Green mortgages were first introduced in Ireland in 2019 and as environmental consciousness grows worldwide, homeowners are opting for green mortgages as an incentive to buy or build energy-efficient homes, or make energy upgrades to their homes. These mortgages not only help homeowners save money on energy bills but also contribute to saving the planet. Leading lenders in the market offer green mortgages but what exactly are green mortgages and how can they benefit you?

Green mortgages are mortgage products in Ireland that offer lower interest rates to first-time buyers, movers, switchers and those building or upgrading their homes. To qualify for a green mortgage, your home or prospective home needs to meet the minimum Building Energy Rating (BER) of at least B3 or higher. A BER assesses your home's energy performance and efficiency on a scale of A to G. A-rated homes have lower energy bills and a smaller carbon footprint, while G-rated homes have higher energy bills and are less environmentally friendly.

Green mortgages in Ireland operate similarly to standard mortgages. You borrow money to purchase a home and repay the mortgage with monthly payments and interest. The main features of green mortgages include a discount off the lender's standard rate, resulting in a cheaper mortgage for you. The savings you make primarily come from the reduced interest rate. Some green mortgages may also offer cashback at drawdown.

To be eligible for a green mortgage, you must meet the same requirements as a standard mortgage application, however, there are three pathways to qualify for a green mortgage:

1. Buying a home with a BER between B3 and A1.
2. Making energy-efficient home improvements to achieve a BER between B3 and A1.
3. Building a home with a BER between B3 and A1.

If your home qualifies, there are several reasons to consider a green mortgage:

1. Lower interest rates will lead to cost savings.
2. If you sell your home in the future, an energy-efficient home may attract buyers more easily.
3. Reducing your carbon footprint contributes to environmental sustainability.
4. You save on your mortgage while lowering your energy costs.

It is important to note that, despite all the advantages of green mortgages, they may not always be the cheapest option available. You might find lower interest rates with other products, so it is crucial that you take time to compare deals from different lenders and seek advice and assistance from a mortgage specialist. 

There are five mortgage lenders in Ireland offering green mortgages:

Use our Mortgage Calculators to compare these deals and determine which green mortgage is best suited to your needs and circumstances.

Green mortgages provide an excellent opportunity to save money. With lower interest rates and reduced energy bills, you can benefit both financially and environmentally. When deciding whether to apply for a green mortgage, it's important to conduct thorough research and seek advice from mortgage specialists. Get in touch with us today to discuss your options and make the right choice for your future.