $150,000 over 25 years.

WARNING: A comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Green home loans at a glance

Worked out from the 12 loans from 4 lenders we compare on this page.

Typical variable rate

6.09%

Across the 5 loans for a home you live in, with a 20% deposit. Half sit between 4.74% and 6.10%.

With an offset account

6 of 12

8 loans let you redraw extra repayments.

Typical upfront fees

$0

8 of 10 loans charge none.

No annual fee

0 of 6

loans that state an annual fee set it at $0.

How variable rates are spreadNumber of loans in each band. The most common is 6–6.5%.

The short version

  • Green home loans offer lower rates on energy efficient homes or upgrades.
  • Lenders use energy ratings like NatHERS, or a list of approved upgrades.
  • Check your state's rebates for solar and batteries too.

What green home loans cover

A lower rate for homes with a high energy rating, or a loan to add solar panels, batteries, heat pumps and other upgrades. Each lender sets its own rules on what qualifies, such as a new home's energy star rating or a list of eligible upgrades.

Check the rate after any discount ends, and look for state rebates and interest-free loans for solar and batteries too.

Pros

  • A lower rate than the lender's standard loan.
  • Lower power bills from an efficient home.
  • Some loans cover upgrades like solar and batteries at the same rate.

Cons

  • Only for homes or upgrades that meet the lender's rules.
  • The discount may be small or time limited.
  • Few lenders offer them, so compare with standard loans too.

Alternatives

  • A green personal loan, for upgrades on your current home.
  • Government rebates and interest free state loans for solar and batteries.
  • Refinancing your current loan, if you already own a home. A lower rate on your existing loan can save more than a new product.

How to apply

Most people get pre-approval for a green home loan before they start making offers, then the full approval once they've found a home.

  • Get your documents together. Payslips, two years of tax returns if you're self-employed, bank statements showing your savings, and details of your debts and credit limits.
  • Get pre-approval. It tells you how much you can borrow and shows sellers you're serious. It usually lasts three to six months.
  • Find the home and sign the contract. The lender then values the property before it gives full approval.
  • Settle. Your lender pays the seller, and your repayments start about a month later.
  • Have the home's energy rating or the installer's quote ready, so the lender can check it qualifies.

What to compare

Start with the rate for your situation: the rate a lender offers depends on whether you'll live in the home or rent it out, how you repay, and the size of your deposit. The comparison above picks each lender's rate for your choices.

Then look past the rate.

  • Fees: upfront fees, and annual package fees that often come with an offset account.
  • Features: an offset account, redraw, extra repayments and the option to split the loan between fixed and variable.
  • The comparison rate, which adds standard fees to the rate for an example loan of $150,000 over 25 years.
  • Any cashback, but only after the rate and fees, since a higher rate can cost far more over the life of the loan.

Questions people ask

Why does the comparison rate differ from the interest rate?

The comparison rate adds the lender's standard fees to the interest rate, worked out on a $150,000 loan over 25 years. It's a fairer guide to cost, though it doesn't include every fee, such as break costs.

How much can I borrow?

Lenders work it out from your income, your living costs, your debts and credit card limits, and a buffer of 3% above the rate to allow for rises. A pre-approval or a lender's calculator gives you a figure.

What makes a home green?

Each lender sets its own rules. Most use a NatHERS rating of 7 stars or more for new homes, or a list of upgrades such as solar panels, batteries and heat pumps.