| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Row Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.74% p.a. | 6.19% p.a. | $2,915 | Principal & Interest | Variable | $0 | $530 | 90% |
| Disclosure | ||||||||||||
5.64% p.a. | 5.69% p.a. | $2,883 | Principal & Interest | Variable | $0 | $500 | 60% | ||||||||||||||
5.43% p.a. | 6.02% p.a. | $2,817 | Principal & Interest | Variable | $350 | $0 | 90% | ||||||||||||||
5.74% p.a. | 5.79% p.a. | $2,915 | Principal & Interest | Variable | $null | $null | 80% | ||||||||||||||
5.99% p.a. | 6.55% p.a. | $2,995 | Principal & Interest | Variable | $0 | $721 | 90% | ||||||||||||||
5.70% p.a. | 5.99% p.a. | $2,902 | Principal & Interest | Variable | $299 | $0 | 80% | ||||||||||||||
5.94% p.a. | 6.28% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Disclosure |
Top April Green Home Loans
As rates ease and sustainability stays top of mind, green home loans are attracting more attention. These loans offer discounts or incentives for energy-efficient homes, including new builds with strong environmental credentials, solar upgrades, or high energy ratings.
With household costs still elevated, a green home loan can deliver two wins: a lower interest rate and reduced utility bills over time. Whether you're buying or building, now may be the time to make your home loan – and your home – more energy efficient.
Here are some of the leading green home loan rates in our database right now:
Best green home loan rates from our database
| Brand | Product | Advertised rate (per annum) |
Comparison rate (per annum) |
|---|---|---|---|
| Bank Australia | Clean Energy Home Loan - LVR ≤90% | 5.43% | 6.02% |
| Summerland Bank | Eco Home Loan (new customers only) - LVR ≤60% | 5.59% | 5.64% |
| Gateway Bank | Green Plus Home Loan - LVR ≤80% | 5.60% | 5.89% |
| Reduce Home Loans | Eco Home Loan Variable - LVR <60% | 5.64% | 5.69% |
| loans.com.au | Solar Home Loan | 5.74% | 6.19% |
Rates correct as of 1 April. Rates may differ to comparison table above.
On this page:
- What are green home loans?
- Is my home eligible for a green mortgage?
- Which lenders offer green home loans?
- What home improvements can help secure a green home loan?
What are green home loans?
Green home loans, sometimes known as eco-friendly or sustainable home loans, are financial products designed to incentivise environmentally responsible housing choices.
These loans typically offer lower rates to homeowners who own or are buying a home that meets certain energy-efficiency metrics, thereby reducing its owner's carbon footprint.
Many green home loans can also be used to fund the construction or renovation of energy-efficient, environmentally friendly homes.
What are green home loans for?
Green home loans are designed to support eco-friendly homeownership by offering financing options for properties that incorporate sustainable materials or technology. These loans primarily aim to foster energy efficiency and promote lower environmental impact. Here’s how green home loans align with key sustainability principles:
Sustainable practices
Green home loans are designed to finance properties that are built or upgraded with a focus on sustainability, using eco-friendly materials and minimising environmental impact. By supporting eco-friendly building methods, green loans encourage homeowners to contribute to a more sustainable future.
Loan incentives
Many lenders offer financial benefits for green home loans, including reduced interest rates or discounts on loan fees. These incentives can make the transition to sustainable living more affordable, helping homeowners lower both their financial and environmental costs.
Energy efficiency
Homes financed through green loans often emphasise energy efficiency, incorporating features such as solar panels, efficient insulation, and eco-friendly appliances. These upgrades reduce energy consumption, leading to lower utility bills and long-term savings.
Carbon footprint reduction
By financing homes that use less energy and fewer resources, green home loans contribute to reducing a lender’s overall carbon footprint. Homes that meet green standards help decrease greenhouse gas emissions, making a positive impact on the environment.
Pros and cons of green home loans
Pros:
- Lower interest rates and fees - Many lenders provide financial perks like discounted interest rates or waived fees to green home loan borrowers, making these products more cost-effective over time.
- Reduced energy costs - Energy-efficient upgrades funded by green home loans typically result in lower utility expenses, saving homeowners money in the long run.
- Increased property value - Eco-friendly homes often have higher resale values as they appeal to buyers interested in sustainable properties.
- Positive environmental impact - By reducing resource usage and emissions, homes that qualify for green home loans often align with sustainable practices, which are beneficial for both homeowners and the planet.
Cons:
- Eligibility requirements - Green home loans usually come with strict eligibility criteria, often requiring specific energy ratings or eco-certifications that may limit qualifying properties.
- Initial investment costs - Some green upgrades, such as solar panels or specialised insulation, can be costly upfront, even if they provide savings over time.
