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

By Tara McCabe · · 5 min read
Fact Checked
Advertiser disclosure

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 24 January 2022

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • UHomeLoan
    interest rate
    comparison rate
    Initial monthly repayment
    1.79% p.a.
    fixed 1 year
    2.18% p.a.

    Fast, easy to apply and no ongoing fees. Choose between weekly, fortnightly or monthly repayments. 1 year fixed rates are for new Owner Occupier Principal & Interest loans.

    Go to site
    Details
  • Well Balanced Fixed
    interest rate
    comparison rate
    Initial monthly repayment
    2.27% p.a.
    fixed 2 years
    1.95% p.a.

    Super low fixed rate and only 20% deposit required. Optional 100% offset account. Free extra repayments and redraw facility. Flexible repayment schedule.

    Go to site
    Details
  • Own Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    2.34% p.a.
    fixed 2 years
    2.59% 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.

    Go to site
    Details
  • Special Fixed Rate Home Loan
    interest rate
    comparison rate
    Initial monthly repayment
    2.54% p.a.
    fixed 2 years
    3.78% p.a.

    Lock in a low fixed rate or choose to split your loan between fixed and variable. Insurance discounts and no fee credit card or zero fee personal loan available. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Limited time offer extended, T&Cs apply.

    Go to site
    Details
  • Mozo Expert Choice Badge
    Discount Fixed Rate
    interest rate
    comparison rate
    Initial monthly repayment
    2.59% p.a.
    fixed 2 years
    3.17% p.a.

    Lock in a competitive rate for 2 years. Only 20% deposit required. Flexible repayment options and make up to $5,000 in additional repayments annually. Refinance to BOQ by 31 January 2022 and get $3,000 cashback (T&Cs apply).

    Details

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

* 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, loan amount and term entered. 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

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

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