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Green Home Loans in Australia: How Energy-Efficient Homes Can Save You Thousands

Last updated: March 2026

Most Australians know that solar panels save money on electricity. What fewer people realise is that an energy-efficient home can also save you money on your mortgage — sometimes tens of thousands of dollars over the life of your loan.

Green home loans are a genuine and growing part of the Australian lending market. Lenders including Bank Australia, CBA, and Gateway Bank now offer reduced interest rates for properties that meet specific energy efficiency standards. The rate discounts range from 0.10% to 0.40% depending on the lender and the property’s credentials — and when you’re talking about a $700,000 loan over 25 years, that’s a significant sum.

This guide explains what green home loans are, which properties qualify, how much you could save, and how to apply through a mortgage broker.

What Is a Green Home Loan?

A green home loan is a standard home loan product where the lender offers a discounted interest rate in exchange for the property meeting defined energy efficiency criteria. The discount is the lender’s way of rewarding sustainable building practices — and, increasingly, of managing long-term portfolio risk, since energy-efficient homes tend to hold their value better and have lower default rates.

According to a 2026 analysis by property researcher Vanessa Rader, banks are increasingly offering interest rate discounts of 0.10% to 0.25% for properties with strong sustainability credentials, typically requiring 7-star NatHERS ratings or equivalent features. NABERS apartment ratings surged 33% in 2024–25, signalling a broader shift toward sustainability becoming financially material in residential property.

Green home loans are available for purchases, refinances, and construction loans. You don’t necessarily need to build new — some lenders also offer discounts for existing homes undergoing eligible energy upgrades. Take a look at our home loan options to understand the full range of products we work with.

Which Lenders Offer Green Home Loans in Australia?

The green lending market is growing quickly. Here are three of the most prominent lenders currently offering dedicated green home loan products:

Bank Australia — Clean Energy Home Loan

Bank Australia was one of the earliest adopters of green home lending in Australia, backed by a $60 million commitment from the Clean Energy Finance Corporation. Their Clean Energy Home Loan offers a reduced variable or fixed interest rate for properties with a 7-star or higher NatHERS rating. The Eco Plus tier applies to homes rated 7.5 stars or above with solar installed.

The rate reduction applies for 60 months (5 years) on variable loans and for the full 3-year period on fixed loans. After that, the loan reverts to their standard variable rate. There is a $199 annual fee for the Clean Energy Home Loan product. Minimum new borrowings of $10,000 apply.

Gateway Bank — Green Home Loan and Green Plus Home Loan

Gateway Bank offers two green tiers. The Green Home Loan provides at least a 0.15% p.a. discount for properties with a Residential Efficiency Scorecard rating of 4 to 6.9 stars, or for homes that have at least three qualifying environmental features (solar panels, rainwater tanks, double glazing, insulation, EV charging, etc.).

The Green Plus Home Loan offers a minimum 0.25% p.a. discount for homes rated 7 stars or higher under NatHERS or the Residential Efficiency Scorecard, or certified as Green Star Designed or Certified by the Green Building Council of Australia. The Green Plus current interest rate is 5.35% p.a. (comparison rate 5.64% p.a.).

Both products include 100% offset accounts and unlimited additional repayments — important features that not all green products offer.

Commonwealth Bank — Green Loan

CBA’s green offering is structured differently. The CommBank Green Loan is a secured loan (secured against an existing CBA home loan) that enables eligible customers to fund between $5,000 and $20,000 in renewable energy installations — solar panels, battery packs, solar hot water systems, and EV charging stations — at a fixed interest rate of 0.99% p.a. It’s designed specifically for upgrades rather than property purchase, and is available to existing CBA home loan customers with a loan balance of $150,000 or more.

CBA also offers an energy-efficient personal loan at 3.99% p.a. for eligible customers looking to fund smaller-scale upgrades. For homeowners considering refinancing to access a green product, see our refinancing guide.

What Does NatHERS Actually Mean?

NatHERS stands for the Nationwide House Energy Rating Scheme. It’s a star-rating system (0 to 10 stars) that measures how much energy a home needs to heat and cool to a comfortable temperature. The higher the rating, the more thermally efficient the home.

Since October 2022, all new homes in Australia have been required to achieve a minimum 7-star NatHERS rating under the National Construction Code — up from 6 stars previously. A 7-star home typically requires good insulation, energy-efficient glazing, effective ceiling and wall insulation, and thoughtful orientation. A 7.5 or higher rating generally involves additional measures like solar, double glazing, and high-performance ceiling insulation.

