Green home improvement loans and green mortgages are becoming more popular in Ireland. This is because more homeowners want to make their homes energy-efficient and save money.
Lenders often offer lower interest rates if your home is energy-efficient. In other words, “greener” homes can get cheaper loans.
Right now, the average mortgage rate in Ireland is about 3.51%. But if your home has an A energy rating, you could get a rate closer to 3%, which can save you a lot over time.
Most homes aren’t energy efficient yet
While most new homes built since 2017 have high energy ratings, many people are buying second-hand homes, which usually have lower ratings.
- Around 64% of mortgaged homes are second-hand
- 77% of movers and 60% of first-time buyers choose older homes
Because of this, there’s a big push to improve energy efficiency.
The government plans to upgrade 500,000 homes to at least a B2 rating by 2030 under its climate plan.
Grants help—but don’t cover everything
Grants from the Sustainable Energy Authority of Ireland are available to help improve older homes.
However, these grants usually don’t cover the full cost. Many homeowners still need to borrow money to complete upgrades.
Two main ways to pay for upgrades
1. Green personal loans
The SBCI Home Energy Upgrade Loan Scheme offers:
- Loans from €5,000 to €75,000
- Interest rates from about 3% APR
- Terms from 1 to 10 years
These loans are designed specifically for energy upgrades.
2. Using equity in your home
Because fewer homes are for sale, many people are choosing to upgrade their current home instead of moving.
At the same time:
- House prices are rising
- People are spending more on renovations (from €3.9bn in 2019 to €8bn in 2025)
This means homeowners can borrow against the increased value of their home—this is called equity release.
Instead of taking out a separate loan, many people top up their mortgage to cover the cost.
Why people choose equity release
For some households, managing a separate loan is too much of a stretch.
Using equity can:
- Lower monthly repayments
- Spread the cost over a longer time
- Allow access to green mortgage rates (from ~3%)
In fact, at doddl over 50% of our clients release equity in their home when switching.
Why green mortgage rates matter
Green mortgage rates are available if your home has a BER rating of A or B.
Not all lenders offer them, so it’s worth checking your options if you have a valid BER certificate (it lasts 10 years).
These rates are often some of the lowest available.
The pros and cons
Benefits:
- Lower monthly repayments
- Cheaper interest rates
- More affordable upgrades
- Lower energy bills and carbon emissions
Things to consider:
- A mortgage is long-term
- Borrowing more usually means paying more interest overall (as its borrowed over a longer term).
However, a lower green rate can help offset these costs over time. In order to assess if releasing equity out of your home to finance home improvments is the right option for you then speak to our expert team!
Want to understand how you could finance home improvements by releasing equity from your home? Contact our team -> Start Here!
