Sustainable mortgage

If you want to do something good for the environment and your wallet, choose a sustainable mortgage.

Why? Because a sustainable mortgage is basically a normal mortgage, but you receive an interest rate reduction for measures that reduce energy consumption and protect the environment.

At first glance, the usually higher costs of energy-efficient construction may seem daunting. But in the medium to long term, it will be worth it for you. For example, by installing a new heating system or solar panels, better exterior insulation and energy-efficiency class A insulated windows, you can save up to 60 percent on energy - which is also clearly reflected in your bill.

In addition, this construction and renovation method also increases the attractiveness for future buyers. Thus, the resale value increases and you can expect a higher price than if you would do without energy measures.

More and more banks are recognizing this and are promoting this type of construction with so-called sustainable mortgages - also known as green mortgages, eco-mortgages, sustainability mortgages, eco-mortgages or environmental loans, depending on the provider.

Such a mortgage is usually a fixed-rate mortgage or SARON mortgage with an interest rate advantage, which serves as an incentive. The conditions to obtain such a mortgage are clear and unambiguous: For new buildings or renovations, so many ecological criteria must be met that a Minergie certificate or a building energy certificate of the cantons (GEAK report) is issued. In addition, each bank can appoint further conditions as a prerequisite if it so wishes.

Regardless of whether you are interested in an ordinary or sustainable mortgage, you must meet certain requirements:

Enfeoffment: 20% You must contribute 0% of the purchase price or market value yourself. At least 10% of this must come from your savings, including your Pillar 3a assets, securities, advance inheritance payments, private loans, personal contributions or building land. Furthermore, you have the option to pledge or advance up to 10% of your Pillar 2 assets. The remaining 80% will be pledged by the bank

Portability: To ensure that you can still pay your mortgage debt if interest rates rise sharply, most banks calculate an imputed mortgage interest rate of 5% and 1% of the purchase price for ancillary costs. The housing costs calculated in this way must not exceed 35% of your gross household income in order to qualify for a mortgage.

Comparing sustainable mortgages is a real challenge due to the many different options available. It is therefore worth taking a detailed look at the individual conditions of the various banks or even consulting an independent expert. You should also always keep in mind that you should not only compare sustainable mortgages with each other, but also be offered as a comparison normal mortgages. Important also; It is an interesting option for existing homeowners to consider a conversion or expansion of the property and to finance by means of preferential interest rates.