Home loan

AS LHV: The green mortgage has become increasingly popular, as well as more advantageous

21.04.2022

Two years ago, LHV was the first bank in Estonia to introduce the green home loan, intended for the purchase of the most energy-efficient houses. Since then, green home loans have become increasingly popular, as well as more advantageous. From now on, all buyers of energy class A assets are guaranteed an interest rate of 1.79% + 6-month Euribor.

People’s biggest consumption decisions are usually related to their home. Both in terms of financial cost and environmental impact. For example, no less than a third of the average Estonian resident’s annual carbon footprint is linked to their home; more specifically, emissions from heating and electricity consumption. However, it’s nice to see that homebuyers have started to consciously make more and more eco-friendly choices.

While one in ten home loans issued by LHV was green a year ago, already one in six home loans was green in March. According to Catlin Vatsel, head of the private finance department at LHV, more and more customers are consciously looking for homes with energy class A.

Terraced houses and semi-detached houses with energy class A are very popular, as well as newly developed apartments, which sell instantly. We are happy to see and hear that customers understand the long-term nature of the decision to buy a home and the importance of considering energy efficiency. We want to accompany their decisions with favorable conditions, which is why we have decided to lower the interest rate of the green real estate loan even further and to offer all buyers of energy class A assets an interest rate of 1.79% + 6 month Euribor,’ said Vatsel.

There is no doubt that the sharp increase in energy prices has also made people think about energy efficiency. “In addition to a lower loan repayment, who wouldn’t want to pay less for heat and electricity? In addition, energy-efficient homes will have greater sales potential in the future, both in terms of property value and buyer interests,” Vatsel added.

In addition to green home loans, LHV also offers individuals green leasing for the purchase of electric cars, green hire-purchase for the purchase of solar panels or energy-efficient equipment, and a guided green pension fund. by the principles of sustainability when investing.

LHV Group is the largest domestic financial group and capital provider in Estonia. The main subsidiaries of the LHV group are LHV Pank, LHV Varahaldus and LHV Kindlustus. LHV employs over 700 people. At the end of March, LHV’s banking services are used by 337,000 customers, the pension funds managed by LHV have 135,000 active customers and LHV Kindlestus protects a total of 147,000 customers. LHV’s UK branch provides banking infrastructure to 200 international financial services companies, through which LHV’s payment services reach customers worldwide.

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