The Rise of Green Mortgages: The Environmental and Financial Benefits

The commitment to the environment is increasing among the youngest sector of the population. In the year 2021, the proyecto Climate of Change pointed out that 71% of young Spaniards showed concern about the climate emergency. A year later, the percentage grew to 97% among people between the ages of 16 and 30, according to the data provided by the report ‘The Future is Climate‘. This awareness of climate change has already begun to be transferred to the housing sector, where the so-called ‘Green Mortgages’ are gaining prominenceas stated from RN Your Mortgage Solution.

Ricardo Gulias, CEO of the company specialized in financial intermediation at the mortgage level, mentions that interest in ‘green mortgages’ has grown among young people during 2023. “For the millennial generation, The granting of a loan is something delicate and requires an in-depth study where criteria such as climate sustainability acquire vital importance.«, mentions the expert, who reasons that, for this reason, green mortgages are presented as a more valued option among young people than adults.

Gulias highlights the generation from 25 to 40 years as the only one that has shown interest in this type of credit. This is a statement that is corroborated by the I Observatory on Housing and Sustainability, prepared by UCI (Union of Real Estate Credits), which shows that only 2 out of 10 people between the ages of 45 and 65 are aware of sustainable mortgages. . «Commitment to the planet and the environment involves making decisions that matter and have a real impact, such as buying a home without forgetting the climate factor, and that responsibility now falls into the hands of the youngest«, they point out from RN Your Mortgage Solution.

Savings and long-term commitment

«The tightening in banking negotiations has produced that The conditions for contracting a sustainable mortgage are similar to other mortgage loans, making it an option to take into account for the future“, indicates the CEO of RN Tu Solución Hipotecaria, who mentions that, as the credit is amortized, a green mortgage can turn out to be an affordable and very profitable option. Gulias says that “in the long term, these loans not only benefit our planet, but they also lower the cost of bills since they use much less energy and whose spending can be reduced up to 90%«.

Ricardo Gulias mentions that ignorance of this type of credit makes it an undervalued option today. “Green mortgages usually have a review index 0.10% lower than a normal mortgage”, mentions the CEO of RN Your Mortgage Solution. In fact, in the absence of demand, Not many financial institutions offer it and its price is higher than a regular mortgage: “In a context like the current one, many people prioritize other factors over the climate emergency. To obtain a green mortgage, the energy rating of the home must be at least B, which is why young people must assume that this is a guarantee option for their future”, the expert emphasizes again, “from financial intermediation entities we must commit ourselves and seek the best conditions so that green mortgages are a simple and increasingly present alternativeGulias concludes.