Commbank Green Loan offer - 0.99% 10 yrs

LScepticalBargainer on 14/05/2021 - 11:14

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.

Home & Garden Home Loan

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Comments

  • spackbace on 14/05/2021 - 11:34
    +2

    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.

  • Muzeeb on 14/05/2021 - 11:35
    +3

    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

    • subywagon on 14/05/2021 - 14:33

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

      • spackbace on 14/05/2021 - 14:51
        +3

        Did you just assume gender on the internet?

      • Muzeeb on 14/05/2021 - 15:19

        So the truth is somewhere in the middle?

        • andrek on 15/05/2021 - 15:45

          More like the truth is out there…

  • orangetrain on 14/05/2021 - 11:38
    +1

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

    • netjock on 14/05/2021 - 15:32

      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

  • Quantumcat on 14/05/2021 - 11:56

    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.

  • Diji1 on 14/05/2021 - 12:05
    -6

    Paying to use money is just a dumb idea unless you're are doing it to make more money than you are losing.

    Most Australian's seem to regard paying to use money as a normal thing for some reason which I assume happened because of news and advertising.

    • Keplaffintech on 14/05/2021 - 13:20
      +1

      what do you mean by 'paying to use money'? do you mean paying to borrow money? A solar system will make more money than it loses in the space of 10 years.

    • netjock on 14/05/2021 - 15:34
      +1

      If you can get decent feed in, paying 1%pa is basically a riskless profit.

      ie. $5k for 6kw of panels. Finance charge is like $50 a year. If you are getting $600 feed in per year, essentially using someone else's capital to pay for it up front. The feed in will pay off the loan over 10 years. It is free electricity if you can use it.

  • teacherer on 14/05/2021 - 13:39

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

    • Keplaffintech on 14/05/2021 - 14:00
      +1

      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.

  • netjock on 14/05/2021 - 15:37
    +1

    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.

    • FimpBARGAIN on 15/05/2021 - 08:50

      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)

      • netjock on 15/05/2021 - 13:31

        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.

        • FimpBARGAIN on 16/05/2021 - 10:39

          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

          • netjock on 17/05/2021 - 10:10

            @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.

  • Seraphin7 on 14/05/2021 - 16:52
    -1

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

    • djones145 on 16/05/2021 - 08:49

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

      • Seraphin7 on 16/05/2021 - 12:59

        or buy from their list of sellers and they pay direct

        So you would pay extra through "approved suppliers".

        • djones145 on 16/05/2021 - 14:35
          +1

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

  • backpaqer on 15/05/2021 - 10:58

    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+.

  • ozbargainsam on 16/05/2021 - 11:01

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

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