Green home improvement loans and Green mortgages have surged in popularity as Irish homeowners look to cut energy bills, lower borrowing costs, and improve their home’s sustainability.
Below is a breakdown of what you need to know and how to make green upgrades work financially.
Why “Green” Borrowing Costs Less
- Green loans and Green mortgages typically come with lower interest rates
- The average new mortgage rate in Ireland is currently 3.46%
- Homes with a BER rating of A can access Green mortgage rates as low as 3%
- This can lead to significant savings over the life of a mortgage
Most Homes Aren’t Green Yet
- 94% of new homes built since 2017 have an A rating
- However, the majority of mortgaged homes are second-hand
- Just over 64% of all mortgaged homes are second-hand:
- 77% of home movers
- 60% of first-time buyers
- Second-hand homes typically have lower BER ratings, creating a major opportunity for upgrades
Government Push to Improve Energy Efficiency
- Under Ireland’s Climate Action Policy, the National Residential Retrofit Plan aims to:
- Retrofit 500,000 homes to a BER of B2 or higher by 2030
- Grants are available for homes built before 2011
- These grants help—but often don’t cover the full cost, meaning borrowing may still be required
How Can I Finance Green Home Improvements?
There are two main ways to fund energy upgrades:
1. Reduced-Cost Green Loans (Unsecured)
- The Home Energy Upgrade Loan Scheme offers:
- Government-backed, reduced-cost loans
- Must be used for SEAI grant-aided energy upgrades
- Loan details:
- Borrow between €5,000 and €75,000
- Interest rates from 3.5% variable (3.55% APR)
- Loan terms from 1 to 10 years
- Best suited for:
- Smaller or standalone upgrades
- Borrowers who don’t want to alter their mortgage
2. Equity release through your mortgage
With limited housing supply, many homeowners are renovating instead of moving
Property values continue to rise:
- According to the Central Statistics Office, prices rose 7.6% nationally in the year to September
- Rising values allow homeowners to release equity for upgrades
- Recent Banking & Payments Federation Ireland figures show:
- A 26% year-on-year increase in mortgage top-ups
- Average top-up now €135,021
- Why equity release is appealing:
- One loan instead of multiple repayments
- Lower monthly repayments due to longer mortgage terms
- Ability to lock in a Green mortgage rate
At doddl, 51% of mortgage switchers are releasing equity—mostly for home improvements or to clear existing renovation loans.
Buying a Second-Hand Home? Plan Ahead
- Many second-hand homes need upgrades
- Renovations can be:
- Included in your mortgage at purchase, if budget allows
- Completed later via a mortgage top-up
- Upgraded homes often avoid the price premium attached to already-refurbished properties
Why Green Mortgage Rates Really Matter
- Green mortgage rates are available if your home has a BER of A or B
- They apply to:
- Home buyers
- Renovators
- Mortgage switchers
- Not all lenders offer Green rates
- A BER certificate is valid for 10 years, so if you qualify:
- You should be actively seeking Green mortgage advice
- You may be eligible for the lowest rates on the market
The Numbers: Cashflow vs Total Cost
- Equity release + Green rate can:
- Reduce monthly repayments
- Make upgrades more affordable day-to-day
- However:
- Mortgages are long-term loans
- Longer terms can increase total interest paid
- The trade-off:
- Lower Green rates can significantly offset this
- Potentially delivering monthly savings and long-term value
The Bottom Line
- Green upgrades can:
- Reduce energy bills
- Lower borrowing costs
- Increase property value
- By combining:
- Government grants
- Reduced-cost Green loans or equity release
- Access to Green mortgage rates
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Homeowners can improve comfort, cut costs, and save thousands over time—while reducing their environmental footprint.
For mortgage information on Green Mortgages please do contact our team at www.doddl.ie
