Why not make green upgrades to your home with a personal loan?

A personal loan was used to install solar panels on a home

Some lenders are offering unsecured personal loans at a lower rate to homeowners who want to make sustainable home improvements, according to QBE’s Australian Housing Outlook 2022-2025.

With sustainability becoming an increasingly popular choice in property construction, green upgrades like a rooftop solar system can be made in existing homes too.

Something like an energy efficient hot water system could cost you about $2,500 - $7,000 to set up, excluding any installation fees. While costs can be high on this type of system, many people say it’s possible to save on your energy bill over the long-term. 

But if the green change you’re keen on doesn't currently fit your budget, there are options to help cover the cost. One such way is with a personal loan

Personal loans to make sustainable home upgrades

A man is standing with a cup of coffee in his home after making green upgrades with a personal loan

Yes, most green upgrades to your home can be made with a personal loan, depending on the cost. 

The good thing about a personal loan is that you don’t have to worry about paying it back all at once, but in instalments. Plus, as you make repayments it’s an opportunity to build your credit score too.

This means your solar panels might not only save the planet and your wallet, but could help any future loan application as well.

Just bear in mind that you can usually expect to pay interest in addition to your original loan amount. For instance, if you borrow $7,000 for 3 years at an interest rate of 11.85% p.a., your monthly repayments would be about $232 with the interest you’ll pay over the course of the loan being roughly $1,352. Something to think about for the budget.

Of course, there are small green upgrades that can be made such as a small rainwater tank, and in this case you could potentially get a smaller loan over a shorter term.

Unsure how much you’ll need to pay in interest? You can play around with the numbers by using a loan repayments calculator to figure out what will work best for you.

As there are a lot of lenders in the market, it’s a good idea to compare different rates to find one that fits your situation.

Compare personal loan options

Keen to make your sustainable upgrades happen? Check out some of the best personal loans that our experts at Mozo have tracked this month, or browse more options below!

Personal loan comparison table

Mozo may receive payment if you click the products below. We don’t compare the entire market, but you can search our database of 247 personal loans.
Last updated 23 July 2024 Important disclosures and comparison rate warning*
  • Mozo Expert Choice Badge
    Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    6.75% p.a.to 26.95% p.a.
    6.75% p.a.to 26.95% p.a.based on $30,000
    over 5 years

    Borrow up to $50,000 unsecured. Perfect if you earn more than $22,100 p.a. and have good to excellent credit. Multi-year winner of Mozo’s Experts Choice Unsecured Personal Loan Award, 2021, 2022, 2023 & 2024^'

    Repayment terms from 2 years to 7 years. Representative example: a 5 year $30,000 loan at 6.75% would cost $35,430.23 including fees.

    Compare
    Details
  • Mozo Expert Choice Badge
    Low Rate Personal Loan

    Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 8.48% p.a.
    7.19% p.a.to 8.84% p.a.based on $30,000
    over 5 years

    Competitive low rates for borrowers with excellent credit on 1-7 year loans from $2,001 up to $75,000, plus free extra repayments. Winner of Mozo's Experts Choice Excellent Credit Unsecured Personal Loan 2024 and Excellent Credit Secured Personal Loan 2024 awards ^. Min. income of 25k after tax, to apply.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
    Details
  • Unsecured Personal Loan

    Fixed

    interest rate
    comparison rate
    Monthly repayment
    5.76% p.a.to 24.03% p.a.
    6.55% p.a.to 24.98% p.a.based on $30,000
    over 5 years

    Fast, easy and 100% online, this is a low cost loan with no ongoing fees or extra repayment penalties. It's perfect for savvy borrowers with great credit. If you’re over 18 and earn above $30,000, you could qualify (other eligibility criteria may apply).

    Repayment terms from 3 years to 7 years. Representative example: a 5 year $30,000 loan at 5.76% would cost $35,173.52 including fees.

    Compare
    Details
  • Holiday Loan

    Excellent Credit

    interest rate
    comparison rate
    Monthly repayment
    6.57% p.a.to 8.48% p.a.
    7.19% p.a.to 8.84% p.a.based on $30,000
    over 5 years

    Travel the globe with competitive low rates for borrowers with excellent credit on 1-7 year loans from $2,001 up to $75,000, plus free extra repayments. Winner of Mozo's Experts Choice award for 2024 ^. Min. income of 25k after tax, to apply.

    Repayment terms from 1 year to 7 years. Representative example: a 5 year $30,000 loan at 6.57% would cost $35,528.12 including fees.

    Compare
    Details
  • Express Personal Loan

    Secured

    interest rate
    comparison rate
    Monthly repayment
    14.95% p.a.to 27.95% p.a.
    29.30% p.a.to 42.8% p.a.based on $10,000
    over 3 years

    Access fast finance on loans from $3,000 to $25,000 with a Jacaranda Finance Personal Loan. Terms from 25-48 months. Check if you qualify with no impact on your credit score. Enjoy a speedy, online approval.

    Repayment terms from 2 years to 4 years. Representative example: a 3 year $10,000 loan at 14.95% would cost $14,324.71 including fees.

    Compare
    Details

* WARNING: The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a personal loan. The comparison rates displayed are calculated based on a loan of $30,000 for a term of 5 years or a loan of $10,000 for a term of 3 years as indicated, based on monthly principal and interest repayments, on a secured basis for secured loans and an unsecured basis for unsecured loans. 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.

^See information about the Mozo Experts Choice Personal Loan Awards

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