There are banks that can finance amounts of up to one million dollars for the purchase of this type of building in the country.
Álvaro Cedeño says that for several years he was searching for the “perfect house”. He indicates that he was always interested in a sustainable home, that is, that the materials for its construction have environmental certifications, that the water and electricity installations seek to save resources.
In 2019, he found a private citadel on the road to the coast in Guayaquil that met these requirements and was encouraged to buy it: “I was in plans, but I took a chance. I made the payment plan and now I am waiting for the mortgage loan. In March they would deliver it to me. I liked that there is even a private forest, the cables are buried. I believe that as long as one can reduce their carbon footprint, we are contributing to the planet”, dice.
Álvaro has the process of the loan through the Bank of the Ecuadorian Institute of Social Security (Biess). He assures that the construction company of the citadel not only works with the Biess but with several private banks.
In Ecuador, according to the Association of Private Banks of Ecuador (Asobanca), there are four entities that have so-called green financing in their portfolio: ProCredit, Produbanco, Pichincha and Bolivariano. Within this segment are loans for sustainable housing.
To obtain this financing, sustainable homes must have environmental certifications such as that granted by the International Finance Corporation known as EDGE (Excellence in Design for Greater Efficiencies, for its acronym in English) or the Certification SORROW (Leadership in Energy and Environmental Design, for its acronym in English).
The EDGE certification was created to establish a new standard of sustainability in the construction of buildings in emerging countries. This certification has a digital calculator where the measures for saving water, energy incorporated in building materials and energy in general are located. By complying with at least 20% of each item, it is registered. An auditor verifies the information and issues the document. The preliminary certification is given in design and the final one at the end of the project.
A sustainable home can achieve savings of 50% in energy consumption, 40% in water, 70% in solid waste and 39% in reduction of carbon emissions, according to LEED certification, for example.
To promote this type of environmentally friendly construction “Financing for the purchase of sustainable homes is a key ally, since it promotes the development of projects and their sale, by having economic incentives for natural persons and advice for builders”, says José Ricaurte, Vice President of Retail Banking at Produbanco.
Generally, a green home is defined from the conception of its design. In this aspect, measures such as the use of natural light, the use of materials with low embodied energy and low environmental impact, insulation of the home, reduction of energy and water consumption, and, above all, thermal comfort inside are considered. .
In addition, other aspects are taken into account, such as LED lighting, control sensors with lighting in outdoor areas, efficient heating or cooling systems, natural ventilation, smart energy meters, among others, says Francisco Bonilla, Banco ProCredit Credit Coordinator. .
“We do a technical analysis of the home, in order to determine the savings and assign the preferential financing conditions. If the client is going to acquire a home with the EDGE, LEED or similar certificate, the preferential conditions could be automatically applied. In the event that the home does not have the certificate, our technical experts carry out an analysis“, Add.
Since 2012, ProCredit has had a green financing line, called EcoCredit, to promote investments in energy efficiency, renewable energies and environmental measures. Since then, the institution has placed more than $160 million in 1,500 green credit operations. In the specific case of sustainable housing, two years ago when they started with this financial service, they have granted a total of 127 loans, which represents $14.5 million.
Buildings are presented as a housing alternative for young people in Ecuador
Meanwhile, Produbanco has delivered $18 million for the construction of projects with sustainability certifications. Regarding the mortgage product for natural persons, a new product was launched on the market that contemplates an economic incentive for the mortgage loan operation when buying a home that has environmental certifications. To access this benefit, clients must present the international environmental certification of the home, for example, the EDGE certification.
For mortgages for natural persons, depending on the payment function of each client, Produbanco can finance up to $1,000,000. Ricaurte affirms that betting on the purchase or construction of these homes also generates benefits in the future, since the probability of obtaining a higher value of the property in the long term increases as it is sustainable.
Both Bonilla and Ricaurte agree that the demand for green loans is registering sustained growth in the local industry. In fact, Banco Bolivariano, in November of last year, reported that 50% of a $30 million loan it received from IDB Invest would be used for green credit.
What are the requirements to access a green mortgage loan in Ecuador?
It must be remembered that any type of financing always requires a personal financial analysis, in order to know all the pros and cons of this important decision. The main recommendations are:
- Assess ability to pay. The ideal is to meet the same analysis criteria of a normal mortgage loan, that is, the installment must represent a maximum of 35% of the debtor’s total income and have at least 25% of the value of the house.
- Find the right home. This is a fundamental step, since the house must have an environmental qualification or certification, as declared by the real estate project.
- The client must present the environmental certification of their home or the building of the property to be acquired, this can be an EDGE or LEED certification.
- The bank will carry out the credit analysis to define if the client meets the payment capacity, as well as to determine if the asset meets the conditions of an adequate guarantee.
Decorations can also be sustainable
Dream Home is a store that creates high-quality and resistant furniture that has included products made with Ecoyarn in its portfolio, a material that comes from the recycling of Tetra Pak® containers, which is combined with fabrics, cushions and other fibers, to offer its customers innovative furniture.
With more than 1.6 million Tetra Pak containers, a building is built in Bahía de Caráquez
The store is constantly looking for applications and designs that introduce sustainable materials and that contribute to the construction of a circular economy based on interior decoration.
Since its creation, Dream Home experimented with various options. Patricia Bravo, its owner and founder, assures: “We create our own elements and we always strive to have products that are distinguished by quality and design, we also seek to use organic raw materials and natural sources; the problem is that they do not last very long in open spaces. The main benefit of our furniture is that we contribute to caring for the environment and encourage our customers to be ecologically aware”. (I)
Paul is a talented author and journalist with a passion for entertainment and general news. He currently works as a writer at the 247 News Agency, where he has established herself as a respected voice in the industry.
