Green Mortgage

A green mortgage, also called an energy-efficient mortgage, is a type of loan offered by financial institutions to homebuyers who purchase energy-efficient or eco-friendly homes, or who commit to making green improvements to their property. These mortgages often come with favorable terms, such as lower interest rates or reduced fees, which incentivises sustainable living. They can also reduce the borrower's overall energy costs, which can lower the risk of default. Green mortgages can even be part of larger initiatives which encourage a greater uptake of sustainable housing, thereby reducing the overall environmental impact of the residential sector.