Less mortgage, more moolah: How Amanda saved $1,000 on her home loan
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With the cost of living rising and interest rates giving many of us sleepless nights, it’s no wonder Aussies are on the hunt for clever ways to save a few dollars—especially when it comes to the biggest expense of all: the mortgage.
But what if we told you there’s a little-known way to potentially save almost $1,000 a month on your home loan, simply by making your home more energy efficient?
That’s exactly what Melbourne homeowner Amanda Fung did, and her story could be a game-changer for many of us.
Amanda’s Secret: How Energy Upgrades Can Slash Your Mortgage
Amanda, like many Australians, was used to 'pumping gas' to keep her home warm during those chilly Melbourne winters. But after hearing about the benefits of energy-efficient upgrades, she decided to take the plunge.
She installed a split-system air conditioner, swapped her gas stove for an induction cooktop, and upgraded her hot water system. While these changes cost her several thousand dollars upfront, they made her eligible for a special 'green' home loan with a much lower interest rate.
The result? Amanda shaved a whopping 0.75 percentage points off her mortgage interest rate, saving her nearly $1,000 every month. That’s not just pocket change—that’s a holiday, a new car, or a serious boost to the retirement fund!
What Are Green Loans, and Why Haven’t I Heard of Them?
Green loans are a relatively new offering from some Australian banks, designed to reward homeowners who make their properties more energy efficient. These loans often come with lower interest rates or special discounts, making them a win-win for your wallet and the environment.
But here’s the catch: many Aussies don’t even know these products exist. According to Marisa Hoffenberg, founder of Sustainable Home Loans, the lack of advertising and the sometimes tricky process of proving your home’s energy efficiency have kept these deals under the radar.
'It’s such a huge advantage,' she says, 'but it’s devastating that more people don’t know about the offers.'
How Much Could You Save?
The savings can be staggering. Hoffenberg has seen clients save up to $100,000 in interest over the life of their loan, and some are on track to save $80,000 in just five years. It’s almost a no-brainer—if you’re planning to upgrade your home anyway, why not get rewarded for it?
Also read: Big bank makes $33,000 change to home loans as Aussie buyers weigh impact
What Upgrades Count?
Banks differ in what they’ll accept, but common upgrades include:
- Solar panels and batteries
- Insulation and double glazing
- Split-system air conditioning
- Heat pump hot water systems
- Induction cooktops
- EV chargers
Some banks, like the Commonwealth Bank of Australia (CBA), offer low-interest personal loans for these upgrades, while others, like Bank Australia, have offered discounted mortgage rates for homes that meet certain energy efficiency standards.
The Challenge: Proving Your Home’s Efficiency
One of the biggest hurdles is proving your home is energy efficient. Until now, most energy ratings have only applied to new homes, but that’s set to change.
The federal government plans to expand the Nationwide House Energy Rating Scheme (NatHERS) to existing homes from mid-2025. This should make it much easier for homeowners to get their properties assessed and unlock those juicy green loan discounts.
Also read: Homeowners can save thousands in mortgage thanks to one payment tip
Real-Life Results: More Comfort, Less Cost
Amanda isn’t the only one reaping the rewards. Darcy Dunn, from Geelong, spent five years and about $77,000 upgrading his two-bedroom home with solar panels, double glazing, insulation, and more.
His home’s energy rating jumped from a measly one star to an impressive 7.9 stars, and his electricity usage from the grid dropped by 46%. Not only is his home warmer and drier, but he also qualified for a reduced-interest loan.
What About Renters?
It’s not just homeowners who stand to benefit. State governments are starting to introduce minimum energy efficiency standards for rental properties.
In Victoria, for example, new rules from 2027 will require better insulation, draught-proofing, and efficient heating and cooling in rental homes. This means renters can look forward to more comfortable homes and lower energy bills, too.
Are There Any Downsides?
While the benefits are clear, there are some challenges. Green loans can be harder to access, and the process of getting your home assessed can be confusing or expensive.
Some banks have paused their green loan products due to overwhelming demand, while others have withdrawn them due to low uptake. But experts believe these products will become more common and easier to access as awareness grows and government standards improve.
Read more: Lawsuit reveals widespread misconduct at major lender, puts home loans at risk
Have you made energy upgrades to your home? Did you know about green loans or discounted mortgage rates? Share your experiences, tips, or questions in the comments below—let’s help each other save money and stay comfortable, no matter what the weather throws at us!
