Do you care about the environment and the planet?
In acting as your mortgage broker, we offer choices to you on many levels as to which lender you wish us to process your loan application to.
For many clients in complex situations, the challenge is simply in obtaining the required loan amount. With an ability to work with over 60 lenders, if it can be done, we will do it! The ‘best’ available option may be clearly one lender once the research is done.
Then we have the clients who can get a loan anywhere – their income and deposit are covered, no complications. What matters most may be just the lowest interest rate available. Again then, a clear choice can be provided.
For some clients though what matters most is the credibility of the lender. Then things can become far more subjective!
Environmental, Social and Governance (ESG) is shorthand for an investment principle that prioritises environmental issues, social issues, and corporate governance. Values like community and sustainability are increasingly important among Australian consumers. In the world of where to invest your savings this is now a well-recognised and established focus.
Those values are also important and prioritised in some banks.
Customer-owned banks, or mutual banks, are the leaders in this field. They prioritise member benefit over profit maximisation, setting them apart in the financial landscape. These banks are not listed on any stock exchange, they are not owned by random shareholders, they are owned by those who have bank accounts with them.
By then reinvesting profits into the community, these institutions drive economic resilience, social equity, and environmental sustainability. Mutual banks leverage their community-centric approach to compete effectively, they offer competitive rates and personalised services. This fosters deep trust and loyalty among their customers, who understand these banks as more transparent and ethical
Their concept of a long-term lender-borrower relationship, built on trust, shared values and supporting their communities does not mean a sacrifice from the borrower: Positive experiences, convenience and interest rate offering can be better than the ‘major’ banks. These banks have proven to be extremely popular amongst our clients.
ESG is a rapidly evolving focus in lending. Changing customer attitudes and developing awareness of sustainability issues in society are major factors pushing the change. Many banks are now advertising their ESG credentials.
A key factor in my analysis of these credentials is to look for B Corp Certification – this is an independent international accreditation system recognising corporate leaders in the global movement for an inclusive, equitable, and regenerative economy. They measure a company’s entire social and environmental impact.
If you are a client whose lender is B Corp Certified, then congratulations! It may have been accidental for you, but you can feel happy that you are contributing to a better world whilst also being on a great rate and receiving premium service. Best of all worlds.
Interest rates and monthly repayments on a loan will always be the number one priority for borrowers. However, there are other considerations that also matter when a client chooses their preferred lender.
We see ESG considerations being increasingly important to our clients. Mortgage broking now processes more than 70% of residential lending Australia wide, and we now have access to more than 60 lenders. This has opened new possibilities and options for you to consider when you borrow. When faced with choosing between banks with equivalent interest rates and one has B Corp Certification, that will often be the deciding factor.
So, what matters to you?
Integrity Finance Australia has been serving the community since 2006. If you have any questions on the issues raised in this article or borrowing capacity or your home loan in general, then please email support@ifafinance.com.au , or call us on 03 9511 8883.