Switching home loans out of fossil fuel funding banks
If you want to make an impact on the big banks lending billions of dollars to fossil fuel projects, one of the most powerful things you can do is move your home loan to another bank.
ANZ, Commbank, NAB and Westpac literally make billions of dollars each year through interest paid on home loans, and this income stream is vital for them. When you look at the amount of interest you pay over the lifetime of a home loan, it is clear why the big four banks want to desperately keep you as a customer.
Moving your loan away from the big four banks represents a significant loss of future income for the bank. This means that even if you don’t have a significant amount of savings you are in a powerful position to tell the big banks to stop funding fossil fuels.
How do I find a fossil free bank?
These are some of the things you will need to do to move your home loan to a bank or credit union not investing in fossil fuels:
- Take a look at our bank comparison table to see a list of banks and credit unions that are not investing the funding fossil fuel industry. Look under the ‘Banks with no current record of funding fossil fuels’ tab.
- If you want to manage moving home loans on your own, directly contact the banks and credit unions that interest you.
- It is possible to find mortgage brokers that deal with smaller banks and credit unions to help you find a new home loan. Read the section below for further information.
Using a mortgage broker
A mortgage broker is someone who negotiates with banks, credit unions and other credit providers on your behalf to arrange a home loan. A mortgage broker will have relationships with loan providers and will usually present and explain a range of loan options to you, help you make a choice, and assist you to manage the process through to loan settlement. Using a mortgage broker can make the process of finding a home loan easier. Often a mortgage broker is paid a commission by a bank when they bring you on as a home loan customer so you should not incur any costs.
It should be noted that mortgage brokers will not have access to all home loans available as they will only deal with loan providers they have established relationships with. Also, not all banks and banks and credit unions use mortgage brokers to sell their home loan products. This means that in addition to using a mortgage broker it is recommended that you do some research yourself to see what other options are available before making a final decision. Market Forces can help you identify which banks do and don’t fund big coal an gas projects, but we can’t offer financial advice. Some useful resources can be found through Smart Money and also Choice.
Below are the contact details of three registered mortgage brokers who are aware of our campaign and can help you shift your home loan to a fossil free bank. These brokers make a commission from the bank the home loan is switched to, so they will not charge you any fees.
Nicholas Chester – Ethical Home Loans
Mobile: 0403 957 072
John Bolton – Finweb
Ph: 03 5996 2224 Mobile: 0427 134 631
Deb Richards – Inline Home Loans
Ph: 07 4093 9141 Mob: 0400 794 687
You can find other brokers at the Mortgage and Finance Association of Australia (MFAA).
Many standard mortgage brokers will offer home loans from a range of smaller banks and credit unions, but will most likely also offer home loans options from the big four banks and their subsidiaries. So it is possible to use a ‘standard’ mortgage broker to find a home loan with a bank that is not investing in fossil fuels, but you will need to make sure you clearly set out your requirements (i.e. you only want to deal with banks not investing in fossil fuels).
Below is a is a list of some banks and credit unions not investing in fossil fuels that use mortgage brokers to sell their home loans products. When speaking with a mortgage broker ask them if they deal with any of these smaller banks or credit unions.
- Adelaide Bank
- Bank Australia
- Bank of Queensland
- Bendigo Bank
- Heritage Bank
- ME Bank
- Newcastle Permanent
- P&N Bank
- Peoples Choice Credit Union
- Teachers Mutual Bank
- The Rock
- Wide Bay Australia