There are various kinds of mortgages in the market. But with the advent of the environmental revolution, financial institutions are realising that it is worth their while to offer green mortgages. With green banking picking up, green mortgages have followed suit.
There are different types of green mortgages. One is the Energy Improvement Mortgage, where existing buildings/houses are upgraded to become energy-efficient with the installation of equipment/appliances. The other is the Energy Efficient Mortgage, wherein the mortgage is used for the construction of new homes/buildings that are energy-efficient.
In addition to special discounts, other advantages include lower cost of utilities in the long run. The Residential Energy Services Network in the U.S. found that the market value of a home is shown to increase US for every buy celebrex pills US decrease in energy costs.
In Canada, the Bank of Montreal recently unveiled a green mortgage program for its citizens, who choose an energy-efficient home. The program attracts buyers by giving them a fixed five-year interest rate on a green mortgage.
In the UK, green mortgages have additional benefits. Lenders make contributions to charities and support reforestation schemes, or opt not to work with builders/contractors that are known to pollute the environment. One example is the London & Country Green Mortgages company that pledges to plant 50 trees every time a buyer takes out a mortgage.
With environmental concerns increasingly moving to the forefront of many individual and business agendas — how long will it take until green mortgages become more accessible to mortgage applicants?