Suncorp and homeloans.com.au have launched new loan and cash bonuses for borrowers who join the green home loan movement.

Online lender homeloans.com.au has rolled out a new green loan product to encourage homeowners to make energy-efficient improvements in their homes.

The Green Loan has an ultra-low introductory rate of 0.89% p.a. (1.73% p.a. comparison rate) and is available to existing customers as a top up on their current loan.

The new Green Loan offers loan amounts of up to $25,000 for the purchase and installation of energy-efficient products which can include:

  • Battery packs and storage
  • Electrical energy storage
  • Hot water heat pump or solar hot water system
  • Insulation and/or double-glazed windows
  • Solar panels
  • Energy-efficient household appliances
  • Air conditioning system

Purchase of energy-efficient appliances with a rating of at least 4.5 stars will also be eligible for the loan. The installation of these products will also be covered.

The introductory rate of 0.89% p.a. will last for the first five years. However, borrowers have the flexibility to pay off the entire amount during the period.

The loan has no application or early repayment fees, but the minimum monthly repayments are calculated based on the customer’s existing loan.

If there is a remaining balance after the five-year introductory period, the loan will revert to the current rate of their existing loan.

Homeloans.com.au CEO Scott McWilliam said it was a timely opportunity for homeowners to take control of spiralling electricity costs and invest in clean energy solutions.

“Many Australians have been spending a lot more time at home over the past two years, which has no doubt impacted household energy consumption and energy costs,” Mr McWilliam told Your Mortgage.

Mr McWilliam, however, said that this is more than just saving money off electricity and water bills.

Pictured: Scott McWilliam. Image supplied.

“The future of our planet is in our hands, we hope to make it easier for our customers to make a positive impact on the environment by reducing their reliance on fossil fuels through renewable energy solutions,” he said.

Mr McWilliam said homeowners are a powerful group of consumers with substantial influence. He encouraged customers to hold the businesses they engage with accountable for their contributions to sustainability.   

“We’re supporting our customers’ efforts to go green through our Carbon Conscious program, which sees one tree planted for every loan we settle. In partnership with our customers, we recently hit a milestone of 40,000 Mallee Eucalypts planted,” he said.

“Consumers can look for initiatives such as this, which go beyond lowering the environmental impacts of doing business and actually seek to make a positive impact, when they are making purchasing decisions.”

Suncorp's cash bonus for borrowers going green

Suncorp Bank has also unveiled an offer for its customers who are making a conscious effort to reduce their environmental footprint and transition to renewable energy in their home.

New and existing Suncorp customers who have a solar power system or will have one installed before the end of the year will be eligible for the Solar Home Bonus of up to $3,000.

The Suncorp Solar Home Bonus offer includes:

  • A $3,000 cashback for customers signing up to a new, eligible Suncorp Bank home loan.
  • Cashback for loans for both houses and townhouses which have an eligible solar system installed.
  • A $500 cashback for eligible existing customers who already have a solar power system installed.

Borrowers who are refinancing existing Suncorp Bank loans or loan pre-approvals are not eligible for the cash bonus.

Suncorp Bank CEO Clive van Horen said around four in five of the bank's customers put renewable energy as one of their top sustainability priorities.

"We are committed to providing banking solutions for customers that support sustainability and our Solar Home Bonus is a practical step towards a more sustainable world,” Mr van Horen said.

“Not only will we continue to offer our customers more environmentally friendly banking options, but the bank has also committed to being 100% powered by renewable electricity by 2025, and to reach net zero greenhouse emissions across our operations by 2050.”