Ethical lending
Build a Brighter Future for You, and the Earth
Access finance solutions you can feel good about.
Planet-friendly Lending Solutions
Ethical lending is more competitive than ever, which means you can secure finance in a way that meets all your needs.
You have the power to vote with your wallet to ultimately put pressure on big companies to divest from fossil fuels and other industries that harm people and our planet.
Pretty cool. huh?
Ethical Lending, Anyone?
Never has there been a better time to consider the importance of who you bank with. Have you ever asked yourself if your bank is Ethical or Green and what impact your banking decisions have on the environment? Although ethical banking may not be the first priority that comes to mind when you’re looking for a home loan, now’s a great time to start thinking about it. A socially responsible lender can reduce our carbon footprint and, at the same time, many lenders are finding that it creates a sustainable business model for their shareholders, and a positive experience for homeowners looking for a mortgage.
That’s win-win in our eyes!!
Values-led
An ethical lender is socially responsible and practices values-based banking, promoting a sustainable future.
Sustainable
An ethical lender does not lend money to fossil fuel companies and the coal or gas sectors.
People over profit
Ethical lending has operations which do not extend to deforestation, animal cruelty, and weapons.
So How Big is the Problem?
Our friends at Market Forces have researched the extent of the problem, and – more promisingly – highlighted just how many banks don’t support fossil fuel industries.
Billion dollars loaned to fossil fuel companies between 2016 and 2020 by the Big 4 banks
Banks in Australia that haven’t loaned to fossil fuel companies since 2016
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Frequently Asked Questions
Learn about ethical lending and what it means for you
How do I find out which banks are ethical or environmentally friendly?
There are a range of resources you can rely on to understand whether the bank you are using or considering using supports the things that matter most to you.
The best of these is Stellar Finance Group! We have a range of lenders available who offer ethical lending options and as a business, we choose not to invest in polluting or unethical industries.
There are also a range of lenders who offer “green” loans or products. This means the bank itself might still be involved in the fossil fuel and other unethical industries. Despite this, they are offering options for consumers to invest in renewable energy directly or through the purchase of renewable energy assets.
Why does it matter?
Ethical lending extends beyond the rate and repayments.
It connects you with the values you hold and what matters most to you. If the interest you pay on loans is invested according to the banks interests and these differ from your own, then we understand this is a disconnect for you and one you may not feel good about.
We can help those interests align by sourcing lenders that invest according to your key beliefs.
We are the conduit between our customers and sourcing funds they can feel good about.
What can I do?
If you feel very passionate about ethical finance, then where you put your money matters.
This applies to both your savings and investments, along with who you borrow from. So, if you want to support an ethical bank then the things you can do include:
– Moving your savings and transaction accounts across to an ethical bank.
– You can ensure your superannuation is invested with an ethical fund too.
– Using an ethical lender for your personal lending needs such as credit cards and home loans – this is where we come in!
I'm ready to take action. Now what?
If you want to feel good about your finances, we have a range of lenders on our panel who are environmentally and ethically minded just like you.
If you’d like to look at home loan options from an ethical bank and not compromise on quality, rate or service, then get in touch today. We have got you sorted.
Please give us a call on 7900 9305 or book a meeting today to see how we can help.
Why Use a Stellar Finance Group Broker?
Having access to an experienced mortgage broker will enable a thorough review of your assets, liabilities, income and expenses independent of your ex-partner. It will equip you with a solid understanding of what you can and can’t afford before you go in to negotiate.
Lisa Bridgett, our Principal Broker will help you navigate this process. She is an expert mortgage broker who’s excited to help people reach their goals in a way that they can feel good about.
- Assess your needs and income upfront
- Calculate your borrowing capacity and what you can afford
- Identify best lender option that suits your unique situation
- Manage the end to end refinance process
What Makes a Home Loan Ethical?
An ethical home loan is about more than securing finance for a property. For borrowers who care about environmental and social responsibility, it can also mean considering how their chosen lender operates and where that lender directs its financing.
Some Australian banks and financial institutions publish policies addressing fossil fuel exposure, environmental risks, social responsibility and responsible business practices.
However, the term ethical lender does not have one universal definition that guarantees every institution meets the same standards.
What matters most may depend on your own priorities, whether that means climate-related lending policies, environmental commitments, social impact or greater transparency.
At Stellar Finance Group, we can help you explore home loan options while taking your lending preferences into account alongside affordability, loan features and eligibility.
What to Look for in an Ethical Mortgage Lender
- Publicly available environmental and social policies
- Clear information about financing activities and industry exposure
- Transparency about fossil fuel lending commitments
- Responsible lending and customer treatment practices
- Home loan rates, fees and features suitable for your circumstances
- Lending criteria that align with your financial position
How to Compare Ethical Mortgage Lenders in Australia
Choosing an ethical lender involves looking at both the lender's policies and the practical terms of the home loan.
A lender's environmental commitments may be important to you, but you should also understand the financial implications of the mortgage before making a decision.
Environmental Lending Policies
Review publicly available information about the lender's approach to fossil fuels, climate-related risks and financing activities.
Where possible, distinguish between broad sustainability commitments and specific lending restrictions.
Interest Rates and Loan Costs
Compare interest rates, applicable comparison rates, ongoing fees, establishment costs and other relevant charges.
An ethical preference should be considered alongside the long-term cost and suitability of the loan.
Loan Features and Flexibility
Consider whether the loan offers features relevant to your needs, such as an offset account, redraw facility or additional repayment options.
Product features and eligibility vary between lenders.
