The green home loan has become increasingly popular, as well as more advantageous


Two years ago, LHV was the first bank in Estonia to introduce the green home loan, which is intended for purchasing the most energy-efficient homes. Since then, green home loans have become increasingly popular, as well as more advantageous. Now, all buyers of Energy Class A assets are guaranteed an interest rate of 1.79% + 6-month euribor.

People’s biggest consumption decisions are generally related to their home. Both in terms of financial cost and impact on the environment. For example, as much as a third of the annual carbon footprint of the average Estonian resident is related to their home; specifically, to emissions from heating and electricity use. However, it is a pleasure to note that home buyers have started to consciously make increasingly more environmentally friendly choices.

While one in ten home loans issued by LHV were green as recently as a year ago, then already one in six home loans was green in March. According to Catlin Vatsel, the Head of Private Financing Department at LHV, increasingly more clients are consciously looking for Energy Class A homes.

‘Energy Class A terraced houses and semi-detached houses are very popular, as well as newly developed apartments, which sell instantly. We are pleased to see and hear that clients understand the long-term nature of the decision to buy a home, and how important it is to take energy efficiency into account. We wish to support their decisions with favourable conditions, which is why we have decided to lower the interest rate on the green home loan even more and 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 large increase in energy prices has also made people think about energy efficiency. ‘In addition to a smaller loan payment, who would not want to pay less for heating and electricity? Also, energy-efficient homes will have greater sales potential in the future, both in terms of the value of the property and the interests of buyers,’ Vatsel added.

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

LHV Group is the largest domestic financial group and capital provider in Estonia. LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, and LHV Kindlustus. LHV employs over 700 people. As at the end of March, LHV’s banking services are being used by 337,000 clients, the pension funds managed by LHV have 135,000 active clients, and LHV Kindlustus is protecting a total of 147,000 clients. LHV’s UK branch offers banking infrastructure to 200 international financial services companies, via which LHV’s payment services reach clients around the world.

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