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7+ star homes

What you need to know about applying for a 7+star Clean Energy Home Loan.

Clean Energy Home Loan for 7+ star homes

Buying or building a 7+ star home is one big way you can help to lessen humanity’s impact on our world. With a Clean Energy home loan, you can buy a planet-friendly property to live in, refinance your current 7+ star rated home, or build something new. All at a reduced home loan rate for 5 years.

Making home improvements instead? See the criteria for property upgrade applications.

Who and what it’s for

  • Owner occupiers 
  • Qualifying properties in Australia – check the criteria below
  • Residents in Australia for tax purposes
  • New Bank Australia loans and security only
  • Built after 31 December 2018

Is this product right for you? Find out more

Property criteria

Your property must meet one or more of the below criteria to be eligible to apply for a Clean Energy Home Loan. And just so you know, you will need to provide documentation confirming this. 

The standard eligibility rules also apply before you can take out a home loan.

NatHERS rating of 7 stars or higher

The construction loan feature allows you to draw down on your loan as the build progresses, with interest payments kicking in gradually, as portions of the loan are accessed.

A Nationwide House Energy Rating Scheme (NatHERS) certificate shows the home’s star rating out of 10. If you’re buying an apartment, we look at the rating of the individual apartment – not the building.

What to provide

  • Existing property:

NatHERS certificate completed by a NatHERS-accredited assessor with a rating of at least 7 stars

  • Construction loans:

A NatHERS Certificate as above and a declaration from the homeowner and builder about adhering to the building plans

ACT only: Non-accredited NatHERS certificate with a 7+ star rating plus an ACT Energy Efficiency Rating certificate with the same rating

The ACT has its own system for energy rating certificates, and some ACT energy assessors are licensed by the ACT Government, but not as NatHERS assessors.

What to provide

  • A black-and-white non-accredited NatHERS certificate from a licensed energy assessor, showing a rating of at least 7 stars 
  • An ACT Energy Efficiency Rating certificate completed by the same assessor with the same rating

Passive House certification

This is a voluntary standard for buildings with a healthy indoor environment and a very high standard of energy efficiency. The formal certification is done after the build is finished.

What to provide

  • Existing property:

Passive House certificate by a Passive House certifier

  • Construction loans:

Evidence the home is being built to Passive House standard, with certificate to be provided within 12 months of build completion

Residential Efficiency Scorecard rating of 7+ stars (excluding the impact of solar)

This is a voluntary standard for buildings with a healthy indoor environment and a very high standard of energy efficiency. The formal certification is done after the build is finished.

A Residential Efficiency Scorecard helps households understand the energy performance of their home. It’s completed by a licensed assessor on new or existing homes and shows the home’s star rating out of 10 – both with solar and excluding the impact of solar.

This Scorecard is widely available in Victoria, with some availability in other states and territories.

What to provide

  • A Residential Efficiency Scorecard certificate that shows a rating of at least 7 stars (excluding the impact of solar)

A Green Star Design & As Built score of 8 points or more

This is a voluntary standard for buildings with a healthy indoor environment and a very high standard of energy efficiency. The formal certification is done after the build is finished.

Green Star Design & As Built is a rating system for apartments, scoring different elements. The assessment is organised by developers rather than individual apartment owners. We reference section ‘15 Greenhouse Gas Emissions’ for property criteria.

What to provide

You can contact us to confirm if your planned purchase is on the list of qualifying buildings.

Above: Reece, General Manager of The Sociable Weaver and Bank Australia customer

Customer story

Reece is building sustainable homes

"It’s quite amazing to see the amount of carbon that’s reduced by building a 7.5+ or 8.5+ star home.”

Read more

What if you’re building?

The construction loan feature allows you to draw down on your loan as the build progresses, with interest payments kicking in gradually, as portions of the loan are accessed.

The Clean Energy Home Loan discount applies from when we:

  • review your energy rating information and construction loan declaration 
  • confirm that your build is eligible. 

When you take out a construction loan with Bank Australia, we protect land equivalent to the size of your building lot in our Conservation Reserve in Western Victoria.

Our rates

2021 Mozo experts choice Green Home Loan
See all reviews
2.10
%
p.a.
Best variable rate
LVR <90% or First Home Loan Deposit Scheme
Effective 21 December 2021
2.62
%
p.a.
Comparison rate
Based on a loan of $150,000 for 25 years Fees and charges may apply
Comparison rate warning
View full rates table

What to expect when you apply

You tell us about your situation, including income and debts – either by phone or online.

Allow about 20 minutes

If it looks good on paper, we offer conditional approval and let you know if we need any documentation.

Allow 3–7 days

Once we verify your credit score and financial position, and do a property valuation, you receive formal approval.

Allow up to 10 days

Fees, charges and discounts

Here’s what to expect with our Clean Energy Home Loan. Be sure to factor in related costs like stamp duty, legal fees, building reports, and insurance.
Fee and description
Cost
Establishment fee (existing Bank Australia home loan)
$0
Annual package fee
$350
Monthly fee
$0
Redraw fee
$0
1st valuation fee
$0
Construction progress inspection
$0
Credit card annual fee
$0
Insurance
10% off
Discharge fee
$250 + government fees

See all fees and charges. See insurance fine print for discount conditions.

