Top Green Home Loans in Australia

By Maria Gil and Paige Sutton
Fact Checked
Advertiser disclosure
Tree canopy view from the ground

Residential buildings are responsible for nearly a quarter of overall energy use and more than 10% of total carbon emissions in Australia, as reported by the Australian Government. With the increasing concern about the climate crisis, it’s no wonder people are looking for greener options when it comes to building and owning homes. 

Energy use is an important metric for sustainability: just over 83% of Australian homes do not meet the 7 star Nationwide House Energy Rating Scheme (NatHERS) rating that deems a property green. Furthermore, the 2023 CSIRO data reports that only 21% of new homes built so far this year received the goal of a 7-star rating or higher.

On this page:

What is a green home loan?

A green home loan is a type of loan that encourages borrowers to buy or build their future homes in an environmentally friendly way. These loans usually offer discounted interest rates for homes that pass a form of eco-friendly certification.

 To qualify for this green home loan, your future home should typically have at least one of these qualifications**:

  • A 7 stars or higher rating under NatHERS.
  • A Residential Efficiency Scorecard with a rating of 7 stars or more (excludes the impact of installed/installing rooftop solar).
  • Passive House Certification.
  • Green Star, Design & As Built score of 8 points or more on the credit ‘15 Greenhouse Gas Emissions.’

**Specific qualification criteria will differ from lender to lender.

Green home loans

Now that you know what a green home loan is, let's meet the lenders who offer loans at special rates for borrowers who commit to building or purchasing homes that are green.

loans.com.au - Green Home Loan
  • Introductory variable rates starting at 5.89% p.a. (6.48% p.a. comparison rate*) for LVRS < 90%
  • No ongoing fees
  • $530 upfront fee
Find out more

The Green Home Loan 90 from loans.com.au offers low introductory variable rates from 5.89% p.a. (6.48% p.a. comparison rate*) for LVRS <90% for homes that have a 7.0 star NatHERS rating or higher. After 5 years, the rate will increase by 0.84% p.a. This loan has a maximum LVR of 90% for loans from $50,000 to $2,000,000. If you are considering buying a green home that was built in the last 12 months, this loan might be a good choice.

Gateway Australia - Green Home Loan
  • 2023 Mozo Experts Choice Home Loan Award
  • Variable starting at 6.24% p.a. (6.52% p.a. comparison rate*)
  • Extra repayments and redraw facility available ($500 min. redraw)
  • $299 yearly fee
Find out more

The Green Home Loan from Gateway Australia is a 2023 Mozo Experts Choice Home Loan Award winner for its green features and offers borrowers a competitive rate. Variable rates begin at 6.24% p.a. (6.52% p.a. comparison rate*) for a minimum loan amount of $150,000 with a maximum LVR of 80%. Borrowers will be able to split the loan between a variable and fixed rate, and will also have the option to make free extra repayments - which could mean owning your home quicker! 

Bank Australia - Clean Energy Home Loan Eco
  • 2023 Mozo Experts Choice Award winner
  • Variable rates as low as 6.04% p.a. (6.48% p.a. comparison rate*)
  • $350 yearly fee
  • Optional mortgage offset account
Find out more

Bank Australia’s Clean Energy Home Loan is a home loan package that's light on fees and offers up to 10% off on insurance (T&Cs apply). This loan is available for homes that have 7-star or more NatHERS rating or homes that have made ambitious green updates in the last 12 months. Variable rates start as low as 6.04% p.a. (6.48% p.a. comparison rate*) for loans of $150,000 and more with a maximum LVR of 90%.

Regional Australia Bank - Sustainable Home Loan
  • 6.64% p.a. variable rate (6.67% p.a. comparison rate*)
  • No ongoing service fee
  • $250 discharge fee
Find out more

The Sustainable Home Loan from Regional Australia Bank’s variable rates start at 6.64% p.a. variable rate (6.67% p.a. comparison rate*) for loans of $100,000 and more with a maximum LVR of 95%. One thing to be mindful of is that the environmentally friendly certification and standards are quite rigorous, so make sure to check out the criteria on their site. Unlike some other loans that are available to first time home buyers this loan is only for existing homeowners.

Firstmac - Green Offset 90
  • 5 year intro rate of 5.99% p.a. (6.66% p.a. comparison rate*)
  • Free extra repayments, redraw facility and offset account
  • $1,021 upfront fees
Find out more

This green home loan could suit those looking for a full-featured home loan with a free offset account. Borrowers typically receive a 5.99% p.a. (6.66% p.a. comparison rate*) variable rate for loans from $50,000 to $2,000,000 with a LVR of up to 90%. However, this rate is only available for the first five years, and then increases by 0.95%. This loan is available for new properties built in the last 12 months that have a minimum NatHERS star rating of 7.0.

Green Home Loan FAQs

What is NatHERS?

Nationwide House Energy Rating Scheme (NatHERS) is a rating system houses receive based on how energy efficient and environmentally friendly the home is. Using research by CSIRO, the rating takes into consideration how much energy the design of a house will need for heating and cooling.Nationwide House Energy Rating Scheme (NatHERS) is a rating system houses receive based on how energy efficient and environmentally friendly the home is. Using research by CSIRO, the rating takes into consideration how much energy the design of a house will need for heating and cooling.

Most construction plans come with a rating on them from a scale of 1-10. The more stars the house has, the more efficient it is. Most green home loans require a home to have at least a 7-star rating to qualify for the loan.

How does my home qualify for a green home loan?

Each green home loan lender has different criteria for their loans. If you want to check if your home qualifies for a specific loan, your best option is to check the product disclosure statement and information on the lender’s website for specific requirements.

What is the difference between a green loan and regular home loan?

The main difference between a green home loan and a regular home loan is that a green loan is exclusive to homes that qualify certain environmentally friendly criteria put forth by the lender.

Should I get a green home loan?

Getting a green home loan is great if you are environmentally cautious and want to do your part in the fight against the climate crisis.

However, even though lenders offer interest rate discounts for green homes, it doesn’t mean they are the cheapest home loan option. If your priority is finding the most affordable home loan out there, then a green home loan might not be your best option.

When comparing home loans you should consider things like:

  • Interest rates
  • Home loan fees
  • Money-saving features like an offset account or being able to make extra repayments

But if you are already considering investing in an eco-friendly and energy efficient home, getting a green home loan might be a good choice.

If you want to live a green loan lifestyle, consider checking out the different personal green loan lenders in the market. Or check out ways to make your finances greener.

Compare other home loan options - last updated 19 April 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Featured Product
    Mozo Expert Choice Badge
    Unloan Variable

    Owner Occupier, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a. variable
    5.90% p.a.

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

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  • Mozo Expert Choice Badge
    Express Home Loan

    Owner Occupier, Principal & Interest, LVR <90%

    interest rate
    comparison rate
    Initial monthly repayment
    6.01% p.a. variable
    6.14% p.a.

    Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

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  • Flex Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 3 years
    6.37% p.a.

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

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  • Discounted Home Value Loan

    Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a. variable
    6.09% p.a.

    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).

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  • Neat Home Loan

    Owner Occupier, Principal & Interest, LVR <60%

    interest rate
    comparison rate
    Initial monthly repayment
    6.14% p.a. variable
    6.16% p.a.

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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