Green Mortgages: What exactly are they and what do they offer?

In light of the pressing global imperative to address climate change, there’s a notable surge in efforts from both individuals and industries to shrink their carbon footprint and adopt sustainable habits. Within the realm of real estate, this shift towards sustainability is unmistakably reflected in the rising popularity of green mortgages.

Here in Ireland, esteemed for our natural beauty and unwavering dedication to environmental conservation, the advent of green mortgages signifies a commendable stride towards a greener future. This begs the question: What exactly do we mean by “green” mortgages?

Green mortgages, also referred to as sustainable mortgages, are a specialized form of loan meticulously tailored to finance environmentally friendly properties or home enhancements, such as solar panels, insulation, or smart heating systems. By affording borrowers more favorable terms and lower interest rates, these mortgages incentivize individuals to embrace eco-friendly practices.

Furthermore, green mortgages offer substantial cost-saving benefits for homeowners over the long haul. By championing energy efficiency, they facilitate decreased energy consumption, leading to reduced utility bills. Through strategic investments in energy-saving technologies and home upgrades, homeowners can effectively …

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Mortgage Myths Busted

Mortgages for anyone can be confusing, especially for young people or first time home-buyers. There are several common misconceptions or myths when talking about mortgages. Here we will set the record straight and bust those mortgage myths. 

It is NOT true that you have to be an existing member of a bank to get approved for a mortgage. Mortgage applications are assessed on a case to case basis. Being established at a bank already does not affect the outcome or make you more or less likely to get approved. Existing members also do NOT get better agreements. 

Having evidence of gambling will NOT exclude you from being able to get you a mortgage. Having several transactions to online gambling websites may raise some concerns to lenders but occasional transactions will not strike your eligibility and will not be held against you. 

It is NOT impossible to get a mortgage if you’re self-employed. Many people think if you’re self employed it is challenging to get a mortgage and a home. Being self-employed does not exclude you from being approved from getting …

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Comparing Mortgages in Ireland to Mortgages in the United States

 

The mortgage market is a vital component of the housing sector, enabling individuals to purchase homes by providing them with long-term financing options. While mortgages serve a similar purpose in different countries, their structures and features can vary significantly.

First, we take a look at the different mortgage types. In the United States there are fixed-rate mortgages which are predominantly offered and provide a fixed interest rate for the loan’s duration. There are Adjustable-Rate Mortgages (ARMs) and the interest rates can fluctuate based on market conditions and typically offer an initial fixed rate for a specified period.There are FHA Loans which are backed by the Federal Housing Administration and provide accessible financing options for low-to-moderate-income borrowers. Lastly, there are VA Loans which are guaranteed by the Department of Veterans Affairs and are exclusively available to eligible military veterans and their families.

In Ireland there are Variable Rate Mortgages which are commonly offered with interest rates subject to change in response to market conditions. The Tracker Mortgages are tied to the European Central Bank (ECB) rate and offer borrowers …

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The 10 Mortgage Lenders in Ireland

There are 10 mortgage lenders available in Ireland. These include (no particular order):

AIB Avant Money Bank of Ireland EBS Finance Ireland Haven ICS Mortgages KBC Permanent tsb Ulster Bank

Many mortgage holders qualify for a change of mortgage and could thus save significant amounts of money. It is important to compare your options before deciding on a mortgage. The central bank’s mortgage lending rules impose a limit on the amount of money a bank is allowed to lend.

Currently, Irish banks can lend up to 3.5 times a borrower’s annual income. Lenders may exceed the 3.5 loan-to-income limit for 20% of the total loan value in a calendar year. Lenders examine bank statements to understand a borrower’s ability to repay. You will be asked to submit six-month bank and credit card statements.

This post was written by Veronika Pluháčková who was a research intern at Irish Mortgage Brokers in May of 2022.

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Ireland and Massachusetts (USA): Compare and Contrast of Jobseeker’s Allowance

Unemployment is a stressful time of one’s life. The fear of not knowing where your next paycheck is going to come from, and if you are going to have enough to put food on your table, is very real for many people. I will examine the different government allowances in Ireland and the United States to see how these countries compare and contrast when helping out their unemployed when they are finding their next jobs.

In Ireland, Jobseeker’s Allowance is a type of payment that Ireland government pays the unemployed. The allowance payment is a means-tested payment, meaning an unemployed individual would have to fall lower than the average of specific income qualifications. This allowance payment is paid out by the Department of Employment Affairs and Social Protection (DEASP). To qualify, one must:

Be Between 18 and 66 Be Unemployed Actively be seeking work (with proof) Satisfy the means-test Be a proven habitual resident (living in Ireland with some permanence)

In order to satisfy the means-test, the DEASP observes your personal cash income, savings and other assets. However, the DEASP …

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50 Reasons Ireland Should Consider Tall Buildings

Here are 50 reasons why Ireland should consider tall buildings for residential and commercial purposes:

1. Saves Space – In a world with a growing population, developing buildings vertically allows for more space and more people. The land available for buildings is finite, and while tall buildings have a height limit, cities and towns can better utilize this space by building more tall, vertical buildings.  

