Will NZ banks go for Green Mortgages?

June 27, 2018

The NZGBC Housing Summit held last week discussed the advent of Green Mortgages, which are gaining popularity overseas, particularly in the UK and Europe.

Banks offer lower interest rates and other tangible financial incentives for properties which are green-accredited, or for which homeowners will commit to upgrade.

RCP Director Cristean Monreal says it’s a concept he hopes NZ banks will embrace as the country moves towards a Zero Carbon target for all new residential homes by 2030.

“Green mortgages are a great way to incentivise residential developers, by ensuring the extra cost associated with buying or building a green, eco- friendly home, doesn’t increase your monthly repayments,” says Monreal.

“Add to that the benefit of reduced utility costs for the life of the property and the ability to purchase a better quality home with the potential opportunity for greater appreciation, and you’ve got a winning combination.”