Green homes & mortgages: quality, health and financial returns for all

responsible borrowing

versus

poor construction

there is one “best” time to invest in building

correctly

not over financed

but under financed

long term benefits immediate benefits

monthly investment monthly benefits

The Mortgage

long term benefits immediate benefits

monthly investment monthly benefits

mortgage payment

mortgage payment

energy costs

health costs

repair costs

Total cost of ownership

+

+

+

32% ↓ mortgage defaults

&

8% higher asset values

key points

• early investment in the design, construction and materials choice of structure and building envelope is critical

• responsible mortgage finances enables sustainable construction

• banks need to be engaged from an underwriting and risk reduction perspective

• awareness of total monthly cost of home buyer is critical

green finance

Investments that bring environmental and

social benefits

EEFIG.eu

EEFIG.eu

so why not so many

green homes and

green mortgages?

??

??

?

Energy Efficiency & Green Energy

Location - Community

Sustainable & Healthy Materials

Indoor Air Quality / Wellness

Bio-Climatic Design

Construction Waste Mitigation / introduction of

Circular Economy principles

Construction Site & Property Management

Other Green Design Principles

&

the concept

Toolkit for

Residential

Investors and

Developers

NOTE – this is for demonstrative purposes and not a financial offer. Please contact

Raiffeisen Bank Romania for more details on their latest offer.

STANDARD OFFER

GREEN MORTGAGE OFFER

First 7 years Variable (> 7 y) First 7 years Variable (> 7 y)

Interest rate formula

ROBOR 3M+ 3.25%

ROBOR3M+ 2.5%

Index Rate 2.10% 2.10%

Analysis Fee 1,600 Ron

Interest rate 5.50% 5.35% 4.75% 4.60%

EPC “B”rated

apartment**

EPC “A”rated

apartment**

Green Homesqualified

apartment

Net savings with Green HOMESSale price of 70 sqm

apartment (€) 79,738 81,731 85,000

Loan amount (€) 67,777 69,471 72,250Monthly mortgage

payment (€) 417 427 412Cost of

energy/apartment/month (€) 101 65 33Total cost of monthly

ownership (€) 518 492 445

• 25 projects totaling over

6.500 apartments or villas

certified or in process (pre-

certified)

• Cluj-Napoca, Iasi, Bucharest,

Brasov

Amber Gardens

by

2014-2015

first luxury green

building complex

One Herăstrău Park Residence

by 106 apartments

construction

waste reduction

operational

waste

separation

occupant

educational

program

40 units

green façade

& terraces

complete

LED

illumination

modular

apartments

Central District

by

Aviatiei Park

by

379 units in two phases

Green terraces & roof

Country Population

Turkey 82,003,882

Italy 60,390,560

Ukraine 42,220,824

Poland 38,433,600

Romania 19,523,621

Belgium 11,449,656

Greece 10,768,193

Czech Rep 10,627,794

Bulgaria 7,050,034

Denmark 5,806,015

Slovakia 5,445,087

Ireland 4,857,000

Georgia 3,729,600Bosnia and Herzegovina 3,511,372

305,817,238

the good news

•excellent work has been done to date

•leaders present or emerging for all essential

stak eholder groups

•supported by a “win-win-win-win” business

case

•H2020 support will help augment and

replicate existing work

the initiative

•uses the power of finance to facilitate

construction of the highest performing Green

Homes

•Looks beyond energy efficiency to address

other non-energy green criteria.

•Creates a European framework while

allowing for local flexibility in certifying Green

Homes

energy poverty

•Assist fuel poverty initiatives by assisting

governments and banks to understand the

energy efficiency and other green criteria

performance of low income residential project

next

steps?

•early design involvement by residential project

developers, interest from financial institutions

•18 months – project implementation

•follow the “Network for Greening the Financial

System”

Thank you!

Steven.Borncamp@RoGBC.org