Commbank Green Loan offer - 0.99% 10 yrs

Hi All, Received the following from Commbank, was wondering if anyone else had taken this one up or had opinions.

On the face of it this seems like a great deal, although im guessing one of the kickers will be that they lock you in from taking your home loan elsewhere for the term of the green loan - im still trying to understand what the break fees might be, i think it may just be paying out the remainder of the loan.

Introducing CommBank Green Loan.
It's a secured, ultra-low rate loan that eligible CommBank home loan customers can use to make their homes more energy efficient. The CommBank Green Loan is available for products like solar panels, battery packs and hot water systems installed at the property used to secure your existing home loan.

While the rate is fixed for 10 years, you’ve got the flexibility to pay it off sooner with no additional charges.
0.99% p.a.
10 Year fixed rate and Comparison rate^
Minimum loan size $5,000. Maximum loan size $20,000.

and more from their website (https://www.commbank.com.au/home-loans/commbank-green-loan.h...)

Eligible clean energy products
You can use a CommBank Green Loan to buy and install one or more of the eligible clean energy products listed below.

Solar panels with a system size equal to or greater than 6 kilowatts (kW) (and inverter if applicable)
Battery packs with a system size equal to or greater than 5 kilowatts-hour (kWh)
Solar hot water system with a minimum system size equal to or greater than 250 litres (L)
Heat pump hot water system with a system size equal to or greater than 250L
Electric vehicle charging station(s)
Keep in mind, solar panels (and inverters) and battery packs must be installed by a retailer and/or installer approved by the Clean Energy Council. This helps ensure the chosen systems meet all relevant Australian standards.

Related Stores

Commonwealth Bank
Commonwealth Bank

Comments

  • +2 votes

    im still trying to understand what the break fees might be

    While the rate is fixed for 10 years, you’ve got the flexibility to pay it off sooner with no additional charges.

  • +3 votes

    You said

    im still trying to understand what the break fees might be, i think it may just be paying out the remainder of the loan.

    They said

    you've got the flexibility to pay it off sooner with no additional charges.

    I'm saying

    You're likely correct

    •  

      This just looks like a whole of "he said, she said" to me…

      • +3 votes

        Did you just assume gender on the internet?

      •  

        So the truth is somewhere in the middle?

        •  

          More like the truth is out there…

  • +1 vote

    Soon solar panels are going to cost a million. So much cheap money these days! Get in early while you can.

    •  

      Isn't the recommendation that solar exports get an additional charge for access to network infrastructure because the at moment it is paid for by low income households too.

      Link to ABC article

  •  

    If you are a resident of the ACT, the local government is going to be giving out loans with zero interest for projects that convert gas appliances to electricity, or installing solar panels. So if you live there don't take out this loan.

  •  

    Any reason one wouldn't go for this?
    We're with commbank in QLD

    • +1 vote

      I don't think there is a catch. This is a good way for CommBank to lock in customers, as if you wanted to refinance to a different lender you would lose this benefit and have to pay back the loan.

  • +1 vote

    For solar panels definitely worth it.

    Unless you can find a good battery deal / grant otherwise still too expensive to pay off.

    Unless you're a big user vehicle charging maybe not unless it is one of those hybrid solar inverters that have DC charging for EVs.

    •  

      Please elaborate on "batteries are too expensive" logic. Have you looked at brands other than the Powerwall? (which I agree is too expensive and a rip off)

      •  

        Just Google. Plenty of people working number on batteries. Pay back at the moment is around 10 years for batteries which is close to or beyond warranty period. Solar panels is only 6 years.

        Don't forget battery payback is assuming you have solar panels to charge it up. If you don't it would cost even more.

        •  

          I think it depends a lot on how much you need overnight.
          I know for us with a renovated house that has all led lights and gas Hotwater we only need a fraction of the kW hours a night that the Powerwall puts out.
          There are plenty of brands where you can daisy chain 3or4 smaller batteries in a server rack for less than half a Powerwall. If you don't discharge it until you start filling it you essentially never pull from the grid (maybe a few weeks a year in winter).
          Size a system this way and it pays itself off REALLY quickly.
          Anyway, I get frustrated by the "batteries are expensive" argument. It probably only applies to half the people out there and I think installers just want to be able to get in and out in a day with simpler panel only systems. Can't blame them as there margin must be so small, it's just very frustrating.
          Btw my spreadsheet was profitable for us 5yrs ago, I'm sure batteries would be a lot cheaper now

          •  

            @FimpBARGAIN: For those who are following and want to calculate it for yourself here is a link to solarquotes online calculator

            People can plug their own data in and see for themselves.

            I get frustrated by the "batteries are expensive" argument

            They are if you don't have behaviour modification. If you wash your clothes, turn on the dryer and run dishwasher at night would be a problem. It is like flooring a hybrid car at every traffic light. Won't get the results advertised.

  • -1 vote

    Will they check that you spend the money on this stuff? Or do you just have to tell them that's what its for?

    •  

      I was thinking that too. prolly request invoices which they pay.
      or buy from their list of sellers and they pay direct

      •  

        or buy from their list of sellers and they pay direct

        So you would pay extra through "approved suppliers".

        • +1 vote

          yeah, they have to get u somewhere!
          can give u cheap money for nothing

  •  

    This had been around for over 12 weeks. Bank aust also provides discounts on your entire home loan of 0.2% if your house has a nathers score of 7+.

  •  

    Anything close to this a loanless person can take advantage of?