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

By Evlin DuBose · · 2 min read
Fact Checked
Advertiser disclosure
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 25 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%

    variable rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    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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    Go to site
    Details
  • Mozo Expert Choice Badge
    Express Home Loan

    Owner Occupier, Principal & Interest, LVR <90%

    variable rate
    comparison rate
    Initial monthly repayment
    6.01% p.a.
    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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    Details
  • Elevate

    Owner Occupier, Principal & Interest, <80% LVR

    variable rate
    comparison rate
    Initial monthly repayment
    6.09% p.a.
    6.20% p.a.

    Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.

    Compare
    Find out more
    Details
  • Mortgage Simplifier

    LVR<80%, Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    6.14% p.a.
    6.17% p.a.

    Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.

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    Details

* 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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