The home loan helping cover the cost of your solar installation

An Australian-first green initiative will see homeowners receive a discount to their home loan to install a solar energy system, thanks to a new home loan offer from loans.com.au.

The Solar Home Loan is set to offer a 0.6% interest rate discount for five years to eligible homeowners that choose to instal a solar power system that makes a significant impact on the power otherwise used from the grid.

The details – Solar Home Loan/Solar Investor

• Owner-occupiers – 4.63% (5.05% comparison rate)
• Investors – 4.89% (5.31% comparison rate)
• Available up to 90% loan-to-value ratio (LVR)
• Available both to new customers and existing customers who install a solar energy system

According to loans.com.au, on an average home loan of $450,000, this 0.6% discount amounts to “$13,500 in savings over five years, which is more than the upfront cost of a 10kw solar system – the largest commonly available”.  

Solar Home Loan

• Owner Occupied
• Variable
• 10% min deposit

This home loan rewards energy conscious buyers, offering discounted rates on home loans that utilise solar power. No ongoing fees, offset and redraw facilities, extra repayments and the ability to split your loan are just some of the included benefits.

Interest rate p.a.

5.99%

Comparison rate* p.a.

6.51%

More details

FeaturedAustralian Credit Licence: 395219 loans.com.au terms and conditions

Helping to fight the rising cost of living

 This rate discount comes at a time where rising interest rates - led by the Reserve Bank of Australia hiking the cash rate - paired with higher inflation levels, are creating higher mortgage stress levels – particularly amongst younger Australians.

Managing Director Marie Mortimer said: “We know people are mindful of their budgets right now due to the rising cost of living and especially soaring power costs, so we’ve launched a loan which really helps families during what is becoming a very difficult period economically.”

“Our Solar Home Loan will help people cut their mortgage repayments and their energy bills, while also fighting Climate Change by moving them to clean, renewable solar power,” Ms Mortimer said. 

The sharp increase to the cost of energy bills, means that those considering installing solar power could do so to reduce the costs of rising utility bills, and help the environment in the process. Plus, having an energy-efficient home can be an effective way to boost a property’s value.

According to loans.com.au, in the second quarter of 2022 alone, electricity prices increased by as much as $502 annually, on average, in some states. The latest Federal Budget Treasury forecast predicts that retail power prices will increase by 20% nationally, on average, in late 2022, with a further increase of 30% in 2023/24. 

The rise of green banking products

This is the latest in a suite of green banking products to be rolled out in 2022. Recently, Suncorp revealed its new Carbon Insights Account, a transaction account which helps track the carbon emissions of purchases. This then better enables you to understand the impact of your carbon footprint and make more sustainable decisions in the future.

Earlier this year, loans.com.au also announced a competitive new green car loan offering – the lowest rate on the RateCity database at the time. The aim of this rock-bottom interest rate was to reward customers for “going green” and purchasing electric cars through a lower interest rate. It has since won a coveted RateCity Gold Award (2022) for Best Green Car Loan.

On the flip side, Bank Australia announced in August that it would cease funding car loans for new fossil fuel vehicles from 2025, as part of its commitment to achieve net zero carbon emissions by 2035.

Whether you’re considering installing a solar energy system in your new home or making the switch to a hybrid or electric vehicle, there is a growing list of ethical or green banking products for eligible customers with competitive interest rates. If this is an important factor for your home loan comparison, it may be worth considering a lender that rewards sustainable choices.

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