Top Green Home Loans in Australia

By Maria Gil and Paige Sutton
Fact Checked
Advertiser disclosure
Tree canopy view from the ground

Residential buildings are responsible for nearly a quarter of overall energy use and more than 10% of total carbon emissions in Australia, as reported by the Australian Government. With the increasing concern about the climate crisis, it’s no wonder people are looking for greener options when it comes to building and owning homes. 

Energy use is an important metric for sustainability: just over 83% of Australian homes do not meet the 7 star Nationwide House Energy Rating Scheme (NatHERS) rating that deems a property green. Furthermore, the 2023 CSIRO data reports that only 21% of new homes built so far this year received the goal of a 7-star rating or higher.

On this page:

What is a green home loan?

A green home loan is a type of loan that encourages borrowers to buy or build their future homes in an environmentally friendly way. These loans usually offer discounted interest rates for homes that pass a form of eco-friendly certification.

 To qualify for this green home loan, your future home should typically have at least one of these qualifications**:

  • A 7 stars or higher rating under NatHERS.
  • A Residential Efficiency Scorecard with a rating of 7 stars or more (excludes the impact of installed/installing rooftop solar).
  • Passive House Certification.
  • Green Star, Design & As Built score of 8 points or more on the credit ‘15 Greenhouse Gas Emissions.’

**Specific qualification criteria will differ from lender to lender.

Green home loans

Now that you know what a green home loan is, let's meet the lenders who offer loans at special rates for borrowers who commit to building or purchasing homes that are green.

Mozo may receive payment if you click to the website of one of the products below. Mozo does not compare the entire market.
Important disclosures and comparison rate warning*
loans.com.au - Green Home Loan
  • Introductory variable rates starting at 5.89% p.a. (6.48% p.a. comparison rate*) for LVRS < 90%
  • No ongoing fees
  • $530 upfront fee
Find out more

The Green Home Loan 90 from loans.com.au offers low introductory variable rates from 5.89% p.a. (6.48% p.a. comparison rate*) for LVRS <90% for homes that have a 7.0 star NatHERS rating or higher. After 5 years, the rate will increase by 0.84% p.a. This loan has a maximum LVR of 90% for loans from $50,000 to $2,000,000. If you are considering buying a green home that was built in the last 12 months, this loan might be a good choice.

Gateway Australia - Green Home Loan
  • 2023 Mozo Experts Choice Home Loan Award
  • Variable starting at 6.24% p.a. (6.52% p.a. comparison rate*)
  • Extra repayments and redraw facility available ($500 min. redraw)
  • $299 yearly fee
Find out more

The Green Home Loan from Gateway Australia is a 2023 Mozo Experts Choice Home Loan Award winner for its green features and offers borrowers a competitive rate. Variable rates begin at 6.24% p.a. (6.52% p.a. comparison rate*) for a minimum loan amount of $150,000 with a maximum LVR of 80%. Borrowers will be able to split the loan between a variable and fixed rate, and will also have the option to make free extra repayments - which could mean owning your home quicker! 

Bank Australia - Clean Energy Home Loan Eco
  • 2023 Mozo Experts Choice Award winner
  • Variable rates as low as 6.04% p.a. (6.48% p.a. comparison rate*)
  • $350 yearly fee
  • Optional mortgage offset account
Find out more

Bank Australia’s Clean Energy Home Loan is a home loan package that's light on fees and offers up to 10% off on insurance (T&Cs apply). This loan is available for homes that have 7-star or more NatHERS rating or homes that have made ambitious green updates in the last 12 months. Variable rates start as low as 6.04% p.a. (6.48% p.a. comparison rate*) for loans of $150,000 and more with a maximum LVR of 90%.

Regional Australia Bank - Sustainable Home Loan
  • 6.64% p.a. variable rate (6.67% p.a. comparison rate*)
  • No ongoing service fee
  • $250 discharge fee
Find out more

The Sustainable Home Loan from Regional Australia Bank’s variable rates start at 6.64% p.a. variable rate (6.67% p.a. comparison rate*) for loans of $100,000 and more with a maximum LVR of 95%. One thing to be mindful of is that the environmentally friendly certification and standards are quite rigorous, so make sure to check out the criteria on their site. Unlike some other loans that are available to first time home buyers this loan is only for existing homeowners.

Firstmac - Green Offset 90
  • 5 year intro rate of 5.99% p.a. (6.66% p.a. comparison rate*)
  • Free extra repayments, redraw facility and offset account
  • $1,021 upfront fees
Find out more

This green home loan could suit those looking for a full-featured home loan with a free offset account. Borrowers typically receive a 5.99% p.a. (6.66% p.a. comparison rate*) variable rate for loans from $50,000 to $2,000,000 with a LVR of up to 90%. However, this rate is only available for the first five years, and then increases by 0.95%. This loan is available for new properties built in the last 12 months that have a minimum NatHERS star rating of 7.0.