Existing homes can also be assessed through the Residential Efficiency Scorecard, which evaluates current performance and identifies upgrade pathways. According to NatHERS, homes meeting the new minimum energy efficiency requirements can save homeowners an average of $183 on annual power bills — and homes with higher ratings save significantly more.

How Much Can You Actually Save?

The savings come from two sources: the reduced interest rate on your loan, and the lower energy bills from living in a more efficient home.

Loan Savings

On a $700,000 loan over 25 years, a 0.25% rate reduction saves approximately $35,000 in interest — depending on your loan balance over time. At 0.40% (the higher end of current green discounts), the saving is closer to $55,000. Even a 0.15% discount translates to more than $20,000 in savings over a standard loan term.

These are rough estimates — your actual savings depend on your loan balance, the discount structure, and how long you hold the loan before refinancing. A broker can model the exact figures for your situation. Our loan comparison guide is also a good starting point.

Energy Bill Savings

The Green Building Council of Australia (GBCA) reports that tenants in Green Star-rated apartments save approximately $870 per year on energy costs. For owner-occupiers in high-performing homes, the savings can be higher — particularly as electricity prices continue to rise.

The combination of a lower mortgage rate and lower energy bills can add up to several thousand dollars per year in genuine household savings.

New Builds vs. Existing Homes: What’s Eligible?

Green home loans apply to both new and existing properties, though the pathways to eligibility differ.

New Builds

Any home built since October 2022 should already meet the 7-star NatHERS minimum — making it eligible for green loan products from Day 1. Homes built to higher standards (7.5 stars or above, particularly all-electric with solar) will qualify for the premium tier products like Bank Australia’s Eco Plus or Gateway’s Green Plus.

Existing Homes

For existing homes, you’ll need a Residential Efficiency Scorecard certificate from an accredited assessor to demonstrate your property’s current rating. If it falls between 4 and 6.9 stars, you may qualify for Gateway’s standard Green Home Loan. If you’re planning upgrades to reach 7 stars or above, some lenders will accept construction plans or a commitment to complete the upgrades within 12 months of settlement.

Retrofit options — solar panels, insulation, double glazing, EV charging infrastructure — can push an existing home into eligibility. Government rebates for solar and battery storage in most states can offset a significant portion of upgrade costs, reducing the net investment required. Our home loan preparation guide covers what you’ll need to have ready before applying.

State Variations in Energy Efficiency Requirements

While the National Construction Code sets the baseline 7-star NatHERS requirement nationally, individual states have added additional requirements.

The ACT has its own EER (Energy Efficiency Rating) system, which Gateway Bank’s Green Plus product accepts as an equivalent to NatHERS for properties in that territory. Victoria has been proactive on electrification, with incentives for removing gas and upgrading to efficient electric systems. Queensland has additional solar and battery rebate schemes that can stack with a green loan product to reduce the cost of reaching eligibility thresholds. Tasmania, with its clean energy grid powered predominantly by hydro, offers distinct advantages for homeowners installing battery storage or EV charging — reducing reliance on grid electricity for lifestyle buyers and investors alike.

Frequently Asked Questions

Do I need a new house to get a green home loan?

No. Several lenders — including Gateway Bank — offer green home loans for existing properties, provided they meet the required energy efficiency rating or have qualifying environmental features. You can also qualify if you’re planning to undertake eligible upgrades within a set timeframe after settlement.

What documents do I need to apply for a green home loan?

Typically you’ll need a NatHERS certificate or Residential Efficiency Scorecard certificate from an accredited assessor, or a statutory declaration confirming your property has the required environmental features. For Bank Australia’s Eco Plus product, you’ll also need evidence of solar installation. Your broker will advise on the exact documentation requirements for the specific lender.

Can I refinance my existing loan to a green home loan?

Yes, provided your property meets the lender’s eligibility criteria. If your home already has a qualifying NatHERS rating or equivalent features, refinancing to a green product could reduce your interest rate and lower your repayments. It’s worth factoring in any break costs on your current loan when calculating whether refinancing makes financial sense.

Are green home loans available for investment properties?

Yes. Both Bank Australia and Gateway Bank offer green home loans for investors as well as owner-occupiers, subject to LVR requirements (typically up to 90% LVR). Investment property buyers looking to include green credentials in their purchasing criteria may find this adds both financial return and long-term asset value.

Ready to Explore Green Home Loans?

Whether you’re buying a new energy-efficient home, refinancing an existing property, or planning a green upgrade, a mortgage broker can identify which lender’s green product suits your situation — and make sure you’re not leaving savings on the table. At Lagos Financial, we work with lenders across the country and can compare green loan products as part of a full market review. Book a complimentary assessment and let’s explore what you could save.