Green Glean
  • There are eight B Corp certified banks in Australia, however that doesn't mean they necessarily offer discounts on green finance products.
  • Many other banks and lenders offer discounted loan rates for if you're buying an electric vehicle, an energy-efficient home, or if you're buying energy efficient products such as solar panels.

Saying you’re ‘green’ is a vague term and means different things to different people. For example, nuclear might be considered green by some while to others the potential risks of it are too great. The regulators are cracking down on it too, penalising companies for ‘greenwashing’ i.e. false claims about their eco-friendliness.

So, where do you start? One way to look at it is looking at banks that are ‘Certified B Corp’. B Corp certified companies are notarised by non-profit organisation B Lab and hold businesses accountable for their impacts on the environment, how they treat employees, and how they give back to the community.

  • Companies are rated on a ‘B Impact’ score, with 80 or higher needed for B Corp certification; the median score for ordinary applicants is currently 50.9.

B Corp certification is quite nuanced and detailed, and the full details can be found on bcorporation.net. Only a few brands in Australia have achieved the certification out of more than 100 banking institutions. They are:

  1. Australian Mutual Bank

  2. AWA Alliance Bank

  3. Bank Australia

  4. BankVic

  5. Beyond Bank

  6. People’s Choice Credit Union

  7. Summerland Bank

  8. Teachers Mutual Bank

You might notice a common theme among these banks; they are all customer-owned.

Compare Green Home Loans

Plenty more banks and lenders offer green home loans. Usually to qualify for a lower-rate green home loan, your home must have a ‘NatHERS’ rating of 7 or higher and have green features.

Many institutions, if you have a home loan with them, also offer low- or zero-interest personal loans attached to the mortgage for financing green features such as solar panels.

See More: Green Home Loans

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Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
5.99% p.a.
6.51% p.a.
$2,396
Principal & Interest
Variable
$0
$530
90%
  • Low rate home loan with added benefits, Offset sub-account available at no added cost
  • Save thousands & make an environmentally conscious choice on your loan for homes less than 12 months old
  • Get a 7.0 star NatHERS rating or higher for up to 0.84% discount on your variable rate home loan T&Cs apply
5.88% p.a.
6.38% p.a.
$2,367
Principal & Interest
Variable
$350
$0
90%
5.95% p.a.
6.23% p.a.
$2,385
Principal & Interest
Variable
$299
$0
80%
  • Immediate cashback upon settlement
  • $2000 for loans up to $700,000
  • $4000 for loans over $700,000

More details
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) repayments. All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for a 30 year term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. For Interest only loans – the monthly repayment figure is applicable only for the interest only period. After the interest only period, your principal and interest repayments will be higher than these repayments. For Fixed rate loans – the monthly repayment is based on an interest rate that applies for an initial period only and will change when the interest rate reverts to the applicable variable rate.

The Comparison rate is based on a secured loan amount of $150,000 loan over 25 years. WARNING: These comparison rates apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees together with costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products. Rates correct as of . View disclaimer.

1. Australian Mutual Bank

Australian Mutual Bank has been B Corp certified since March 2022, and has been providing banking services since 1953. It has a B Impact score of 90.9. The institution offers a couple of green product lines:

  • Green Car Loan: A product for hybrid and electric vehicles with terms up to seven years, and a vehicle age up to five. Borrow up to $100,000.

  • Green Personal Loan: A product for installing green additions around the home such as solar panels and energy-efficient hot water systems. The loan is paid directly to the provider of the green product.

2. AWA Alliance Bank

AWA was founded in Geelong in 1969, and achieved B Corp certification in September 2018. AWA has a current B Impact score of 104.6.

In late September 2023 it explored a merger with Beyond Bank, also part of this list. The board unanimously agreed to the move, and is subject to member approval.

3. Bank Australia

Bank Australia is perhaps one of the better known ‘green’ banks, and is the fourth-largest customer-owned bank in Australia with more than $12 billion in assets.

Bank Australia started out in 1957 as the CSIRO Co-operative Credit Society and is the result of mergers with 71 other credit unions and co-operatives. It became B Corp certified in June 2020 and has a B Impact score of 104.2, and is 100% carbon neutral. It offers a couple green product lines:

  • Clean Energy Home Loan: Discounted home loan for green-rated homes (7 stars NatHERS rating or better). Also has a repayment pause feature for if adding green features.

