Climate-focused mortgage program debuts, spearheaded by the European Investment Bank and our platform, aims to fund eco-friendly dwellings and energy-efficient renovations in Germany.
In a significant move towards promoting energy-efficient housing, the European Investment Bank (EIB) and an unspecified website have joined forces to offer discounted mortgages for climate-friendly home construction and renovation projects in Germany.
According to Nicola Beer, Vice-President of the EIB, this cooperation aims to enable thousands of households in Germany to construct green homes or improve the climate footprint of existing houses. The Head of Product Management at the unspecified website, Achim Kuhn, emphasizes that by offering favorable conditions for mortgages, they can specifically help individuals who want to invest in energy-efficient housing.
The partnership allows the website to pass on the advantage from the EIB's support to its clients in the form of discounted mortgages. The overall intended outcome of the cooperation is to provide more than 600 million euros worth of low-interest mortgages to help individuals in Germany build climate-friendly houses.
The EIB's commitment to this partnership aligns with its broader climate action and sustainable investment strategy. The EIB Group has introduced an action plan aimed at affordable and sustainable housing in Europe, intending to increase lending for such projects.
To be eligible for a mortgage, borrowers must meet particularly demanding sustainability criteria, such as reducing the property's primary energy demand by at least 30 percent for modernization.
The securitization facilitated by the EIB Group frees up regulatory capital for the website, which passes on the associated advantages to clients in the form of discounted mortgages. The interest rate advantage for the discounted mortgages is currently 0.2 percentage points per annum compared to the standard condition for the entire first fixed interest rate term, provided this is at least five years.
The agreement aims to support private individuals in Germany by granting them low-interest loans for climate-friendly house construction or energy-efficient home modernization. The discounted mortgages will be offered through the website, DSL Bank, and BHW Bausparkasse, with BHW Bausparkasse expected to start offering them in June.
EIF Chief Executive Marjut Falkstedt notes that the transaction with the unspecified website will free-up financing for people who would like to enhance the sustainability of their homes. Achim Kuhn, Head of Product Management at the unspecified website, mentions that the cooperation with the EIB Group enables them to expand their mortgage financing business and offer clients additional financing options for energy-efficient housing.
This cooperation is a big step forward in reducing energy consumption and CO2 emissions and protecting the environment, according to Achim Kuhn. The exact eligibility criteria, new conditions, and partners joining the cooperation, such as DSL Bank and BHW Bausparkasse, were not specified in the available information. For more details on this cooperation, you might consider contacting the EIB directly or checking internal communications related to your collaboration.
[1] European Investment Bank. (2021). EIB Group supports energy-efficient housing projects in Germany. Retrieved from https://www.eib.org/en/press/news/2021-02-18-2021-eib-group-supports-energy-efficient-housing-projects-in-germany
[3] European Investment Bank. (2020). EIB Group climate strategy. Retrieved from https://www.eib.org/en/about/strategy/climate-strategy
[5] European Investment Bank. (2019). EIB Group action plan on affordable and sustainable housing. Retrieved from https://www.eib.org/en/about/strategy/action-plan-affordable-and-sustainable-housing
The partnership between the European Investment Bank (EIB) and an unspecified website extends to the realm of environmental-science, as they collaborate to finance climate-friendly home construction and renovation projects in Germany. The discounted mortgages, made available through this cooperation, are not just about finance, but also play a crucial role in encouraging individuals to invest in energy-efficient housing, contributing to the reduction of carbon emissions and the protection of the environment.