But what if we told you there’s a little-known way to potentially save almost $1,000 a month on your home loan, simply by making your home more energy efficient?
That’s exactly what Melbourne homeowner Amanda Fung did, and her story could be a game-changer for many of us.
Amanda’s Secret: How Energy Upgrades Can Slash Your Mortgage
Amanda, like many Australians, was used to 'pumping gas' to keep her home warm during those chilly Melbourne winters. But after hearing about the benefits of energy-efficient upgrades, she decided to take the plunge.
She installed a split-system air conditioner, swapped her gas stove for an induction cooktop, and upgraded her hot water system. While these changes cost her several thousand dollars upfront, they made her eligible for a special 'green' home loan with a much lower interest rate.
The result? Amanda shaved a whopping 0.75 percentage points off her mortgage interest rate, saving her nearly $1,000 every month. That’s not just pocket change—that’s a holiday, a new car, or a serious boost to the retirement fund!
Australian homeowners can access significant savings on their mortgage repayments—sometimes almost $1,000 a month—by making their homes more energy-efficient and securing discounted interest rates or green loans from banks. Image source: Towfiqu Barbhuiya / Unsplash.
What Are Green Loans, and Why Haven’t I Heard of Them?
Green loans are a relatively new offering from some Australian banks, designed to reward homeowners who make their properties more energy efficient. These loans often come with lower interest rates or special discounts, making them a win-win for your wallet and the environment.
But here’s the catch: many Aussies don’t even know these products exist. According to Marisa Hoffenberg, founder of Sustainable Home Loans, the lack of advertising and the sometimes tricky process of proving your home’s energy efficiency have kept these deals under the radar.
'It’s such a huge advantage,' she says, 'but it’s devastating that more people don’t know about the offers.'
How Much Could You Save?
The savings can be staggering. Hoffenberg has seen clients save up to $100,000 in interest over the life of their loan, and some are on track to save $80,000 in just five years. It’s almost a no-brainer—if you’re planning to upgrade your home anyway, why not get rewarded for it?
Also read: Big bank makes $33,000 change to home loans as Aussie buyers weigh impact
What Upgrades Count?
Banks differ in what they’ll accept, but common upgrades include:
- Solar panels and batteries
- Insulation and double glazing
- Split-system air conditioning
- Heat pump hot water systems
- Induction cooktops
- EV chargers
Some banks, like the Commonwealth Bank of Australia (CBA), offer low-interest personal loans for these upgrades, while others, like Bank Australia, have offered discounted mortgage rates for homes that meet certain energy efficiency standards.
The Challenge: Proving Your Home’s Efficiency
One of the biggest hurdles is proving your home is energy efficient. Until now, most energy ratings have only applied to new homes, but that’s set to change.
The federal government plans to expand the Nationwide House Energy Rating Scheme (NatHERS) to existing homes from mid-2025. This should make it much easier for homeowners to get their properties assessed and unlock those juicy green loan discounts.
Also read: Homeowners can save thousands in mortgage thanks to one payment tip
Real-Life Results: More Comfort, Less Cost
Amanda isn’t the only one reaping the rewards. Darcy Dunn, from Geelong, spent five years and about $77,000 upgrading his two-bedroom home with solar panels, double glazing, insulation, and more.
His home’s energy rating jumped from a measly one star to an impressive 7.9 stars, and his electricity usage from the grid dropped by 46%. Not only is his home warmer and drier, but he also qualified for a reduced-interest loan.
What About Renters?
It’s not just homeowners who stand to benefit. State governments are starting to introduce minimum energy efficiency standards for rental properties.
In Victoria, for example, new rules from 2027 will require better insulation, draught-proofing, and efficient heating and cooling in rental homes. This means renters can look forward to more comfortable homes and lower energy bills, too.
Are There Any Downsides?
While the benefits are clear, there are some challenges. Green loans can be harder to access, and the process of getting your home assessed can be confusing or expensive.
Some banks have paused their green loan products due to overwhelming demand, while others have withdrawn them due to low uptake. But experts believe these products will become more common and easier to access as awareness grows and government standards improve.
Read more: Lawsuit reveals widespread misconduct at major lender, puts home loans at risk
Have you made energy upgrades to your home? Did you know about green loans or discounted mortgage rates? Share your experiences, tips, or questions in the comments below—let’s help each other save money and stay comfortable, no matter what the weather throws at us!
