The new home loan offers a 0.60% p.a. (60 basis point) interest rate discount for five years to borrowers who install a qualifying solar power system.
To be eligible, it must be large enough to make a real impact on the power it takes from the grid.
On an average home loan of $450,000, this 0.60% discount equals $13,500 in savings over the five years.
This is more than the upfront cost of a 10kWh solar system - the largest commonly available.
The solar home loan currently starts at an interest rate of 4.63% p.a. for owner occupiers and 4.89% p.a. for investors, and is available for loans up to 90% LVR.
New and existing loans.com.au customers who install a solar energy system are able to apply.
Loans.com.au Managing Director Marie Mortimer said the new solar home loan has come at the right time with higher interest rates, inflation, and an unprecedented increase in power bills beginning to take their toll on homeowners.
“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,” Ms Mortimer said.
“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.”
The solar home loan was developed with the support of the Federal Government’s Clean Energy Finance Corporate (CEFC).
Since April, Aussies are forking out an average of $300 more for electricity, with experts anticipating a rise of at least another 35% throughout 2023.
See Also: How you can increase your home value by up to 10% with sustainable features
In the interests of full disclosure, Savings.com.au is an associate of loans.com.au and Firstmac.
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Building or buying an energy-efficient home? This table shows some of the lowest interest rates in the market for 'green' home loans.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.99% p.a. | 6.44% p.a. | $2,995 | Principal & Interest | Variable | $0 | $530 | 90% |
| Disclosure | |||||||||||
5.84% p.a. | 5.89% p.a. | $2,947 | Principal & Interest | Variable | $null | $null | 60% | |||||||||||||
5.82% p.a. | 5.82% p.a. | $2,940 | Principal & Interest | Variable | $0 | $0 | 80% | |||||||||||||
5.84% p.a. | 5.89% p.a. | $2,947 | Principal & Interest | Variable | $0 | $500 | 60% | |||||||||||||
5.68% p.a. | 6.26% p.a. | $2,896 | Principal & Interest | Variable | $350 | $0 | 90% | |||||||||||||
5.85% p.a. | 6.14% p.a. | $2,950 | Principal & Interest | Variable | $299 | $0 | 80% | |||||||||||||
5.44% p.a. | 6.26% p.a. | $2,820 | Principal & Interest | Fixed | $350 | $0 | 90% | |||||||||||||
6.14% p.a. | 6.85% p.a. | $3,043 | Principal & Interest | Variable | $0 | $720 | 90% | |||||||||||||
7.64% p.a. | – | $3,544 | Principal & Interest | Variable | $25 | $0 | 70% | |||||||||||||
6.19% p.a. | 6.53% p.a. | $3,059 | Principal & Interest | Variable | $0 | $530 | 90% | 90% LVR |
| Disclosure |
Image by Watt A Lot via Unsplash
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