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What are green mortgages and what are their benefits?

Interest in sustainability and care for the environment is something that is increasingly worrying in our society. It seems that little by little we are becoming aware of the importance of taking care of our planet and leaving an important legacy to future generations.

In this sense, those interested in acquiring a sustainable home have the opportunity to access a green mortgage, a new product that seeks to reward homes with low energy consumption.

What are green mortgages?

A green mortgage is, therefore, a mortgage loan that finances the acquisition, construction and rehabilitation of homes that adopt sustainable measures.

The main difference with traditional mortgages is that the interest rates are lower to encourage responsibility towards the buyers. Therefore, the higher the energy rating of the home, the lower the interest rate on the mortgage.

It is a product that is still taking off in Spain and in most of Europe; however, there are already banks that include it in their product range.

What is the origin of green mortgages?

The first bank that wanted to promote the purchase of sustainable homes was the Dutch Triodos Bank in 2013. Since then, interest in this product has been growing and more and more banks in Europe are promoting this new product.

They also have a loan to finance energy rehabilitations of between 3,000 and 100,000 euros.

What are the requirements to qualify for a green mortgage?

Green mortgages can only be taken out for homes that are sustainable. By sustainable housing we mean those properties that meet the following requirements:

  • The energy rating of the home must be among the highest: A or A+. In the case of a rehabilitated home, the reform must achieve this level of efficiency.
  • To accredit solvency to return the money; that is to say, to have sufficient savings and income to return the money to the bank (the same as in any loan).
  • It is necessary to present certain documents to the bank to prove these measures: energy qualification certificate, last payslips, income tax return…

Who issues the energy certificate?

Energy certificates are issued by private companies or official certifiers. They must be contacted and a technician will visit the building to evaluate its efficiency. At the end of the inspection he will hand over a certificate indicating the level of CO2 emissions.

The service and the certificate cost between 200 and 400 euros, although each company can apply different prices.

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