European Investment Bank and Deutsche Bank launch climate-friendly mortgage programme in Germany
With a focus on sustainability, the initiative offers discounted mortgages totaling over 600 million euros to individuals seeking to build environmentally friendly homes or upgrade existing properties for enhanced energy efficiency.
The European Investment Bank (EIB) and Deutsche Bank have teamed up to introduce a pioneering mortgage programme aimed at promoting climate-friendly housing and energy-efficient home modernization in Germany. With a focus on sustainability, the initiative offers discounted mortgages totaling over 600 million euros to individuals seeking to build environmentally friendly homes or upgrade existing properties for enhanced energy efficiency.
The EIB's support for the programme includes guaranteeing a 150-million-euro mezzanine tranche in a consumer loan securitization with Deutsche Bank. This collaboration allows Deutsche Bank to extend the benefits of the transaction to its clients through discounted mortgages. These discounted loans are available through Deutsche Bank's Private Bank, including DSL Bank, with BHW Bausparkasse set to join in early June.
To qualify for these low-interest mortgages, borrowers must meet stringent sustainability criteria. For instance, those seeking financing for home modernization must commit to reducing the property's primary energy demand by at least 30 percent.
Nicola Beer, Vice-President of the EIB responsible for operations in Germany, emphasized the importance of climate-friendly housing in reducing energy costs and improving overall well-being. Marjut Falkstedt, Chief Executive of the European Investment Fund (EIF), highlighted the significance of freeing up financing for individuals keen on enhancing the sustainability of their homes.
Achim Kuhn, Head of Product Management at Deutsche Bank, emphasized the institution's commitment to accelerating the green transition by offering favorable conditions for mortgages. This collaboration marks a significant stride towards reducing energy consumption, CO2 emissions, and environmental impact.
The partnership between the EIB and Deutsche Bank reflects a shared dedication to fostering sustainable development and addressing climate change challenges. By providing accessible financing options for climate-friendly housing, the initiative aims to empower individuals to make environmentally responsible choices while contributing to Germany's transition towards a greener future.
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