Big banks jump on green bandwagon

Some banks are now offering discounted mortgages to people buying eco-friendly homes and Energy Star certified homes. The trend toward green living has finally caught the attention of the banking industry.

Banks have watched as consumers have made greener choices in everything from washing detergent and light bulbs to high-efficiency furnaces and solar energy panels. With consumers interested in greening their lives, most of Canada's major banks have seen the opportunity to offer "green mortgages," which offer homebuyers a discounted interest rate and other incentives to buy more environmentally sensitive houses or perform upgrades aimed at lowering their environmental footprint.

Consumers, especially first time buyers, are increasingly looking to green home upgrades to help the environment and lower the carrying costs of owning a new home.

According to surveys conducted by Leger Marketing, while Canadians are interested in lessening their impact on the environment, the decision to buy a "green home" is really being driven by saving cash, and more than 59 per cent of respondents cite financial savings as the main reason for making eco friendly upgrades and purchases. The results are not surprising, considering more than 51 per cent of survey respondents say utility costs are the biggest surprise financially when it comes to owning a home.

Having new windows, doors and a high-efficiency furnace can go a long way to help make those carrying costs more palatable, according to Leger, which found 92 per cent of Canadian respondents recognize the cost advantages of energy-efficient home upgrades.

It also found nearly half of all homebuyers plan to make investments in energy-efficient upgrades in the next year, especially with the anticipated extension of the federal government's ecoENERGY Retrofit program. The program allows Canadians to write off a portion of their green home renovations on their taxes.

The green trend isn't just infecting resale homebuyers. According to an EnerQuality Green Building survey released in November 2009, more than 40 per cent of Ontario homebuyers are willing to pay up to $10,000 more for a new green home, or a home that is Energy Star certified. It's almost double the 22 per cent of homebuyers who were willing to spend that amount of money in 2008.

While almost all of Canada's big banks are offering green mortgages, the loans aren't open to just anyone. Buyers must qualify for the green loan by proving that the house they are buying meets certain green energy standards, or that they will be completing certain green upgrades to the home shortly after moving in.

Incentives offered by the banks vary. Some will provide rebates equal to the cost of a home energy audit, which is around $300, and then a cash back incentive that can be used for green upgrades. Others offer discounts to posted mortgage rates.

Though wading through all these new options proves to be a daunting task, homeowners and those who are looking to make the move to a greener lifestyle have been diligent in getting all their goals in order with help from the banks and the useful information they provide.

Companies who are participating in this new wave of going green aim to make a considerable mark in lessening the disconcerting carbon footprint.

Dubious green products.

Laundry brands including Ariel and Persil are misleading consumers with unsubstantiated eco claims, according to a Which? report. The report by the consumer watchdog found that almost half of the 14 laundry, toilet cleaner and nappy brands surveyed made environmental claims that could not be supported convincingly. All the toilet cleaners in the report including Tesco’s Naturally brand and Sainsbury’s Cleanhome brand and Green Force cleaners were criticised for making unproven claims. Tesco’s Naturally toilet cleaner claims that it contains no phosphates and leaves no hazardous chemical residues, but non-eco cleaners do not either. Which? says Tesco has agreed to change its packaging as a result of the report.

Ariel and Persil laundry detergents both carry a logo that implies the products encourage greener behaviour but the report found that it was unclear what environmental issues it relates to. Products targeting green consumers have a responsibility to be clear and unambiguous; while claims may be scientifically proven, the evidence has to be accessible to the average consumer. Here we are, trying to do good for the world but there are people who are trying to take advantage of those who care. Seriously guys. Have we humans lost respect for each other and just see one another as walking, talking money signs?

Tip of the day: Get spotless windows by mixing 2 tablespoons of white vinegar with a gallon of water, and dispense into a used spray bottle. Squirt on, then scrub with newspaper, not paper towels, which cause streaking.

Check it before you buy it.

The government in Seoul will be tightening its inspection on eco-friendly farm products sold on the market to better meet consumer demand for safe food.

The National Agricultural Products Quality Management Service said the measure is aimed at fighting a steady rise in products that fail to meet set standards for residual pesticides and chemical fertilizers. Last year, the state-run body checked 13,444 products that have received so called green certificates and found problems in 391, up from 184 detected in 2007 when 9,353 products were checked randomly. Products with "green" certificate, which South Korea have been issuing since 2001, are in high demand and fetch higher prices on the market than ordinary agricultural goods and those imported abroad. Those that fail to meet quality control standards will be barred from using the certificates in the future. In serious cases, tougher administrative measures may be taken.

Information on farms that raise certified eco-friendly products will be posted on the internet (www.enviagro.go.kr) so consumers can check the products they are buying. It is sad knowing that there are people who are exploiting "green products", because they are taking advantage of the green consumers like you and me who buy these products because we actually care for the Earth and our health.

Tip of the day: Please check the products first, whether it is an authentic green product, before purchasing. If you do find a fake green products do let us know :)