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

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 1 March 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Home Fixed Rate

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    5.80% p.a.
    fixed 3 years
    5.91% p.a.

    Enjoy the security of a competitive fixed interest rate from Up. No application, monthly, annual, redraw, or discharge fees to pay. Up to 50 free offset accounts available. Up home loans are only available to owner-occupiers buying or refinancing in major Australian cities. Up is 100% owned by Bendigo Bank. New joiners get $10 by signing up to the app using code UPHOMEMOZO. (T&Cs apply). Mozo Experts Choice award winner.

    Compare
    Details
  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 3 years
    6.13% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

    Compare
    Details
  • Flex Home Loan

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

    interest rate
    comparison rate
    Initial monthly repayment
    6.64% p.a.
    fixed 3 years
    6.56% p.a.

    Competitive fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 20% deposit required.

    Compare
    Details
  • Fixed Rate Loan with Orange Advantage

    Orange Advantage, Owner Occupiers, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a.
    fixed 2 years
    6.16% p.a.

    Know exactly what your repayments will be, and you can fix your rate for up to 5 years. No monthly, annual fee or transaction fees. Free additional repayments (less than $10,000 p.a.). Valid for loans of $50,000 up to $2,000,000.

    Compare
    Details
  • Basic Home Loan

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

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a.
    fixed 3 years
    6.19% p.a.

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

    Compare
    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. 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

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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