Green Home Loan FAQs

What is NatHERS?

Nationwide House Energy Rating Scheme (NatHERS) is a rating system houses receive based on how energy efficient and environmentally friendly the home is. Using research by CSIRO, the rating takes into consideration how much energy the design of a house will need for heating and cooling.Nationwide House Energy Rating Scheme (NatHERS) is a rating system houses receive based on how energy efficient and environmentally friendly the home is. Using research by CSIRO, the rating takes into consideration how much energy the design of a house will need for heating and cooling.

Most construction plans come with a rating on them from a scale of 1-10. The more stars the house has, the more efficient it is. Most green home loans require a home to have at least a 7-star rating to qualify for the loan.

How does my home qualify for a green home loan?

Each green home loan lender has different criteria for their loans. If you want to check if your home qualifies for a specific loan, your best option is to check the product disclosure statement and information on the lender’s website for specific requirements.

What is the difference between a green loan and regular home loan?

The main difference between a green home loan and a regular home loan is that a green loan is exclusive to homes that qualify certain environmentally friendly criteria put forth by the lender.

Should I get a green home loan?

Getting a green home loan is great if you are environmentally cautious and want to do your part in the fight against the climate crisis.

However, even though lenders offer interest rate discounts for green homes, it doesn’t mean they are the cheapest home loan option. If your priority is finding the most affordable home loan out there, then a green home loan might not be your best option.

When comparing home loans you should consider things like:

  • Interest rates
  • Home loan fees
  • Money-saving features like an offset account or being able to make extra repayments

But if you are already considering investing in an eco-friendly and energy efficient home, getting a green home loan might be a good choice.

If you want to live a green loan lifestyle, consider checking out the different personal green loan lenders in the market. Or check out ways to make your finances greener.

Home loan comparisons on Mozo

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can compare more home loans here.
Last updated 27 July 2024 Important disclosures and comparison rate warning*

Promoted

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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 online in minutes.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Optimum Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.69 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Lock in a competitive interest rate and enjoy peace of mind for the fixed period. Available for owner occupied new and refinanced home loans with at least 20% deposit. Split option available as well as offset and redraw. Noapplication, ongoing or banking fees. Third Party fees may be applicable - payable within loan repayments. Extra repayments up to $20K per annum permitted. Apply online, 100% member owned credit union.

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    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 online in minutes.

  • OMG Home Loan

    • Owner Occupier
    • Principal & Interest
    • <60% LVR
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    6.02 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    BCU Bank’s OMG owner occupied home loan offers a variety of great low rates depending on your deposit. Save with no ongoing annual fees. Access your extra payments when you need to through the redraw facility. Pre-approval valid for 3 months.

  • Flex Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    5.99 % p.a.
    Fixed 3 years
    Comparison rate
    6.34 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Express Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <90%
    Interest rate
    6.01 % p.a.
    Variable
    Comparison rate
    6.14 % p.a.
    Initial monthly repayment
    $3,001
    Go to site

    Get online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.

  • Neat Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.11 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.

  • Special Real Deal Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <80%
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.13 % p.a.
    Initial monthly repayment
    $3,027
    Go to site

    Refinancers or first home buyers pay no monthly or annual fees. Up to $3,000 cashback when you complete your home loan application online. $2,000 cashback on loans ≥$250K; or $3,000 cashback on loans ≥$500K. LVR ≤80%. T&Cs and credit criteria apply.

  • Basic Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Enjoy a low rate home loan with $0 application fee and $0 ongoing fees. Flexibility to split your loan and set different repayment types. Fee free redraw from your loan using online banking. Flexible ways to repay. 40% Deposit required.

  • Flex Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <60%
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.38 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.

  • Offset Home Loan

    • Owner Occupier
    • LVR<60%
    • Principal & Interest
    Interest rate
    6.14 % p.a.
    Variable
    Comparison rate
    6.39 % p.a.
    Initial monthly repayment
    $3,043
    Go to site

    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

  • Basic Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $10,000,000.

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    6.25 % p.a.
    Fixed 3 years
    Comparison rate
    6.42 % p.a.
    Initial monthly repayment
    $3,079
    Go to site

  • Fixed Rate

    • Owner Occupier
    • Principal & Interest
    • <80% LVR
    Interest rate
    6.54 % p.a.
    Fixed 2 years
    Comparison rate
    7.10 % p.a.
    Initial monthly repayment
    $3,174

    Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.

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Need help with refinancing?

You might have questions that need personal answers. We’ve teamed up with the mortgage brokers at Lendi to get you the answers you need, and a home loan deal you deserve.

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* 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.

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.

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