Unpacking the Jargon: Green Loans

Green loans are offered by many Australian lenders to finance residential, automotive, commercial, and personal expenditures.  

To be eligible for a Green Loan the asset must meet specific eligibility criteria.  

For mortgages specifically, we will be talking about purchasing or renovating environmentally friendly homes, often requiring properties to have solar systems or to meet certain energy efficiency standards such as the NatHERS. Loans may have lower interest rates, or other added benefits.  

Borrowers could also take out Green Loans to finance improvements to their properties that will improve energy efficiency or water conservation – such as the installation of solar panels or water-saving systems.  

Lenders will have their own specific criteria for each of these types of loans.  

We can work with you to help you be across those, finding the best solution for your property. One thing to remember, is that just because a lender offers green loans, doesn’t mean they themselves are ‘green’ or ethical – so if that is important to you, do your research first.  

Want to find out more? Reach out to our Green Loans expert Suze Pirreca for a chat!