Lenders step up competition in green finance
Online lender loans.com.au cut its green home loan rates by 20 basis points, while Bendigo Bank cut its green personal loan by 480 basis points.
loans.com.au has reduced all of its green loans by 20 basis points:
- Green construction loan: Now 1.88% per year (comparative rate of 2.33% per year*)
- Green mortgage P&I variable: Now 1.88% per year (comparative rate of 2.30% per year*)
- Green Inv construction loan: Now 2.39% per year (comparative rate of 2.84% per year*)
To benefit from a green loan, borrowers must have their home qualified by the “NatHERS” rating system and obtain a score of at least 7/10.
This rating encompasses the design of the house, the construction materials and the climate where it was built.
Loans.com.au managing director Marie Mortimer said these were the lowest green mortgage rates in the country.
“Our green home loan rebates and green building loans will save Australian families thousands of dollars and reward them for choosing to build or buy a more environmentally friendly, energy-efficient home,” said Mrs Mortimer.
“Borrowers simply need to show us the home’s 7-star NatHERS rating from an accredited appraiser, which is usually always included in the construction plan for all new buildings, and the application will go through our usual approval process.
“The savings you get on your home loan by choosing to go green could easily cover all the costs of going for an eco-friendly home.”
An example of some of the green home loans for homeowners is shown in the table below.
Basic criteria: a loan amount of $400,000, variable, fixed, principal and interest (P&I) real estate loans with an LVR (loan-to-value) ratio of at least 80%. However, the “Compare mortgages” table allows calculations to be made on the variables selected and entered by the user. All products will list the LVR with the product and price list which is clearly published on the product supplier’s website. Monthly repayments, once the basic criteria are modified by the user, will be based on the advertised prices of the selected products and determined by the loan amount, repayment type, loan term and LVR as entered by the user. user/you. *The comparison rate is based on a loan of $150,000 over 25 years. Please note: this comparison rate is only true for this example and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate. Rates correct as of February 24, 2022. See disclaimer.
Bendigo Bank cuts rates on green personal loans
Bendigo Bank has reduced rates for unsecured and secured personal loans.
Green unsecured loans have been reduced by 480 basis points, or 4.8%, and are intended for the purchase of solar panels, gray water treatment systems, solar batteries, etc.
The unsecured rate is now 6.99% per annum (comparative rate of 8.01% per annum*).
At the same time, the guaranteed rate has been reduced by 180 basis points, or 1.8%, and is designed for the purchase of a “green” vehicle emitting less than 130 g of CO2 per kilometre.
The guaranteed rate is now 4.99% per annum (comparative rate of 5.35% per annum*).
Loan terms are available between one and seven years.
In the interest of full disclosure, loans.com.au and Savings.com.au are both associates of Firstmac.
Looking for a new car? The chart below shows green car loans with some of the lowest interest rates on the market for low-emission vehicles.
Basic criteria: fixed and guaranteed car loans for “low-emission” cars. Data accurate as of September 1, 2020. Rates based on a $30,000 loan for a five-year loan term. Products sorted by advertised price. Refunds are calculated based on advertised rates. *The comparison rate is based on a loan of $30,000 over 5 years. Please note: this comparison rate is only true for this example and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate. Rates correct as of February 25, 2022. See disclaimer.
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