How to turn your eco-friendly upgrades into a reduced home loan rate

How one all-electric home renovation unlocked a reduced mortgage rate

When retired teachers Heather and Pete bought their beachside unit nine years ago, they knew they wanted to reduce their environmental footprint while making the home comfortable and efficient.

Over the years, they upgraded to double-glazed windows, split system heating and cooling, and solar panels.

In late 2025, they planned their final round of upgrades: replacing their gas cooktop with induction and switching to an electric hot water heat pump.

"From deciding to do it to having everything installed was around four months," says Pete.

The apartment is noticeably more comfortable for it.

"Now we don't even have to have the heating on for very long before it's nice and cosy on a cold morning," says Heather.

With their home now fully gas-free, Heather and Pete became eligible for a reduced home loan rate through Bank Australia’s Clean Energy Home Loan Renovate.

What is the Clean Energy Home Loan Renovate?

The Clean Energy Home Loan is a loan designed to provide a reduced rate for properties that meet energy efficiency and all-electric criteria.

The recently-relaunched Renovate pathway is for homes that have already had eligible upgrades made, as opposed to the New Build pathway, which supports the construction of a new all-electric home.

Eligible customers then receive a reduced variable rate for 5 years from settlement, or a reduced rate for a three-year fixed period.

The loan is available to owner occupiers and investors, including existing Bank Australia customers and customers coming from other lenders.

Because eligibility is assessed based on upgrades already completed, the property owners need to demonstrate changes were made up to 18 months prior to applying.  

Find out more about the Clean Energy Home Loan Renovate, including interest rates and eligibility criteria.

The 18-month renovation window: What it means for borrowers

To be eligible, the property must be all electric, with no gas connected, and the eligible upgrades must have been completed within the 18 months prior to your loan application.

That 18-month pre-application timeframe matters for two reasons:

• If you’ve already made upgrades to your home in the past year and a half, you may already qualify, even if you’ve never heard of the Clean Energy Home Loan until now.

• If you’re currently planning upgrades, the clock starts when your first eligible upgrade is installed.

Calculate your home loan borrowing power to see how much you could save.

Which home upgrades qualify for the Clean Energy Home Loan?

Eligible upgrades include:

• Battery storage

• Electric hot water system (including heat pumps)

• Electric heating and cooling (such as reverse cycle split systems)

• Induction cooktop

• Electric vehicle (EV) charger

• Insulation

• Double-glazed windows

• Pool pump

• Ceiling fans

Planning to put an EV in the garage alongside your new charger? Read our guide on how electric vehicle car loans work in Australia to see if your car qualifies for a lower rate.

How to apply

Whether you’re refinancing with Bank Australia or joining from another lender, the process starts with checking the eligibility criteria on the Clean Energy Home Loan Renovate page.

You’ll need to provide evidence that your eligible upgrades were completed within the 18 months prior to your application, typically invoices or installer certificates.

Not sure where to start? Bank Australia's Electrify Your Home tool, powered by BOOM! Power, can help you work out which upgrades will have the biggest impact.

Make the most of the improvements you’ve already made

For Heather and Pete, the upgrades have changed the way they live in their home.

“We do tend to live a bit more mindfully now, trying to use our appliances when the solar panels are getting sun.  

“But that’s been a pretty easy adjustment to make,” says Pete.

If you’ve made similar changes to your home in the last 18 months, it could be worth finding out more.

Check out all the Clean Energy Home Loan Renovate features.

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