Bank Australia makes home electrification more affordable than ever for everyday Australians

The CEFC is a proud investor in the Bank Australia Clean Energy Home Loan, committing $50 million via the Household Energy Upgrades Fund to finance cheaper loans and deliver more sustainable homes.

Bank Australia media release

Bank Australia’s Clean Energy Home Loan is helping Australians electrify their homes, reduce their impact on the climate and save thousands of dollars a year.

4 March 2025

Bank Australia is helping Australian's transition to all-electric homes with its reduced rate Clean Energy Home Loan, which offers customers thousands of dollars a year in potential savings.

The customer-owned bank has made an industry leading move to update its award-winning Clean Energy Home Loan criteria, which incentivises customers for moving completely off gas, with a reduced interest rate on their mortgage (for up to 5 years), whether you're buying, building or upgrading an energy efficient home. For example, a $500k loan under the Clean Energy Home Loan Renovate offers potential savings of $2,856 a year or $238 on monthly repayments, depending on the loan owing.*

“We wanted to find an ethical bank, especially when it came to lending, and so it was just an incredible bonus that they had a very competitive interest rate,” says Bank Australia customer and first-time homeowner Meg, who electrified her home with the Clean Energy Home Loan and Eco Pause feature. “These products actually made our dream a reality”.

In Australia, residential buildings are responsible for around a quarter (24%) of overall electricity use and around 10% of our total carbon emissions. With more than half (51%) of Australians “very (25%) or fairly worried (26%)” about climate change, there is a clear opportunity for action.

Bank Australia’s Clean Energy Home Loan products have now helped finance nearly 500 green homes across Australia. The bank’s Head of Impact Management, Jane Kern says: “This collective action is building momentum for wider scale impact and a just transition, where the journey to clean energy is financially feasible and accessible for as many people as possible.”

Meg and Pat are among those living out the benefits of building a climate resilient and cost effective home, after transitioning their Geelong home entirely off gas in just one year, installing each new electric product incrementally, as they could afford them. “We wanted to invest in the longevity of the house by future-proofing it, while reducing our fossil fuel footprint and ensuring we would have much cheaper energy bills well into the future,” says Meg.

During their journey, Meg and Pat utilised government rebates to help them install a solar system, hot water heat pump, reverse cycle air con, induction cooktop and a PowerPal energy monitoring system. Meg says Bank Australia’s Clean Energy Home Loan and Eco Pause feature — which lets customers take a break from their mortgage repayments for three months (or halve them for six) and redirect their money to eco-upgrades — was instrumental in helping them transition to a healthier home with no gas bills.

In addition to helping reduce household emissions, getting a home off gas may have health benefits and research by Environment Victoria shows that Aussies can save thousands in the process. In four scenarios for Victoria, electric heating is either cheaper upfront or pays for itself in bill savings in less than one year. For the quarter of homes in Victoria that already have gas heating and split systems, it finds that decommissioning your gas heater and using split systems to heat and cool could save between $999 to $2,215 per year, depending on the location and age of your home.

Kern believes that helping Australians transition to all-electric homes is a critical step towards decarbonising the Australian economy and an important part of reaching Bank Australia’s goal of net zero by 2035 — the most ambitious net zero target of any Australian bank.