This 2021 Mozo Experts Choice Award winning green home loan from Bank Australia could act as a great accompaniment for anyone looking to buy or build a more environmentally friendly home. If eligible for this home loan, you’ll receive a pretty substantial 0.40% discount on your variable interest rate for the first five years of the loan.
Variable interest rates for Bank Australia’s Clean Energy Home Loan start from as low as 2.50% (3.01% comparison rate*). You can grab this introductory rate for the first 60 months (five years) of your loan if you’re looking to borrow $500,000 or more. The offer comes with a loan to value ratio of <90%, so you will need a deposit of at least 10% saved up, which could make it accessible for first time buyers.
Now of course, to get any of these discounted rates in the first place you will have to meet the criteria of the Clean Energy Home Loan. This particular home loan is designed to encourage Aussies to invest in homes that are kinder to the planet. So to be eligible for the loan, the home you are buying or building will have to be rated 7 stars or higher under the Nationwide House Energy Rating Scheme (NatHERS).
Other perks include the ability to make free extra repayments, meaning you could have your loan paid off sooner than you think; a free redraw facility, in case you find yourself short on funds; a Mortgage Offset account; and the ability to split your loan into two different accounts. This last feature will allow you to pay one portion of your loan with a guaranteed fixed interest rate and the other with a possibly lower variable rate, meaning you really can have the best of both interest rate worlds.
On top of all that you’ll not only have the regular fee on your Everyday Access account or Mortgage Offset account waived, but you could also have the establishment fee on a personal loan waived. And if you’re looking to get a Platinum Rewards Visa Credit Card, you’ll be happy to hear that not only will you have the fee waived, but you’ll also benefit from 0% interest on balance transfers for the first 12 months.
This home loan is good for anyone who wants to make their eco-dreams a reality with a discounted home loan rate. If you’re looking to build or buy a home with any of the following certifications, then this loan might just be the right one for you:
7 plus star rating under the Nationwide House Energy Rating Scheme (NatHERS)
7 stars or more rating with the Residential Efficiency Scorecard (this 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.’
You will have to pay a $350 yearly fee to access all the perks that come with this green home loan. It should also be noted that the discounted interest rate only applies for the first five years of the loan, after which it will revert back to the standard variable rate (which will be dependent on your particular loan amount and LVR).
2.70% p.a.
2.50% p.a.
60 Months
Variable
3.01% p.a.
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
$0.00
$0.00
$0.00
$0.00
n/a
$350.00 yearly
$250.00
$150,000
none
none
90.00%
Owner Occupier
Principal & Interest
Weekly, Fortnightly, Monthly
yes - free
yes
yes - free
$0.00
yes
yes
Property must have NatHERS rating of 7+ stars, or Residential Efficiency Scorecard rating of 7+, or a Passive House Certification, or Green Star 8+ Points.
10% off your general insurance premiums, no annual fee and 0% interest for 12 months on balance transfer on Platinum Rewards VISA credit card
none
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.
Bank Australia is a customer owned bank. Formerly bankmecu, Bank Australia has over 130,000 customers which act as shareholders of the bank. It offers a full range of products including home loans, savings, credit cards and loan products, and because its shareholders are its customers, they benefit from lower rate and fees. Bank Australia also invests up to 4% of its profits in various community projects every year.
loans.com.au
Smart Booster Home Loan
1.99% p.a.variable for 12 months and then 2.48% p.a. variable
2.47% p.a.
Homestar
Star Gold Home Loan
1.79% p.a. variable
1.84% p.a.
Bank of Queensland
Fixed Rate
1.94% p.a.
fixed 3 years
2.97% p.a.
loans.com.au
Smart Booster Home Loan
1.99% p.a.variable for 12 months and then 2.48% p.a. variable
2.47% p.a.
Newcastle Permanent
Fixed Rate Home Loan (Premium Plus Package)
1.98% p.a.
fixed 3 years
3.56% p.a.
loans.com.au
Smart Booster Home Loan
1.99% p.a.variable for 12 months and then 2.48% p.a.
2.47% p.a.
Homestar
Star Gold Home Loan
1.79% p.a.
1.84% p.a.
Yard
Variable Home Loan Special
2.09% p.a.
2.12% p.a.
Newcastle Permanent
Fixed Rate Home Loan (Premium Plus Package)
1.98% p.a.
fixed 3 years
3.56% p.a.
Homestar
Star Classic Fixed Home Loan
n/a
n/a
People's Choice Credit Union
Fixed Rate Home Loan (Package)
1.89% p.a.
fixed 3 years
3.03% p.a.
loans.com.au
Smart Booster Home Loan
1.99% p.a.variable for 12 months and then 2.48% p.a.
2.47% p.a.
$0.00
Homestar
Star Gold Home Loan
1.79% p.a.
1.84% p.a.
$0.00
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.