- Limited lender options - Fewer lenders offer green home loans than do traditional home loans, which may limit borrowers’ choices.
How do green home loans differ?
Green home loans usually come with features that can help borrowers carry out environmentally-friendly improvements in their homes. Here are some of the most common features of a green home loan:
-
Discounted or lower interest rate
Perhaps the most attractive feature of a typical green home loan is its interest rate. These products generally offer lower rates to borrowers with sustainable homes, or those who invest in energy-efficient home improvements. Such improvements can include adding solar panels, environmentally-friendly insulation, energy-efficient heating and cooling systems, and double-glazed windows. -
Flexible repayment terms
Many green home loans offer greater flexibility when it comes to repayment terms than traditional mortgages. Such flexibility can help ease the financial burden associated with making eco-friendly upgrades. Some green home loans can even take the place of a construction home loan, drip feeding the funds needed to build or renovate a property and thereby saving a borrower interest. -
Eligibility tests
Unlike a typical home loan borrower, a person taking out a green home loan will need to prove their property is eligible. This might mean making a certain number of sustainable upgrades or securing certification from an approved organisation.
Is my home eligible for a green mortgage?
To qualify for green home loans, borrowers must own or buy a home that meets certain qualifications or implement a specific number of sustainable upgrades.
Exact requirements will differ from lender to lender but the certifications that can qualify a home for a sustainable mortgage are commonly provided by either the Nationwide House Energy Rating Scheme (NatHERS) or the Green Building Council of Australia.
NatHERS
NatHERS rates a building's eco-friendliness out of ten stars, with those rated seven stars or higher generally eligible for a green home loan.
Many states in Australia demand new homes boast a NatHERS rating of seven stars or higher, so if you own or are building a new home, you might qualify by default.
Green Star
The Green Building Council of Australia can also certify that a home is sustainable with its Green Star Homes Certification.
Fewer lenders accept this certification than do a NatHERS star rating. CommBank is among those that will consider a home's Green Star rating.
Sustainable home improvements
Certain lenders might also consider a home eligible for a green mortgage if a specific number of 'sustainable' improvements have made within a set timeframe.
Which lenders offer green home loans?
Plenty of financial institutions offer green home loans. Here are a few that do, and you can find more by perusing the table above:
-
CommBank
CommBank's Green Home Offer provides borrowers with a discounted standard variable rate loan when they build, buy, or renovate their home to be more sustainable, climate resilient, and energy efficient.
-
NAB
NAB offers lower interest rates and discounted Lenders Mortgage Insurance (LMI) to eligible 'sustainable' home loan customers.
-
loans.com.au
loans.com.au's Green Home Loan is available for homes that are less than 12 months old and have a NatHERS rating of seven stars or more. The discount is available for the first five years of the loan. The lender also offers discounted interest rates for homes with solar panels.
-
Bank Australia
Bank Australia offers three green home loan products, offering with different interest rates for homes that are more sustainable than others. Its lowest rate green home loan requires a home to have a 7.5-star NatHERS rating and solar panels, while the highest rate green home loan is available to borrowers who have made at least three sustainable home improvements within the last 12 months.
What home improvements can help secure a green home loan?
There are plenty of home improvements that can help save homeowners money, whether that's by reducing the size of their power bill or making them eligible for a green home loan. Such improvements include adding:
-
Insulation
-
Energy-efficient appliances
-
Double-glazed windows
-
High-efficiency heating and cooling systems
-
Water-saving fixtures
-
Smart home technology
Get help finding
the right home loan
Not sure which type of loan is best for your needs?
Your Mortgage can help you find out.
Since 1995 we've been helping Australians learn about home ownership, compare home loans and get help from home loan specialists to find the right home loan for them.
© 2025 Savings.com.au Pty Ltd · AFSL and Australian Credit License Number 515843
The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, InfoChoice.com.au, YourMortgage.com.au, YourInvestmentPropertyMag.com.au, and Performance Drive are part of the InfoChoice Group. In the interest of full disclosure, the InfoChoice Group is associated with the Firstmac Group. Read about how Infochoice Group manages potential conflicts of interest, along with how we get paid.
Savings.com.au Pty Ltd ACN 161 358 363 operates as an Australian Financial Services Licensee and an Australian Credit Licensee Number 515843. Savings.com.au is a general information provider and in giving you general product information, Savings.com.au is not making any suggestion or recommendation about any particular product and all market products may not be considered. If you decide to apply for a credit product listed on Savings.com.au, you will deal directly with a credit provider, and not with Savings.com.au. Rates and product information should be confirmed with the relevant credit provider. For more information, read Savings.com.au's Financial Services and Credit Guide (FSCG) The information provided constitutes information which is general in nature and has not taken into account any of your personal objectives, financial situation, or needs. Savings.com.au may receive a fee for products displayed.
