If you’re looking for an ethical home loan, you’re not alone. More people are looking to invest their money in businesses and organizations that align with their personal values. Unfortunately, many of the big banks don’t meet these standards. They continue to subsidize fossil fuels and other damaging industries, which has led to a decline in public trust. If you’re looking for a more sustainable and responsible way to finance your home, speaking to ethical mortgage brokers can help.
A home loan is one of the largest financial commitments you’ll ever make. Therefore, it is essential to know where your money is going. You may believe that because you are only one person, your home loan will have little impact on the community and the planet. However, banks benefit handsomely from home loans. Choosing a bank for your home loan can be an essential decision, not only for you but also for society and the environment.
Finding lenders who are devoted to treating their customers, employees, and environment ethically is more difficult than it appears. You may even be unsure whether an ethical bank exists. This is where mortgage brokers come in. So, how does one go about finding ethical mortgage brokers in Melbourne?
How are ethical mortgage brokers different?
Mortgages or home loans are big commitments. When you’re ready to take the plunge and buy your first home, it’s important to work with a mortgage broker you can trust. When most people think of a mortgage broker, the first thing that comes to mind is honesty and trustworthiness. After all, a mortgage broker is someone you’re entrusting with one of the biggest financial decisions you’ll ever make.
Mortgage brokers are experts in the home loan industry and can help you find lenders who align with your values. They work with you to understand your goals and needs, and match you with a lender who meets those criteria. Ethical mortgage brokers work with lenders who they know treat their customers, employees, and environment ethically. They do not only act in your best interest but also takes into account the social and environmental impact of your decision. This ensures that you’re getting the best possible deal on your home loan while also supporting responsible businesses.
Here are a few factors we laid out for you to consider when looking for ethical banks in Melbourne CBD
First is the influence on the environment. While many banks continue to subsidize fossil fuel businesses and other environmentally destructive behaviours, some are taking a different approach. For example, Bank Australia refuses to invest in fossil fuels. It’s even launched a Clean Energy Home Loan for consumers who want to build green homes.
Other banks also vowed to quit supporting fossil fuels. Instead, they invest in more sustainable projects despite previously sponsoring them. Suncorp Bank committed to a moratorium on all future fossil fuel financing and insurance, with plans to phase out existing agreements by 2025 and direct investments by 2040.
Another important factor to consider is how a bank treats its employees. The way a company treats employees is usually a reliable sign of how they will treat their consumers.
Beyond Bank, for example, gives their employees two paid days to volunteer in their community each year, providing a wonderful opportunity for employees to engage with their community in a rewarding way.
The third factor to look into is a bank’s impact on the community. Banks should always prioritise the needs of their customers and that includes more than just caring for profit. They should invest in what their customers invest in, support what their customers support, and work to fund impact-driven individuals, organizations, and causes. ME Bank, for example, has donated money for breast cancer research and supported the HESTA awards, which honour heroes in the healthcare industry who make a significant difference.
The BFG Impact
It can be difficult to navigate the complex financial industry on your own. Securing a home loan that not only benefits you but also benefits the environment can also be a challenge. With BFG, you can rest assured knowing that we will help you find a good deal for yourself, the society, and the planet.
We’ve established relationships with impact partners and compare loans from over 30 lenders. We handle all communications with them so you don’t have to. We utilize our experience and relationships with lenders to discover the best house loan for your needs and negotiate better terms for you, saving you time and money. Though not all of our partner lenders are ethical banks, we help cover a percentage on the difference in rates if your preference is an ethical bank. If a traditional bank is your best option, we calculate the contributions of your home loan that will be invested to fossil fuel projects. We plant trees of equivalent value on your behalf as your carbon offset.
Anyone may acquire a home loan, but how many of them can say that their loan changed the lives of another family? BFG clients leave not only with a great home loan but also with the opportunity to help families in need. We say a home for a home – receive your home loan, and another family gets a home built. Like a buy one get one free deal. What’s even better? We do this at no cost to our customers since we get paid by the lenders!
Ethical Mortgage Brokers You Can Trust in Melbourne CBD
If you’re ready to take the next step and want to multiply your impact, contact one of our expert brokers. Have an obligation-free discussion at any time or visit us at our office in Melbourne CBD.