Most of us are now acutely aware of the damage that is being done to our environment. Many of us feel compelled to do the utmost we can to ensure that our environment remains protected to the best we can. Growing in popularity in this regard is the new ‘green' home loan mortgage.
Green home loan
Basically, most home loan lenders now offer their customers the choice between three kinds of ‘green' home loans:
1. The green borrower : A ‘green' home loan borrower is where a customer is aware of the damage being done to environment and is trying to do something about this selects to purchase a home that is both energy efficient and also environmentally friendly. Here, it is possible to talk with your lender about obtaining the benefits associated with purchasing a home that passes the Standard Assessment Procedure quality home test. Provided that your new home passes this standard test, you would then qualify for all of the benefits that are attached to having a green home, including having a green home loan mortgage. Keep in mind that while the initial costs of purchasing a green home may seem a little higher than would otherwise have been the case if you had purchased a more traditional kind of home, you may also be entitled to benefit from certain government benefits by virtue of having a green home, thus purchasing a green home can have many financial benefits, as well as very sound environmental reasons.
2. The green lender : A green lender home loan mortgage may actually have a slightly misleading name. More accurately a green lender home loan is one whereby you, as the borrower, agree to borrow money from a lender who agrees only to invest their deposits and profits in environmentally friendly and ethically good way. Examples of how this works is if you agree to borrow money from a lender who agrees not to have stock investments in nuclear fuel. Alternatively, the lender can agree to provide you with certain environmentally ‘green' fringe benefits. Examples of this can be seen when lenders agree that they'll plant a certain amount of trees in inner-city areas if you agree to take-out a mortgage with them rather than another home loan provider.
3. The green home improvement loan : Many of our homes are now quite dated and a number were constructed during times when the issue of the environment probably wasn't seen as being as being as important as it is today/ an example here would be with homes that have/had asbestos linings in the roof, or lead pipes. Attempting to make all homes environmentally friendly, however, would be a strategic nightmare. In attempting to induce homeowners to play their part in the environmental updating of older homes, a number of home loan lenders now offer their customers green home improvement loans the proceeds of which can be used to update and renovate the home they are living in so that it becomes more environmentally friendly.
In addition to the feel-good factor of having a green home loan, conscientious lenders may also offer successful applicants of green home loan additional benefits to encourage them to think of having a green home loan. An example of how this could work is by giving a more favorable interest rate or by waiving any fees associated with home loan.