Green home loan options grow for eco-friendly borrowers

Potted plants on a table.

As the impact of climate change becomes more difficult to ignore, a number of Australian home loan providers have responded by introducing discounted home loans for borrowers with eco-friendly homes.

In the past 12 months, six new green home loans have appeared on the market, taking the number of green mortgage products tracked by Mozo from three to nine.

The growing list of options will come as good news to the many Australians who have been making an effort to minimise their impact on the environment.

“It’s great to see a significant increase in green home loans available to borrowers, as lenders look to capitalise on the growing demand for green personal finance products,” said Mozo spokesperson, Tom Godfrey.

As the name suggests, green home loans are exclusively available to borrowers whose homes meet certain environmentally-friendly requirements.

This means scoring a minimum of 7 stars under the Nationwide House Energy Rating Scheme (NatHERS) or Residential Efficiency Scorecard certification. Home evaluations are conducted on-site by an accredited assessor, who will focus on things like: 

  • Solar panels 
  • Hot water systems
  • Lighting
  • Cooling systems
  • Heating systems
  • Window size and orientation
  • Air leakage
  • Showers
  • Wall / floor material and insulation
  • Pools and outdoor spas

“The good news for borrowers is that green home loans offer some very competitive interest rates, so going with a green option could not only help save the environment, it could help you save money as well,” said Godfrey.

Among green home loans tracked by Mozo, one of the lowest rates is offered by digital lender It offers rates as low as 3.63% p.a. variable rate (4.05% p.a. comparison rate*), which is 89 basis points below the average non-green variable rate of 4.52% p.a..

On an average $400,000 owner-occupier loan paying principal and interest over 25 years, that could equate to savings of up to $59,215 on payable interest.

For more information on mortgage and lending trends, visit our home loans statistics page. And for an idea of where interest rates currently sit, visit our home loan comparison page, or browse the selection below.

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 473 home loans.
Last updated 21 June 2024 Important disclosures and comparison rate warning*
  • Basic Home Loan

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

    interest rate
    comparison rate
    Initial monthly repayment
    6.25% p.a.
    fixed 3 years
    6.20% 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.

  • Variable Home Loan 90

    Principal and Interest, LVR <90%

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

  • The Better Home Loan Special Offer

    Owner Occupier, Principal & Interest, LVR<80%

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

  • Discount Variable Home Loan

    Owner Occupier, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a. variable
    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^


* 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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While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.