Specialist
What is a green rate mortgage?
The workings of a green rate mortgage are the exact same as a standard mortgage, with the only difference being a rate reduction for the energy efficiency of the property you are mortgaging.
To qualify for a green rate mortgage, the property must be rated between A1 to B3 on the BER scale. Green rate mortgages are currently available on the market, and they offer rate reductions from 0.3% up to 1%, depending on criteria and lender.
Standard promotional incentives such as cashback offerings are still available on green rate mortgages, although varying between lenders making them a competitive option.
Let’s compare!
Green Rate Mortgage Comparison
Figures Based on a €400,000 mortgage, 90% LTV over 25 years.
Green rate of 3.65% (APRC 4.1%) offered by Haven Mortgages LTD.
Standard rate of 4.75% (APRC 4.62%) offered by Permanent TSB.
All of the above rates quoted are subject to standard underwriting criteria and assessments.
Rates correct as of 14/09/2023.
How do I qualify?
Build – If building a property, it must meet the BER scale requirements. High energy efficiency is standard in most self builds and new-builds in Ireland today due to building regulations.
Buy – A property within the BER scale requirements.
Renovate – Your existing property and enhance the BER of the property to qualify for a green rate.
What is needed to apply?
To apply for a green rate mortgage, you will need all standard documents associated with a mortgage application, but you will also be required to supply the BER certificate of the property being mortgage. If you have a BER certificate for your property at the moment, it is valid for 10 years from the date of inspection. You can download your certificate from www.seai.ie without any additional cost. You will also find details on how to get an energy rating on this website also.
Green mortgages provide a cost-efficient means to accessing a mortgage. When you complete the hard work of buying a home, building a home or renovating a home, you want to ensure you are keeping your costs as low as possible.
If you wish to discuss green rates in further detail, or if you are ready to proceed with a green rate mortgage and wish to begin the process please contact us and to request our Mortgage Enquiry Form and Checklist.
Stephen Cox : CMCC Financial Solutions