Source: Wray, Sarah. “’Mini Cities’: The Rise of Tall Buildings.” Smart Cities World, www.smartcitiesworld.net/opinions/opinions/mini-cities-the-rise-of-tall-buildings

2. Creates More Homes – There is a correlation between density of a city with the number and height of tall buildings. High-rises allow for more homes by building vertically rather than building wide or horizontally. 

Source: “The Pros and Cons of the Skyscraper.” RG Group, 17 Apr. 2018, rg-group.co.uk/the-pros-and-cons-of-the-skyscraper/#

3. Creates More Office Space – Tall buildings or skyscrapers are able to satisfy the needs and desires for companies to be in proximity together in dense, urban areas. Building up answers vast company demand for city office space. 

Source: Barr, Jason. “The Economics of Skyscraper Height (Part IV): …

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Help To Buy For First Time Buyers

The name provides a definition for itself. First time home buyers are people in the market buying a home for the first time. Compared to other home buyers, such as trader-up borrowers and mortgage switchers, first time buyers have different benefits and restrictions when borrowing than other borrowers. The Central Bank of Ireland requires a 10% down payment for first time buyers. Now, for first time buyers, a 45,000 euro down payment for a 450,000 euro home may be somewhat daunting. However, the Central Bank has offered assistance for their first time buyers to keep them in the market. The Central Bank offers a help to buy program. This benefit allows for first time buyers of new houses and apartments to take a 5% tax rebate off of properties less than 500,000 euros. In a recent case at Irish Mortgage Brokers, a married couple came looking for a mortgage on their first home. The couple did not have a home in mind at the time, but based on their income, the couple had roughly below 500k to spend. Both individuals …

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Mortgage Backed Securities: United States and Ireland

The United States government wants mortgages readily available for people in the market for a new home. In order for mortgages to be available, banks would have to have enough capital to make such loans. In effort to support banks, the United States Congress has federal mortgage organizations to monitor and support the mortgage market. Three federal mortgage organizations that exist are Fannie Mae, Freddie Mac and Ginnie Mae. While these may sound like foolish nicknames for government-created organizations, these organizations are vital for monitoring mortgage banks in the United States. If too much capital is readily available from banks to the public, these government organizations buy mortgages from banks. Upon the organizations’ purchase from the bank, the Federal National Mortgage Association (Fannie Mae), for example, can hold these mortgages until a time of need or sell securities, backed by several of these mortgages, to investors willing to invest in real estate. The capital from the investors’ mortgage-backed securities purchase allows for more loans for new homebuyers, while the investors await return through the new homebuyers’ mortgage repayments. It is …

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Irish Insurance Brokers

Insurance brokers can offer a wide variety of services to customers. Some brokers specialize in certain areas of Insurance, investments, Pensions and other financial products. The main benefit of using the services of a broker over say a bank is that with a broker there are a number of different services offered to the client. In most cases banks are tied to an insurance agency so the client can only get 1 quote with them. In a brokerage, you will find a number of different providers with multiple different quotes and rates. This gives the broker some leverage over the insurance agencies in order to get the client the best deal available to them. 

For a potential client, the most time efficient way to price the market for a policy is to use a broker. The broker will offer the most suitable product available at the best price and in many circumstances improve on the policy already in place through a bank. 

There are a variety of insurance products on the market to suit every need. Life assurance on the …

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Safety Nets for Consumers in Mortgage Arrears

According to The Central Bank of Ireland, at the end of June 2019, there were 723,280 private residential (PDH) mortgage accounts for principal dwellings held. Of this, 61,901 accounts still had outstanding payments, also referred to as being in arrears. as of June, there were a total of 61,901 total accounts in arrears. Within that, over 18,000 were within 90 days overdue, almost 5,000 were up to 180 days overdue and a staggering 27,792 accounts were over 720 days overdue. However, at the end of the quarter only 1,407 homes were repossessed. So what protections do homeowners have when they are in arrears? In Ireland there are many codes and acts that are specifically designed to protect the family home from repossession.

The main code that deals with family homes, is the Code of Conduct on Mortgage Arrears (CCMA) which was put into place in 2013. The code is issued by the Central bank and relates to customers in arrears and pre-arrears situation. It does not however deal with investment properties. This code requires mortgage lenders to apply the Mortgage …

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