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Writer's pictureMark Oliver

What is a Green Home Loan?

Before we go into more detail it's important to understand that not all banks or lenders are created equal when it comes to how they make their money. Many of us have never really thought about it and forget that a bank or lender is just a business with a goal to make money.

The money you put in your account is used by banks to make loans and investments. The types of loans banks make can go to industries that do good or those that do harm.


Most of us have made a conscious decision in our lives to create a positive change, like switching to clean energy, buying organic food or reducing plastic waste. So why not support lenders who are trying to achieve the same results as you?


So What is a Green Home Loan?

As mentioned above there are banks and lenders out there who aim to make a positive impact to the world we live. Green Home Loans are designed to encourage borrowers to buy, build or improve their homes in an environmentally friendly way. They typically offer discounted interest rates for houses that are energy efficient and lessen their environmental footprint.


If you want to improve your home's environmental footprint and become eligible for these loans your house needs to meet certain criteria generally including:

  • Solar panels

  • Double glazing

  • Water storage tanks

  • Insulation

If your home doesn't meet the requirements and you want to make a difference and benefit from lower home loan rates but don't have the money to do it, you've still got options. Some of these lenders will allow you to pause your home loan repayment for up to 6 months helping you save towards these upgrades.


So how does a Green Home Loan help protect the environment?

By being able to qualify for a Green Home Loan you have committed to building or living in sustainable housing that reduces your impact and carbon emissions on the planet. This is done through clever design and material selections helping you reduce your electricity and water usage as well as your monthly bills. If your home loan is also with a responsible lender then they are also playing a key part by ensuring they only lend to people and companies working towards the same goals.


If you want to find out more and see if you qualify then Contact Us today for a quick chat.



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