Fixed rates for Bank Australia’s Clean Energy Home Loan fall below 2%!

By Tara McCabe ·

For the first time ever, fixed home loan rates now start with a 1! That’s right, the Bank Australia Clean Energy Home Loan now sits at a rock bottom 1.79% p.a. (3.10% p.a. comparison rate*) for a three year fixed rate home loan. This comes not long after the Reserve Bank’s emergency cash rate cut in mid-March.

Who is eligible for Bank Australia’s Clean Energy Home Loan?

Bank Australia introduced its Clean Energy Home just a few short months ago as an incentive for Australians looking to purchase or build a more environmentally friendly home. 

The details of the loan are pretty much the same as Bank Australia’s Premium Home Loan, but with a 0.40% annual interest rate discount if you can meet the relevant criteria. To get the discount, your home will need to achieve a minimum rating under one of the following energy efficiency schemes:

  • 7 plus star NatHERS rating (Nationwide House Energy Rating Scheme)
  • 7 plus star Residential Efficiency Scorecard (excludes the impact of installed/installing rooftop solar)
  • Passive House Certification
  • Green Star - Design & As Built v1.2 score 8 points or more on the credit ‘15 Greenhouse Gas Emissions’

Exactly how low are Bank Australia’s fixed rates now?

With Bank Australia’s Clean Energy Home Loan you can opt to fix your rate for 1, 2, 3, or 5 years. Granted you are eligible for the 0.40% annual interest rate discount, fixed rates for owner-occupier, principal and interest loans with an LVR of 70% start from the following low rates:

  • 1 year fixed rate - 1.84% p.a. (3.30% p.a. comparison rate*)
  • 2 year fixed rate - 1.79% p.a. (3.09% p.a. comparison rate*)
  • 3 year fixed rate - 1.79% p.a. (3.10% p.a. comparison rate*)
  • 5 year fixed rate - 2.89% p.a. (3.41% p.a. comparison rate*)

In fact, with such low rates, this is the first time ever that fixed home loan rates have fallen to below 2%!^ Plus, if you’re looking to take out a loan with an LVR between 70% and 90% you may still be able to get a loan in the 1% range, with 3 year fixed rates for this size deposit starting from 1.84% p.a. (3.18% p.a. comparison rate*).

Mozo Experts Choice Award winning home loan!

On top of offering some of the lowest fixed home loan rates around, Bank Australia’s Clean Energy Home Loan also won a Mozo Experts Choice Award this year!

Every year Mozo’s team of data experts compare home loans available in Australia to determine which ones really are offering borrowers more competitive rates and lots of useful features. Impressed with the bank’s eco-friendly home loan, our expert judges awarded Bank Australia’s variable rate Clean Energy Home Loan the inaugural Mozo Experts Choice Award for best Green Home Loan.

Is there anything else I should know?

This home loan package comes with a number of extra features including an offset account, the ability to make up to $20,000 worth of extra repayments each year, a free redraw facility and the possibility to apply for repayment holidays. 

Of course, as with most premium home loan packages, Bank Australia’s Clean Energy Home Loan does come with an annual fee. So you’ll want to make sure the $350 yearly fee is worth it to access all the extra features and eco interest rate discount.

Keen to check out more fixed rate home loans? With rates falling everyday now might be the time to take stock of what’s out there and you can do just that by heading to Mozo’s compare fixed home loans page. 

Compare fixed rate home loans - last updated January 16, 2021

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.

I want to borrow


  • 1.99% p.a.
    fixed 3 years

    2.70% p.a.

  • mozo-experts-choice-2020

    1.95% p.a.
    fixed 3 years

    2.27% p.a.

  • 2.04% p.a.
    fixed 2 years

    2.79% p.a.

  • 2.19% p.a.
    fixed 3 years

    2.53% p.a.

  • 2.19% p.a.
    fixed 3 years

    3.03% p.a.


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^This is the first time fixed home loan rates in the Mozo database have fallen to below 2%.

^See information about the Mozo Experts Choice Home Loans Awards

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