What you need to know about CommBank's Green Home Loan Offer

A fancy modern house with a green lawn.
Photo by R Architecture on Unsplash.

Last year, Commonwealth Bank introduced a green home loan offer, which rewards new and existing customers for reducing their dwellings’ environmental footprint.

The Green Home Offer promises lower interest rates for customers whose homes meet certain sustainable conditions, such as having a certified Green Star Home, or satisfying the following criteria:

  • Nationwide House Energy Rating Scheme (NatHERS) = 7 stars or greater.
  • Electric cooking/heating instead of gas
    Heat pump hot water system.
  • Solar panels producing minimum energy outputs*. 

*Minimum energy requirements for solar size relative to size of the house: 

  • Up to 150m2 = 5.5kWe
  • 150 - 250m2 = 7.5kWe
  • 250m2+ = 10kWe

Alternatively, customers can present evidence showing their home is a Green Building Council Australia Green Home Standard certified build.

Customers whose eco-friendly homes make the cut could enjoy a standard variable late as low as 4.99% p.a. (5.39% p.a. comparison rate*) – one of the lowest available options tracked by Mozo. 

This will be for owner-occupiers making P&I repayments with a Wealth Package mortgage and a deposit of at least 20%. 

Building a green home for the future

A model factory spewing flowers and leaves on a blue background.

Smaller lenders have offered green home loans to environmentally conscious Aussies for a while now. However, this launch marks a critical shift in the big bank’s attitude towards sustainability and climate change action.

“We want to reward new and existing customers [...] investing in homes that are efficient, comfortable, and healthier for them and the environment,” said CommBank’s executive general manager of home buying, Dr. Michael Baumann.

“We expect all residential homes to be built to these standards over the coming years as we move towards a net zero future.”

CommBank made the announcement in partnership with the Green Building Council of Australia (GBCA), who lauded the bank’s new future-minded mission, and has been supported with a further $125 million in funding by the Clean Energy Finance Corporation (CEFC).

RELATED: Sustainable and energy-efficient home features

By raising awareness and providing ways to ease both living costs and environmental impact, CommBank sets a new precedent in green finance for major Australian banks.

Looking to save money and the environment? Compare green home loans on offer.

Compare variable rate home loans - last updated 31 May 2024

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  • Basic Home Loan

    Owner Occupier, LVR<60%, Principal & Interest

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

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

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    Details
  • Variable Home Loan 90

    Principal and Interest, LVR <90%

    variable rate
    comparison rate
    Initial monthly repayment
    6.04% p.a.
    6.06% p.a.

    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

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    Details
  • Discount Variable Home Loan

    Owner Occupier, LVR<70%

    variable rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    6.01% p.a.

    A low rate home loan for owner-occupiers packed with great features including unlimited extra repayments, free online redraw, no application or monthly admin fees. Rate will vary depending on LVR. Winner of a Mozo Experts Choice 2024 Low Cost Home Loan Award^

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  • The Better Home Loan Special Offer

    Owner Occupier, Principal & Interest, LVR<80%

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

    Enjoy a variable rate home loan with a bunch of features from Police Credit Union. Make extra repayments at any time without penalty. No monthly, annual or upfront fees. Free online redraw. Minimum 20% deposit. Qualifying criteria applies. Minimum loan amount is 200K. For new customers only. Mozo Experts Choice Home Lender Credit Union of the Year 2023.

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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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