What are green mortgages and how do they work?

The 'green' mortgage, in English Energy efficient mortgage (Eem), is, according to the definition developed by the EU Commission together with the European Mortgage Federation, a loan with subsidized conditions intended to ensure an improvement in the energy efficiency of the home by at least 30%.

Energy efficient mortgages (Eem), according to the European definition, are of three types:

Green mortgages for house purchase

They are green mortgages that finance the purchase of a home with high energy performance (class A or B). They can have a fixed or variable rate, with subsidized rates, and can finance between 80 and 100 percent of the value of the property.

Green mortgages for renovate house

They are loans granted to carry out energy improvement interventions on the first home, such as thermal insulation, clean energy supply, efficient air conditioning systems. The aim is to achieve an improvement in energy performance of at least 30 percent, or a step up by two energy classes towards the best.

Green mortgages for build house

These are loans granted to finance the construction of a house according to green building criteria, i.e. a building with low or no environmental impact. The disbursement of the loan takes place in several tranches depending on the progress of the work and covers up to 90 percent of the costs incurred.

What are the advantages of green mortgages?

The advantage of a green mortgage is that, in addition to being good for the environment, it can usually be obtained at lower interest rates than traditional mortgages. For this type of use, in fact, you can access specially designed banking offers.

In fact, it must be kept in mind that a house with good energy efficiency (A or B) appreciates in value over time, therefore a greater profit can be obtained from both its sale and its rental. This is one of the reasons why banks grant favorable conditions, which constitutes a double advantage for the borrower who, with lower interest, finds himself with a house of greater value. Furthermore, with greater energy efficiency, the consumption on the bill will also be lower, and this will also be a further advantage for the homeowner.

What are the requirements for obtaining a green mortgage?

The requirements for accessing a green mortgage may differ from bank to bank, but what is essential is, obviously, the building that is purchased or renovated. By obtaining a mortgage, in fact, the property must be (or become) more energy efficient. In other words, the property underlying the mortgage, if purchased, must be in energy class A or B, while in the case of renovation, it must improve energy efficiency by at least 30 percent, or with a "leap" of at least two energy classes.

How to make a house eco-sustainable

Here are some renovation interventions that can improve energy efficiency and which can be financed with a green mortgage (but also with renovation bonuses or with the superbonus 110):

• Install fixtures that improve insulation. Windows are one of the main points of heat loss in a house, which implies greater energy consumption in air conditioning. Installing double or triple glazed windows prevents this, reducing the energy we have to use to air condition the home. 
• Improve wall insulation. In addition to windows, walls, floors and ceilings are also spaces through which heat is lost. Installing some siding made of low thermal conductivity materials helps avoid this problem.
• Improve the insulation of external walls. Just as we can improve insulation inside, we can do it outside. In this case, the most common way is to install materials with low thermal conductivity on the roof and facade.
• Install solar panels. Having solar panels on a home allows us to generate our own energy, which obviously reduces the impact the home has on the environment and its dependence on the supply of electricity (which is generally produced by burning fossil fuels).
• Installation of charging stations for electric vehicles. The decarbonisation of transport also plays an important role in the ecological transition; Having a charging station for an electric vehicle for private use is another intervention that helps us reduce the environmental impact of our home.
• Renovation of the electrical system. In addition to being dangerous, an old electrical system consumes more energy than a new one. Therefore, renovating it will help us have a more sustainable home.
• Heating your home with electricity. Replacing oil or gas boilers with electric boilers and other additional installations (e.g. underfloor heating) is an intervention that helps improve the energy efficiency of a home.