  • Green Car Loan: Discounted rates for hybrid or electric vehicles. Terms of up to seven years.

4. BankVic

Founded in 1974, BankVic achieved B Corp certification in December 2020 and has a B Impact score of 80.2. Membership is restricted to: members of a police force; persons involved in emergency services, health work, or the government departments; or immediate family of qualifying BankVic members

5. Beyond Bank

Beyond Bank is Australia’s fifth-largest customer owned bank with more thaan $12 billion in assets. It achieved B Corp certification in December 2015, and has an impact score of 146.7; it is the oldest member and highest-scoring on this list.

6. People’s Choice Credit Union

Adelaide-based People’s Choice is, alongside its merger partner Heritage Bank, the largest customer-owned bank in Australia. It achieved B Corp certification in August 2022, and has an impact score of 83.3. It offers a discounted-rate green car loan for those who purchase an electric or hybrid vehicle.

7. Summerland Bank

Lismore NSW-based Summerland was certified B Corp in March 2023 and has an impact score of 95.9. It has a couple of green product lines:

  • Eco Home Loan: A discounted rate for environmentally-sustainable homes. You will need to discuss with Summerland to see if your home qualifies.

  • Eco Personal Loan: A discounted rate for making environmentally-friendly additions to the home such as solar panels.

  • Eco Car Loan: A discounted rate for the purchase of hybrid or electric vehicles.

8. Teachers Mutual Bank

Teachers Mutual and its subsidiaries Firefighters Mutual, Health Professionals Bank, UniBank, and Hiver are part of the group that makes up Australia’s sixth-largest customer-owned bank. It became B Corp certified in January 2022 and has a B Impact score of 102.4.

Compare Green Car Loans

Many lenders offer green car loans these days. To qualify you usually must have a plug-in hybrid or electric vehicle. The discounts on green car loans can often be generous, sometimes 1 percentage point cheaper than regular car loans.

See More: Green Car Loans

Update resultsUpdate
Filters
LenderCar LoanInterest Rate Comparison Rate* Monthly Repayment Interest Type Vehicle Type Maximum Vehicle Age Ongoing Fee Upfront Fee Total Repayment Early Repayment Instant Approval Online Application TagsFeaturesLinkCompare
5.99% p.a.
6.51% p.a.
$913
Variable
$0
$530
$32,851
  • Low rate home loan with added benefits, Offset sub-account available at no added cost
  • Save thousands & make an environmentally conscious choice on your loan for homes less than 12 months old
  • Get a 7.0 star NatHERS rating or higher for up to 0.84% discount on your variable rate home loan T&Cs apply
5.88% p.a.
6.38% p.a.
$911
Variable
$350
$0
$32,797
5.95% p.a.
6.23% p.a.
$912
Variable
$299
$0
$32,831
  • Get the option to choose to reduce your regular payment amounts if you opt for balloon payment
  • Available for purchasing new and demo vehicles
  • $5,000 to $150,000 loan amount
  • Required: Good credit history, stable employment history. Aus citizenship or PR.

More details
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) repayments. All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here.

Monthly repayment figures are estimates only, exclude fees and are based on the advertised rate for a 30 year term and for the loan amount entered. Actual repayments will depend on your individual circumstances and interest rate changes. For Interest only loans – the monthly repayment figure is applicable only for the interest only period. After the interest only period, your principal and interest repayments will be higher than these repayments. For Fixed rate loans – the monthly repayment is based on an interest rate that applies for an initial period only and will change when the interest rate reverts to the applicable variable rate.

The Comparison rate is based on a secured loan amount of $150,000 loan over 25 years. WARNING: These comparison rates apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees together with costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates are not calculated for revolving credit products. Rates correct as of . View disclaimer.

Image by Towfiqu Barbhuiya on Unsplash

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Harrison Astbury
Harrison Astbury
Editor and Financial Analyst

Harrison is InfoChoice's editor and market commentator. With years of experience at some of Australia's largest comparison sites and media organisations, Harrison is passionate about all things banking.

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