Can You Refinance to a Green Home Loan? Yes, Even if Your House Rates Poorly
When people hear "green home loan", they usually picture a brand-new, architect-designed home with solar on the roof and a 7-star certificate in the drawer.
That's not who most of my clients are. Most of them already own their home and are refinancing, renovating, or both. Plenty of them live in older houses that would never top an energy rating chart.
The good news is that you don't need a new build or an impressive rating to refinance onto a green loan. You do need to know which route your home is likely to qualify through, because that changes what you need to show the lender.
Two ways an existing home can qualify
Lenders generally accept one of two kinds of evidence that a home is energy efficient.
The Energy Rating pathway
For an existing home, this means a Home Energy Rating, the NatHERS assessment designed for homes that are already built. An accredited assessor visits, measures the home and gives it a star rating. If the result meets the lender's threshold, the home qualifies on that rating.
Since the Residential Efficiency Scorecard closed in June 2026, the Home Energy Rating has become the main whole-of-home assessment for existing homes.
The Specific Features pathway
Some lenders will qualify a home on particular upgrades rather than an overall rating. Solar panels, a solar battery, heat pump hot water, double glazing and EV charging are common examples. The home doesn't need to hit a star threshold. It needs the right features, with evidence that they're installed.
Each lender decides which features count and how many you need, so the same home can qualify with one lender and not another.
Houses and apartments usually take different routes
Apartments often rate well enough on a Home Energy Rating to qualify on the rating alone. Most free-standing houses score low, so for those I set the rating aside and look at the upgrades individually through the Specific Features pathway.
A low score doesn't rule your home out. It just changes which evidence you'll use. I explain why the two types of home differ in [Why Your House Scored Lower Than an Apartment] (link to new post).
What a green rate is worth on a refinance
A green home loan gives you a discount on the interest rate, either for a set period or for the life of the loan, depending on the lender.
As an example, a 0.30% discount on an $850,000 loan works out to around $163 a month, or about $1,950 a year. That assumes a 6.00% rate before the discount, a 30-year term, and the discount staying in place for the full term. Actual discounts vary by lender, and some apply only for the first few years.
On a refinance, the discount usually applies to the whole loan, not just any extra money you borrow. That's why it can be worth checking even if you aren't planning to borrow more.
Renovate first, refinance after
If your house doesn't qualify today, the order you do things in matters.
Some clients get the best result by doing the upgrades first and refinancing once the work is finished and documented. A heat pump hot water system and a solar installation, for example, might be enough to qualify with a lender that uses the Specific Features pathway. The rate discount then helps offset the cost of the work for years afterwards.
Others are better off refinancing now to fund the renovation, then having the green discount applied once the upgrades are complete. Some lenders allow this, and some don't.
Which order suits you depends on your current loan and which lenders your home is likely to qualify with. That's a conversation worth having before any work starts.
What to have ready
If you're qualifying on a rating, you'll need the Home Energy Rating certificate, with the address matching your loan documents exactly.
If you're qualifying on specific features, gather whatever shows the upgrades are installed. Installer invoices, compliance certificates and product details are the usual starting point. Lenders differ on what they'll accept, so it's worth checking before you start hunting through old emails.
If you're not sure which pathway you're on yet, you don't need anything except a rough list of what your home has and what you're planning.
Find out where your home stands
Whether you live in an apartment with a strong rating or an older house with a low one, there's a good chance a green rate is within reach. I'll look at your home, your current loan and your plans, and tell you which pathway fits and which lenders it qualifies with.
This article contains general information only and does not constitute personal financial or credit advice. Sale price and listing figures are drawn from Domain's Sustainability in Property 2025 report. They describe differences in median prices and are not a guaranteed return on any upgrade. The repayment example is illustrative only. Lender eligibility criteria, green loan discounts and product availability are subject to change. Marisa Hoffenberg is a Credit Representative (No. 537544) of Australian Credit Licence No. 393195. Please consider your own circumstances and seek independent advice before making any financial decisions.