Credit score. Employment status. These are the kinds of factors that banks look into when they’re deciding whether to give you a home loan. A handful of new studies suggest that they should also be looking at sustainability.
Whether someone defaults on their mortgage is normally associated with “hard” factors like unemployment and credit scoring. Sustainability hasn’t ever figured in anyone’s risk calculation (as far as we know).
But maybe it should. Two new studies show a strong connection between the sustainability of homes and the likelihood homeowners will pay their mortgages. The research should influence how mortgage providers think about clients.
A 5% increase in the proportion of residents walking decreased defaults by 15%.
