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CBA is launching cheap green loans for home renewables

- February 15, 2021 2 MIN READ
solar panels
Photo: AdobeStock.
The Commonwealth Bank is launching a CommBank Green Loan for its home loan customers to purchase and install renewable technology, offering an interest rate of just 0.99%.

CBA Group Executive Angus Sullivan said the move was part of the bank’s commitment to net zero emissions by 2050.

“The CommBank Green Loan offers an historically low 0.99% p.a. secured fixed rate loan for eligible CommBank customers to fund up to $20,000 in renewables repaid over 10 years with no set up, monthly service or early repayment charges, adding to our already market leading home lending solutions,” he said.

The move places CBA in competition with fintech startup Brighte, which offers green loans of up to $30,000 at 5.89% p.a. (comparison rate 7.03%) repaid over 2 to 7 years. Brighte also has a 0% Interest Payment Plan, which has generated more than $330 million in loans, repaid over five years.

Last year Brighte raised $100 million, led by Grok Ventures, the investment company of Mike and Annie Cannon-Brookes, to expand its business model. Launched five years ago, the fintech has approved more than $600 million in finance for 75,000 Australian households using a network of 2,400+ vendors who use the platform at their point of sale. And unlike the CBA plan, you don’t have to have a mortgage with Commbank to borrow from Brighte.

Customers with an eligible CommBank home loan or investment home loan can use the CBA Green Loan to purchase and install eligible small-scale renewable technology such as solar panels (and invertors), battery packs and electric vehicle charging stations at the property used as security for the existing home loan.

The CommBank Green Loan will start with a pilot in February with national rollout scheduled for May 2021. Customers eligible to participate in the pilot will receive an invitation directly from CommBank to apply for the loan.