Sustainable living has been gaining prevalence in Singapore in recent years and it is driven by initiatives such as the Singapore Green Plan 2030 which works towards a greener and more livable future. With this, green mortgages have emerged as a sustainable option for environmentally conscious homebuyers. This guide will break down in simple terms what green mortgages are, their eligibility and features, and if it is the right choice for you!
Introduction to Green Mortgages and Their Environmental Benefits
A green mortgage is a home loan specifically offered for properties that meet sustainability standards or a preset criteria by the bank. These standards commonly refer to properties that have features like energy-efficient appliances, solar panels, water-saving fixtures, and smart systems that minimize excess usage of resources.
Opting for a green mortgage is financially and environmentally beneficial. Green mortgages are a way for you to invest in your home and a sustainable future. With a green mortgage, you get to enjoy the benefits offered by your bank, save on monthly bills and at the same time, make a positive impact on the environment. Energy-efficient homes lower your monthly utility bills by reducing electricity and water usage. They also reduce your carbon footprint, contributing to the country’s efforts to mitigate climate change.
Features of Green Mortgage Programs
Compared to regular home loans, green mortgage programs come with unique features and benefits, depending on your selected bank.
Green mortgage programs are tied to the Green Mark Certification. To qualify for the green mortgage program, your property must hold a BCA Green Mark Certification and it must be awarded within the past three years. This is made to ensure that your home meets the Green Mark’s regulated standards and recognized performance.
There are several financial benefits offered by banks to encourage consumers to adopt a sustainable and environmentally friendly lifestyle. Banks like HSBC, Standard Chartered and OCBC offer discounts on pricing for mortgage loans and voucher rebates from electricity providers. On the other hand, Maybank and UOB provide shopping vouchers instead.
The program is designed in support of sustainable practices where homeowners and homebuyers are rewarded for choosing environmentally friendly options, helping to drive a nationwide shift toward greener living.
Green mortgages are also in alignment with Singapore’s Green Building Masterplan, aiming to have 80% of all buildings certified green by 2030. By choosing a green mortgage, you contribute and become a part of this larger sustainability movement.
Financial Incentives, Grants, and Discounts for Green Mortgages
Banks in Singapore are increasingly providing green mortgages with attractive benefits to encourage sustainable choices. Here’s a brief overview of what the major banks in Singapore are offering:
| Bank | Green Home Loan Incentives & Benefits |
| HSBC | Enjoy an evergreen waiver of the conversion fee when repricing |
| Standard Chartered | Reduced interest rates for SORA-linked loans. |
| OCBC | Competitive rates for green mortgage packages. |
| UOB | Apply for a UOB Go Green Home Loan online and get up to S$2,500* cash rewards. |
| Maybank | Green Home Loan customers will receive a complimentary Indoor Garden Smart Pot. |
| CIMB | From now till 31 Dec 2025, get S$200 eCapitaVouchers* when your Singapore private property has a valid BCA Green Mark Award for certification year from 2022 onwards – Platinum Super Low Energy / GoldPLUS Super Low Energy / Platinum / GoldPLUS. |
These benefits are offered with the aim of making green mortgages appealing while helping you offset some initial costs associated with attaining your energy-efficient homes.
How to check if a property has been awarded the Green Mark
Your property will be qualified as green and you will be eligible to apply for green loans if your property is awarded the Green Mark by BCA within the past three years. The BCA Green Mark certification evaluates a building’s sustainability in terms of energy efficiency, water conservation, and environmental impact.
To verify if a property is certified by the Green Mark:
- Visit the SLEB Smart Hub’s Green Mark buildings directory.
- Search for the property and filter results by award level (e.g. Gold, Gold Plus).
- Ensure the certification is within the past three years.
The SLEB listing is updated annually and excludes legislated projects and non-disclosure projects.
Should you purchase Energy-Efficient Homes with Green Mortgages
Purchasing an energy-efficient home offers both financial and environmental benefits. Energy-efficient homes reduce energy and water usage, leading to lower utility bills. Features like solar panels, LED lighting, and water-efficient fixtures help you save money while contributing to sustainability efforts. Green homes are also healthier to live in, with better indoor air quality and natural lighting, enhancing overall well-being.
Energy-efficient homes come with a higher upfront cost, however, the long-term savings on utilities and the financial incentives provided by green mortgages can make them a smart investment. As sustainability becomes more prevalent among homebuyers, green-certified properties are likely to hold or increase in value, making them a considerable choice if you are looking to save on your finances while enjoying eco-friendly living.
In Summary
Overall, green mortgages combine the benefits of sustainability and homeownership. They reward eco-conscious buyers with financial incentives while supporting Singapore’s long-term sustainability goals.
You can start by checking your property’s eligibility, exploring your options, and taking a step towards a more sustainable future. If you need further help or guidance, you may consult a mortgage advisor at Redbrick. We can help you understand the complexities of green mortgages better and provide you with tailored advice based on your financial ability and goals.
