What are green mortgages and how do they work?

For example, a green mortgage can link the interest rate to the energy rating of the house for which the client asks for financing, or it can also be a cheaper mortgage when renovating a property to make it efficient at energy level. In short, these are loans with special conditions for sustainable buildings and reforms aimed at improving energy efficiency.

The purpose of green mortgages, therefore, is to benefit the buyer or the person who wants to rehabilitate their home, but also to revert to the environment. The idea is that we all win. On the one hand, the purchase and rehabilitation of sustainable homes is promoted, which contributes to fighting against climate change. On the other hand, the client sees his action rewarded with savings or with better conditions.

Finally, banks also gain, since the risk of default by the owner is reduced and the value of the property increases.