Solar Install Loan on New Home: Can't Find Finance at Good Rate

agravier on 16/09/2024 - 18:06
Last edited 16/09/2024 - 18:37

Built new home (first one), moved in in May. Not much cash left. 3 kids. I've been repaying my mortgage without fault, and have no other loan (car bought cash). I have had no other loan in the past, and no adverse financial events. We have very little entertainment, not going on vacation, etc.

The mortgage lender is St George and they don't offer any particularly better deal on "green loans", in fact my banker there advised to look at other lenders.

Most solar loan "good deals" I see are for existing mortgage holders at other majors banks. Other lenders give me the worst rate on their scale, based on their automated check of my credit score. Usually something like 20% p.a.

The solar install price is 14k. State QLD.

  • How can I fix my credit score?
  • Did anyone in a similar situation managed to get a better rate with some specific lender? Who?
Financial Solar Energy System

Comments

  • holdenmg on 16/09/2024 - 18:35
    +1

    Look @ https://www.plenti.com.au/green-loans/

  • freefall101 on 16/09/2024 - 18:40

    https://moneysmart.gov.au/managing-debt/credit-repair - step one, check if there are any errors on your credit report and fix them. But beyond that, it's just keeping your debt as low as possible and servicing it properly. Have you not paid anything in the past?

    Green loans are just loans where the government is subsidising some of the interest to bring the rate down a bit. It's just an unsecured loan with part of the rate reduced, they're not actually doing anything special. So if one place is ranking you as poor, likely they all are. The additional credit checks you're doing probably aren't helping.

    I'd just wait. A $14k solar setup doesn't seem like an immediate need, particularly if you have no cash. Thought about a smaller one with room to expand instead?

    • agravier on 16/09/2024 - 18:42

      Thanks for the advice. I'll check this.

      Have you not paid anything in the past?

      I've never taken a loan before my mortgage, no.

      • freefall101 on 16/09/2024 - 19:04

        Probably worth checking for any errors then. The basic premise of any green loan tends to be excellent credit rating, so you're unlikely to find a bank that doesn't look at those.

        And when I say not paid anything, it can be any kind of credit card, utility bill, rent, etc. Or if you've done a whole lot of credit card churning, credit checks as part of getting your loan, it might just be the lack of history in general is hurting you. Can't tell until you get that credit report.

        • agravier on 28/09/2024 - 16:04
          +1

          Update, I got that credit report, with a score of 969/1000 from Illion (waiting for the Experian and Equifax ones). I guess you're right, it must be a general lack of long-term spending history, they only have data dating 3 years. It looks really good though.

          I think I'll go with the Community First Bank which I found recently, they don't offer a different interest rate to those they don't like, so I'd get <7%, and support a community-owned bank, a plus in my eyes.

          Thanks again for your advice, Freefall101. Cheers

    • agravier on 16/09/2024 - 19:00

      Customers with an eligible CommBank home loan or investment home loan can use the CommBank Green Loan to buy and install eligible energy-efficient products…

      Or am I missing another way to get this?

  • KaTst3R on 16/09/2024 - 22:10
    +1

    Try Origin, they do a 4 year monthly payment plan for large solar systems. They state that it is interest free but Im sure it is all factored into the cost of install. Worth speaking to them.

    • agravier on 17/09/2024 - 20:58

      Cool, thanks for the name, will look

  • spackbace on 17/09/2024 - 01:58
    +1

    If your credit file is mud, and/or your income would struggle to cover the loan after expenses (bear in mind, lenders use their own calcs for what expenses you should be spending with 3 kids), then stop making credit enquiries and just save the money.

    I'm quite sure you don't need it straight away…

    Hell, not that long ago, you struggled to find the money to buy a new bed and slept on an inflatable mattress instead. Suggesting you borrow more money based on what you've described sounds like a bad idea

    • agravier on 17/09/2024 - 08:58

      Not wrong! But solar offsets electrical bills, and when paid in installments, ends up cheaper on a monthly basis.

  • ifyareckon on 17/09/2024 - 07:45
    +1

    Have a look at Brighte. Our installer user them, 0% interest. Some small account keeping fees etc.

    • agravier on 17/09/2024 - 20:57

      Thanks, Brighte is the finance provider to which the installer that gave me the quote of 14k referred me, sounds promising

  • JimmyF on 17/09/2024 - 08:37
    +1

    not going on vacation, etc.

    Clearly you watch too much American TV….. We don't do vacations in this county.

    How can I fix my credit score?

    Whats wrong with it?

    Did anyone in a similar situation managed to get a better rate with some specific lender? Who?

    You might need to look at other companies, Origin for example offers 'interest free' loans for their solar systems. You can get a Powerwall and 11kw of solar installed for around $20k interest free over 5 years.

    https://www.originenergy.com.au/solar/batteries/tesla-powerw…

    • agravier on 17/09/2024 - 20:54

      Thanks for the link.

      Not sure what's wrong with my credit score, based on the above advice it might be "insufficient credit history" but I'll check what the money smart "credit repair" tool says.

  • Gros21 on 17/09/2024 - 12:57

    14k is alot for solar.

    You may be best getting a low rate credit card mines 8.99% but check min repayment figures blah blah blah

    should be under 10k for a 13kw system. You do not have the budget for a premium system

    • MITM on 17/09/2024 - 15:26

      Maybe comes with a battery ?

      • Gros21 on 17/09/2024 - 19:09

        OP is in qld which is 8c FIT but his on a shoe string budget an dcant get finance by the sounds of it

        • agravier on 17/09/2024 - 20:59

          I can get finance but they give me stupid rates…

    • agravier on 17/09/2024 - 20:51

      19kw. Not premium: Sungrow. Also considering smaller systems and less reputable installers, 14 was just one quote to illustrate.

  • MITM on 17/09/2024 - 15:26

    Why going solar ? Doesn't make cents these days. Feed in tariff all day long is 4c which is SFA and never going to repay the $14k (which was/is the govt sales pitch). Also, soon you will pay to sell your surplus power to the grid ie TAXED when there is low consumption and excess electricity. Chances are you'll outgrow your house soon enough, and give your buyer a $14k solar system for free.

    • agravier on 17/09/2024 - 20:49

      5 cents. But self consumption is helpful, with the option (hybrid) of a battery system to further reduce feed in.

  • brendanm on 17/09/2024 - 17:11

    $14k for solar? Is it 500kw worth of panels?

    Why so expensive? I paid $3200 for 6wk of panels and 5kw inverter 7 years ago when feed in was actually worth it. Used to get $0 to $30 or so bills. With feed in the way it is now, and the price of electricity, I'm now getting bills in the $500 range. Your payback on $14k is going to be very long.

    • agravier on 17/09/2024 - 20:53

      19 kW, should be about positive net in average at the current export price of 5c.

    • agravier on 17/09/2024 - 23:50

      Thx good idea but LVR still 2% too high to let me refinance. But good plan. Also I'm interested in a good broker, previous one was really bad, been avoiding them since then.

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