Ethical banks in Australia: how to compare banks and home loans

If you want an ethical bank in Australia, start with a shortlist and check what each bank actually excludes. Bank Australia, People First Bank, Teachers Mutual Bank and Bendigo Bank offer different starting points. Their ownership, policies and loan features matter more than the label.

You might want to avoid fossil fuel lending, support a customer-owned bank or finance a more energy-efficient home. Decide which of those matters most, then compare the cost and features you need. You can change your everyday banking without automatically refinancing your mortgage.

These are options to investigate, rather than a ranking of every Australian bank. The profiles below explain the evidence and limits behind each inclusion.

Ethical banking means considering a bank's environmental and social practices alongside its products. You might look at the industries it finances, how it treats customers and staff, and how clearly it reports its decisions. The word 'ethical' on its own does not tell you which activities are excluded.

A green loan has a narrower purpose: it may fund an energy-efficient home, solar panels or other eligible upgrades. A bank can offer that product while lending to industries you would prefer to avoid. Check the bank and the loan separately.

Use the profiles below to check the evidence behind the shortlist. Customer ownership describes who owns a bank; a lending exclusion describes what it will not fund. One does not prove the other.

Bank Australia's climate policy says it does not lend to coal, gas or oil extraction, or fossil fuel electricity generation. It also offers a Clean Energy Home Loan for qualifying properties. Those are two separate checks: the lending policy helps you assess the bank, while the property criteria determine whether you qualify for a green discount.

Teachers Mutual Bank is part of Teachers Mutual Bank Limited, a certified B Corporation. The group also includes UniBank, Health Professionals Bank, Firefighters Mutual Bank and Australian Mutual Bank. Australian Mutual joined on 1 May 2026.

Read the group's current responsible investment policies alongside its certification. B Corp status is useful evidence about the business; it does not certify every loan as suitable for you or promise that every activity meets your personal definition of ethical. Each brand's membership and product eligibility also needs checking.

Bendigo's climate change policy excludes direct finance to specified fossil fuel projects and large-scale fossil fuel electricity generation. It also says it continues to serve individuals and businesses that depend on those industries. That distinction matters if your priority is avoiding all exposure to fossil fuels.

For the mortgage features and borrowing considerations, see our Bendigo Bank home loan review.

People First Bank is the trading name of Heritage and People's Choice Ltd, formed by the March 2023 merger. It is customer-owned and its B Corp certification is listed by B Lab. That gives you evidence to investigate beyond a general claim about being ethical.

People First publishes climate commitments covering its operations and mortgage portfolio. Emissions targets and carbon offsets are different from a policy excluding particular industries from lending. Check the policy for the issue you care about rather than treating certification as a blanket guarantee.

Our People First Bank home loan review covers multiple offsets, professional LMI waivers, fees and application limits. Use it to check whether the loan suits your income, deposit and day-to-day banking.

ANZ acquired Suncorp Bank on 31 July 2024. If parent-company lending matters to you, include ANZ in your research. Suncorp Bank should not be assessed as an independent alternative to the major banking groups. Our Suncorp home loan review covers the mortgage side.

Bankwest is a division of Commonwealth Bank, and ubank is part of NAB. A different brand name does not necessarily take your banking outside a major banking group. Follow the group's current policies if that is part of your decision.

Read the policy before relying on a slogan. Look for the industries covered, any revenue thresholds or exceptions, and whether the exclusion applies to lending, investments or both. A restriction on new projects can leave existing lending in place.

Then check the date and who the evidence covers. A report about one banking brand may not describe its parent company. A future target is also different from a change the bank has already made.

Watch for claims about a bank's offices being carbon neutral. That tells you something different from which businesses it finances. Also ask whether an exclusion covers only new projects, whether it leaves room for general corporate loans, and whether the bank publishes progress against its targets.

B Corp certification and Global Alliance for Banking on Values membership mean different things. B Corp is a business certification; GABV is a network of banks. Neither is a guarantee of the cheapest mortgage or approval for your application.

Market Forces' bank comparison is another research tool. Check its reporting dates carefully: the table reviewed for this guide includes funding figures for 2023 and records since 2016. A finding that it has no record of a bank funding fossil fuels is different from a binding policy that excludes such lending. It is not an all-purpose ethical rating.

Buying an energy-efficient home and borrowing for a battery are different jobs. The products below show why the loan structure matters. These are examples, not the full market, and access through a mortgage broker varies. Our green home loan guide explains the wider eligibility and cost checks.

Bank Australia's New Build criteria include all-electric fixed appliances, a NatHERS rating of at least 7.5 stars and rooftop solar. The home must have been built within 18 months of applying. Check the full evidence requirements, fees and the rate that applies after the discount ends.

CommBank's home energy loan finances approved purchases such as solar panels and batteries. The special offer for eligible mortgage customers has no establishment or monthly loan service fee; other fees may apply. It does not reduce the rate on your existing home loan.

Westpac's Sustainable Upgrades loan requires an existing or approved Westpac home or investment loan of at least $150,000. Energy-efficiency upgrades must meet its supplier requirements; separate criteria apply to climate-resilience work. This additional loan has no offset or redraw. See our Westpac home loan review for the main mortgage's features.

Product conditions were checked on 30 September 2026. Follow the lender links for current interest and comparison rates. Compare the total repayments over the term you intend to use, including fees, rather than choosing on the advertised rate alone.

Before moving your savings, check whether your existing account is linked to a home-loan package or an offset. Taking money out of an offset can increase your mortgage interest, even if the new savings account pays interest.

Get the new account, card and online banking working first. Then move your pay and regular payments: direct debits, subscriptions, scheduled transfers and any government payments. Check that payments arrive and bills are covered before closing the old account. Moneysmart's switching guidance explains the main account changes to make.

For a refinance, ask for a comparison using the same remaining loan term. Include discharge and application costs, any fixed-rate break cost, and whether Lenders Mortgage Insurance would apply. Extending the term can reduce monthly repayments while increasing the total interest you pay. Our refinancing guide explains what to weigh up.

For example, if switching costs $1,500 and saves $50 a month after ongoing fees, it takes 30 months to recover the upfront cost. That simple calculation assumes the monthly saving stays the same. Your values may justify paying more, but it helps to know the cost before deciding.

Our home loan features guide explains offset and redraw. If you are ready to compare lenders, our bank and home loan review directory brings the individual guides together.