The move follows a similar announcement from arch rival BOI earlier in the year.
With concerns around the environment and climate change becoming more and more of an issue for people, businesses are increasingly trying to promote their ‘green’ credentials to customers. And the banks are no different!
Earlier in the year Bank of Ireland launched a suite of discounted 'green' home improvement loans and mortgages to encourage and reward homeowners and businesses to be more energy efficient.
AIB has now got in on the action by launching a discounted mortgage rate for customers who are buying an energy-efficient home.
What’s the deal?
From today AIB is offering a new reduced interest rate of 2.50% fixed over five years for customers whose property has a building energy rating (BER) between A1 and B3. This represents a reduction of 0.35% on AIB’s standard five-year rate and makes it the lowest five-year rate currently available to first-time buyers.
For a mortgage of €300,000 over 25 years, the 'green' mortgage customer will have repayments of €1,210.56 per month, compared to repayments of €1,258.47 per month for a standard five-year fixed rate - a saving of almost €50 per month or almost €600 per year.
AIB also offers free day-to-day banking for customers who pay their mortgage through their AIB current account.
Colin Hunt, AIB CEO said: “Climate change is the most important challenge facing this generation. At AIB, we are acutely aware that we are only at the beginning of our sustainability challenge and that there is a great deal more to do. We recognise that supports are needed to help change societal behaviour, and we will not be found wanting in helping our customers adapt and transition. The green mortgage is the latest in a series of propositions in which AIB is backing climate action.”
Who’s the mortgage rate available to?
From today, new customers who have been approved for a mortgage with AIB will be able to apply for the 'green' five-year fixed rate.
However existing customers who have already bought a home that has a BER of B3 or higher can also apply as part of AIB’s mortgage rate amendment process.
The rate is only available to owner occupiers who are buying or living in a home that's their principal private dwelling. In other words the offer isn’t available to buy-to-let investors or people who are buying or living in a property for business reasons or as a second home.
The rate is available to first-time buyers, movers and switchers.
Although AIB’s new rate is competitive, make sure you shop around and compare all the rates on offer from all lenders before you commit, as there may be cheaper rates available for your circumstances.
The good news is that you can check out all the best mortgage rates here on bonkers.ie right now!
What do you think?
Is this just a ploy to appear more 'woke'? Or is this legitimately good news for the environment? Get in touch and let us know!