What you need to know about CommBank's Green Home Loan Offer

By Evlin DuBose · · 2 min read
Fact Checked
A fancy modern house with a green lawn.
Photo by R Architecture on Unsplash.

Last year, Commonwealth Bank introduced a green home loan offer, which rewards new and existing customers for reducing their dwellings’ environmental footprint.

The Green Home Offer promises lower interest rates for customers whose homes meet certain sustainable conditions, such as having a certified Green Star Home , or satisfying the following criteria:

  • Nationwide House Energy Rating Scheme (NatHERS) = 7 stars or greater.
  • Electric cooking/heating instead of gas
    Heat pump hot water system.
  • Solar panels producing minimum energy outputs*.

*Minimum energy requirements for solar size relative to size of the house:

  • Up to 150m2 = 5.5kWe
  • 150 - 250m2 = 7.5kWe
  • 250m2+ = 10kWe

Alternatively, customers can present evidence showing their home is a Green Building Council Australia Green Home Standard certified build.

Customers whose eco-friendly homes make the cut could enjoy a standard variable late as low as 4.99% p.a. (5.39% p.a. comparison rate*) – one of the lowest available options tracked by Mozo.

This will be for owner-occupiers making P&I repayments with a Wealth Package mortgage and a deposit of at least 20%.

Building a green home for the future

A model factory spewing flowers and leaves on a blue background.

Smaller lenders have offered green home loans to environmentally conscious Aussies for a while now. However, this launch marks a critical shift in the big bank’s attitude towards sustainability and climate change action.

“We want to reward new and existing customers [...] investing in homes that are efficient, comfortable, and healthier for them and the environment,” said CommBank’s executive general manager of home buying, Dr. Michael Baumann.

“We expect all residential homes to be built to these standards over the coming years as we move towards a net zero future.”

CommBank made the announcement in partnership with the Green Building Council of Australia (GBCA), who lauded the bank’s new future-minded mission, and has been supported with a further $125 million in funding by the Clean Energy Finance Corporation (CEFC).

RELATED: Sustainable and energy-efficient home features

By raising awareness and providing ways to ease both living costs and environmental impact, CommBank sets a new precedent in green finance for major Australian banks.

Looking to save money and the environment? Compare green home loans on offer.