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, the lowest rates are offered by digital lender It offers rates as low as 1.88% p.a. variable rate (2.30% p.a. comparison rate*), which is 121 basis points below the average non-green variable rate of 3.09% 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 $2,922 on yearly repayments.

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.

Home loan comparisons on Mozo - last updated 13 August 2022

Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
  • Variable Home Loan 70

    interest rate
    comparison rate
    Initial monthly repayment
    3.10% p.a. variable
    3.12% 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 30% deposit required.

  • Unloan Variable

    Owner Occupier, Refinance Only

    interest rate
    comparison rate
    Initial monthly repayment
    3.14% p.a. variable
    3.06% p.a.

    For refinancers only. 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 in as little as 10 minutes.

  • PAYG Home Loan

    Owner Occupier, Principal & Interest, LVR<80%

    interest rate
    comparison rate
    Initial monthly repayment
    3.29% p.a. variable
    3.33% p.a.

    Low variable rate. Ideal for new home buyers or refinancers. Unlimited additional repayments. Unlimited free redraw. Application completely online. Optional 100% offset can be added for $120 p.a.. 20% deposit required.

  • Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    3.79% p.a. variable
    3.79% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required.


* 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.

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.