Transparency and Reporting
Look for clear public disclosures about the lender's policies, commitments and progress.
Sustainability statements should be considered in the context of the information available to support them.
Borrowing Capacity and Eligibility
Your income, expenses, existing liabilities, deposit or equity and credit position can influence which lenders may be available to you.
A lender's environmental policies do not remove its ordinary credit assessment requirements.
Your Personal Values
Decide which issues matter most to you, such as fossil fuel financing, social responsibility, environmental protection or corporate accountability.
This can help guide the comparison towards lenders whose published policies better reflect your priorities.
Ethical Lending vs Green Home Loans: What's the Difference?
Ethical lending and green home loans are related concepts, but they do not necessarily mean the same thing.
Understanding the distinction can help you decide whether your priority is the lender's broader business practices, the environmental performance of your property, or both.
Ethical Lending
Ethical lending generally focuses on the policies, practices and financing activities of the lender itself.
Borrowers may consider the lender's environmental commitments, industry exposure and approach to social responsibility.
Green Home Loans
Green home loans are mortgage products that may offer particular features or pricing for eligible properties meeting specified environmental or energy-efficiency criteria.
Availability and eligibility requirements depend on the lender and product.
Energy-Efficient Properties
Some lending products may consider a property's energy performance, sustainability features or applicable certification.
Not every property with solar panels or energy-efficient appliances will automatically qualify for a green home loan.
Refinancing for Environmental Priorities
Existing homeowners may explore refinancing if they wish to consider lenders with different published environmental policies.
Refinancing remains subject to borrowing capacity, property assessment, lender approval and the costs of changing loans.
Important distinction: A lender offering a green mortgage product is not automatically free from fossil fuel exposure. Similarly, a lender with strong environmental policies may not offer a specific green home loan product. These are separate considerations worth reviewing.
Can You Refinance Your Mortgage to an Ethical Lender?
If your current bank's environmental or social policies no longer align with your values, refinancing may provide an opportunity to consider alternative lenders.
Refinancing involves replacing your existing home loan with another lending arrangement. This may involve moving to a different lender, changing loan features or reviewing your interest rate and repayment structure.
Before refinancing, it is important to consider both your values and the financial implications of changing mortgages.
Review Your Current Mortgage
Consider your outstanding balance, current rate, loan features, repayment arrangements and any applicable exit or discharge costs.
Identify Your Lending Priorities
Determine which environmental or social issues are most important to you and what lender information you want to review.
Compare Suitable Options
Explore relevant lenders and compare their published policies alongside interest rates, fees, loan features and eligibility requirements.
Assess the Cost of Switching
Consider the total cost of refinancing, any applicable break costs, potential savings and whether the proposed loan meets your needs.
What Should You Consider Before Choosing an Ethical Home Loan?
Choosing a lender whose policies reflect your values can be an important part of your financial decision. However, the mortgage also needs to be suitable for your personal circumstances.
These considerations can help you compare ethical home loan options more carefully.
Understand the Full Loan Cost
Consider the interest rate, fees, repayment structure and total borrowing costs. A loan's suitability should not be assessed on environmental claims alone.
Check Whether Policies Match Your Priorities
Review the lender's published commitments and any relevant disclosures. Environmental and social policies can change over time.
Consider Your Long-Term Plans
Think about whether you may want to refinance, make additional repayments, purchase another property or change your loan structure in the future.
Understand Your Borrowing Position
Your income, expenses, existing debts and property circumstances may limit which lenders and loan products are available.
Looking for a Home Loan That Better Reflects Your Values?
Whether you're buying your first home, refinancing or considering a new property purchase, Stellar Finance Group can help you explore suitable lending options while taking your environmental and social preferences into account.
Let's discuss your priorities, borrowing position and the options that may be available.
Hear From Our Clients
Chad wanted to put his funds to good use. He came to Lisa after being recommended by one of her happy clients, and she helped him kick-start his journey into the property market.
Chad Hurst
Lisa Bridgett is all about making her clients’ life easier! From the moment you first meet, Lisa is there to inform you, guide you and along with you, to make your financial dreams come true. Hear what her client Renee Vella has to say.
Renee Vella
It was an absolute pleasure working with Lisa on our loan financing. Lisa is extremely professional, dedicated and knowledgeable. We were very impressed with how responsive Lisa always was (and still is) to all our questions and we valued the fact that we could communicate with her outside of the normal working hours. We would recommend Lisa highly to anyone in need of mortgage financing.
Magda Louw
Lisa was awesome in the way she carried out her services. She was fully engaged from the very first meeting in understanding our needs to then take us through options in the market and eventually help us choose the right product. The whole process was well defined and managed by Lisa and her team all the way till we settled. If you are on the lookout for a professional who knows the mortgage industry well, spends time to understand your needs and maintains a proactive communication at every step of the process, then Lisa should be your choice for a broker. I highly recommend the services of Lisa Bridgett and thank her for the efforts.
Babu Narayanan
Got a dream? Lisa and her team can help you make it happen. I can’t think of a better person to have on my team to achieve my goals. Her hard work and determination bring results and she always has plan B and C (at least!) to make sure she can make things happen for you. Her team are excellent, keeping you well informed in the progress of negotiations and very responsive. I can’t recommend Lisa and her team enough!
Jennifer Hsu
From the moment you first meet, Lisa will be here to inform you, guide you and along with you, make your financial dreams come true. Sam Asadollahi recent experienced this when he asked Lisa to help him with purchasing his first property.
Sam Asadollahi
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