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Papucci: “A green mortgage is provided in the case of a purchase of a property with an energy efficiency class higher than B or in the case of purchase and renovation, making one’s property jump two energy performance classes.”
Obtaining a green mortgage guarantees the borrower lower rates than a traditional mortgage. Typically, these products feature a ten basis point discount on the Tan, the pure interest rate applied to the loan
The modern (and future) home is green. Also testifying to this is the directive passed by the European Parliament last week, under which all residential buildings must achieve a minimum energy performance class of E by 2030 and D by 2033. The goal? To reduce energy consumption and greenhouse gas emissions to climate neutrality by 2050. Banks, for their part, have already begun a few years ago to do their part by promoting a series of financial products dedicated precisely to those who wish to support eco-sustainability. We are talking about so-called green mortgages offered by about 90 banking institutions, according to data collected by MutuiOnline. With Nicoletta Papucci, marketing director of the site of comparison offers of bank mortgages for families born in 1999, we have analyzed their characteristics, identifying the best offers available on the market between fixed and variable rates.
Green mortgage: what it is and how it works
“A green mortgage is a product developed fairly recently by banks,” Papucci explains. “It is disbursed in the case of a purchase of a property with an energy efficiency class higher than B or in the case of purchase and renovation, making one’s property jump two energy performance classes.” To have embraced such mortgages are mainly large banking institutions, the expert adds. We are talking, for example, about Bper Banca, Bnl – Gruppo Bnp paribas, Banco Bpm, Ing, and Crédit Agricole Italia, which, as we will see shortly, are also now proposing the most competitive offers between variable and fixed. Overall, as anticipated at the beginning, at the European level, there are about 90 banks that have labeled their loans as “green.”
Why a green mortgage is advantageous
Getting a green mortgage guarantees the borrower lower rates than a traditional mortgage. “Looking at convenience for the consumer, these products tend to feature a ten basis point discount on the Tan (or Annual Nominal Rate, i.e., the pure interest rate applied to a loan),” Papucci explains. “Of course, a ten bp discount at a time like the present characterized by such high rates is quite limited. But it is also true that banks propose more or less attractive offers. In some cases, only discounts are proposed on fixed costs (for example, of investigations or initial appraisals); in others, the possibility of paying no interest the first year is offered, thus guaranteeing an overall discount on interest that is much higher than the ten bp mentioned earlier.”
Moreover, the expert continues, such products can be activated at the time of the deed – thus at the signing of the mortgage contract – or later in case of need or preference. “This means that if a consumer buys an S-class home and after a year decides to invest in a renovation that allows it to jump two energy classes, he or she will be able to ask to transform their mortgage product into a green mortgage,” Papucci explains.
The best green mortgages today
In a simulation provided by MutuiOnline on actual market data, let’s assume that a 33-year-old office worker wishes to take out a green mortgage to purchase a first home. Let’s assume that the mortgage amount, with a 30-year term, is 160 thousand euros, and the property’s value is 200 thousand euros. Opting for the fixed rate, offering the best conditions according to MutuiOnline are Bper Banca (with which the monthly installment would be 705 euros for the entire duration of the loan), Bnl – Gruppo Bnp Paribas (732 euros), Banco Bpm (734 euros), Ing (735 euros) and Intesa Sanpaolo (741 euros). In the case of a variable-rate mortgage, the best initial installment for a mortgage taken out today is offered by Ing (686 euros), followed by Crédit Agricole Italia (721 euros), Banco Bpm (749 euros), Bnl – Gruppo Bnp Paribas (745 euros) and Intesa Sanpaolo (746 euros).