See home loan features

Loan details and key documents

The details you need to know about our Clean Energy Home Loan.
Once your 5 years are up (3 years for fixed rates) the loan reverts to our Premium Package Home Loan.

Banking done differently

We’re 100% customer-owned, which means you have voting rights. We don’t pay our execs bonuses, which means more funds are used to support people and the planet. And we’ll never use your money (or anyone’s, for that matter) to fund harmful industries like fossil fuels, live animal exports or nuclear weapons.

Why us

Related topics

Money, People & Planet

See more at the Bank Australia blog

Things you need to know

GENERAL ADVICE
  • Any information and advice does not take into account your personal needs and financial circumstances and you should consider whether it is appropriate for you and seek any third party advice you need.
  • Before deciding to apply, we provide and recommend you read our Financial Services Guide.
  • All applications are subject to a credit assessment and approval. Terms and conditions apply. All applicable terms and conditions will be included in our loan offer.
  • Additional fees and charges may be payable – all relevant details will be included in our loan offer.
  • Information and interest rates are current as at the date of publication and are subject to change at any time, at the discretion of Bank Australia Limited.
  • This document does not constitute a contract for finance.

*Comparison Rate. The Comparison Rate is based on a loan of $150,000 for 25 years. Fees and charges may be applicable.

IMPORTANT: The Comparison Rate applies only to the example given. Different amounts and terms will result in different Comparison Rates. Costs such as redraw fees, early repayment fees, and cost savings such as fee waivers, are not included in the Comparison Rate but may influence the cost of the loan.

#Terms and conditions, fees and charges apply. Loans subject to normal lending criteria and approval. Rates apply to new applications received from 21 December 2021 however are subject to change at anytime.

CLEAN ENERGY HOME LOAN

  1. The Clean Energy Home Loan Package variable interest rate of 2.30% p.a. is for Owner Occupiers making Principal and Interest repayments with a Loan to Value (LVR) ratio of less than 90%.
  2. When you qualify for a Bank Australia Clean Energy Home Loan you will receive an interest rate discount on the Clean Energy Home Loan Reference interest rate (currently 2.50% p.a.).
  3. The Clean Energy Home Loan discount applies, for variable rate home loans, for 60 months from the date the loan is settled or in the case of fixed rate home loans, for the length of the fixed rate period. At the end of the discount period the loan reverts to the Clean Energy Home Loan Reference interest rate (currently 2.50% p.a.).
  4. Minimum new borrowings of $10,000 for an Owner Occupied Home Loan.
  5. Available to new borrowers who submit their loan application on or after 21 December 2021;
  6. If a Fixed Rate is selected, then that rate may vary from the date of application anytime up until the date of funding
  7. Offer only available to new and approved credit card applicants who apply for a Bank Australia Platinum Rewards credit card account. This offer which be withdrawn or changed at any time without notice. Offer available in respect of balances transferred from non-Bank Australia credit and store card accounts only. Whilst a balance transfer is owed, interest will not be charged on the balance transfer for 12 months from the date we process it. Interest will be applied at the standard interest rate on any other debits on your account including purchase balances. An interest free period will generally not apply in relation to any relevant purchases made whilst a balance transfer is owing, unless the full amount due is paid the applicable due date. After the balance transfer offer expires, the standard interest rate will apply to any unpaid balance. The interest rate is currently 18.24% p.a. as at 21 December 2021 and is subject to change. Terms and conditions, fees and charges apply.
  8. For construction loans, Bank Australia protects an equivalent amount of land on the Bank Australia Conservation Reserve as is being constructed to help offset the environmental impact of land clearing. Homes constructed on large lots of land such as hobby farms will be offset according to the amount of land occupied by the dwelling.
  9. The Annual package fee of $350 is payable in advance and is non-refundable. The fee is debited to the loan balance on funding, and then annually on the anniversary date of funding. Package benefits cease to apply once the loan is repaid in full. Other fees and charges may be payable. Refer to the Loan Fees schedule available from bankaust.com.au or by calling 132 888 for more details.
  10. Repayment Pause. Loans must be established for a full 12 months and a maximum Loan to Value Ratio of 90% (Family-Pause) or 90% (Eco-Pause) applies. Pausing repayments will result in interest continuing to accrue on the loan, potentially increasing the term of your loan. Full conditions available from Bank Australia.
  11. Redraw is not available during the interest only period of the loan and the amount available for redraw is governed by the terms set out in your Loan Offer.
  12. Insurance. This insurance is issued by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL 234708. Bank Australia ABN 21 087 651 607 AFS Licence No. 238431321 acts as an agent of Allianz and not as your agent. Before making a decision about this insurance, please refer to the relevant Product Disclosure Statement available on 132888 or visit bankaust.com.au. Up to 10% discount applies to Building, Contents and Comprehensive Motor Insurance, and/or standalone building insurance, when you sign up for this home loan package. Minimum premiums apply. Any discounts/entitlements only apply to the extent that any minimum premium is not reached. If you are eligible for more than one, we also apply each of them in a predetermined order to the premium (excluding applicable taxes and government charges) as reduced by any prior applied discounts / entitlements. Discounts may not be applied to the premium for optional covers.