Broker with an emphasis on ethical lenders

Discussion in 'Loans & Mortgage Brokers' started by Bbutlerau, 22nd Feb, 2020.

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  1. Bbutlerau

    Bbutlerau Member

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    My partner and I are wanting to move from renting to owning our first home, hopefully in the Footscray area.
    I'm currently with Bank Australia who have an emphasis on clean money and not lending to fossil fuel companies etc.
    This is important to us so we were wondering what other lenders are similar and in particular if there was a broker around who could help us.

    Thanks
    Brad
     
  2. euro73

    euro73 Well-Known Member Business Member

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    I don't know that there's any way to know for certain what exposure any lender or its subsidiaries have commercially... if you look at Adani for example, all the majors have rejected lending them any money...does that mean they are ethical?
     
  3. Bbutlerau

    Bbutlerau Member

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    I realise I won't be able to fully rule it out as Boone will open thee books per say but I can still try and support those who are trying. Makes me feel better at least :p
     
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    We get this a bunch.......

    Ethical and Moral is a fluid and opaque context to suit our personal needs...................we all make those value decisions every day !


    As a scientist and a pillaging geologist by background, and spending a bit of time in My native country of Germany..............I will bite :)

    One can likely have a much larger impact by changing personal consumption habits and buying decisions, and by doing so influence others by daily example, and thus develop a deeper understanding of what those decisions REALLY mean, consumption wise of resources generally.

    We all know the obvious things we can change on a practical daily basis. Run LED light bulbs, smaller, more fuel efficient cars, take a train instead of a plane for long distance travel (now there is a big one, not so easy in OZ).

    Some big ones that many DONT do and arent aware of yet:

    Drinking Water:


    Drink water from your municipal supply, with point of consumption purification.
    Its not just the oil and energy used to package and TRANSPORT the stuff, but its also the effects of some larger local production places that draw from aquifers and affect the local ecology in doing so. In the US, most lower cost bottled water I recall comes from plant treated municipal supply, a slightly better solution.

    Us Germans love our bottled Kurwasser. We are great at recycling the bottles.............. but mostly have little care or want over the Energy Impact of the production, packaging and transport of same. We generally make a personal judgement call over the benefit over the impact, without knowing the core data to do same. German society generally is very focussed on energy conservation, Solar production and domestic waste separation, recycled sewerage etc so its not like they dont care. Its a value call.


    Hot Water:

    For many households, this is the number one energy consumer. Solar systems have been around and mainstream since the 80s. We just replaced one from 1985 !

    Buy quality product that will last. Unlike Photovoltaic cells that produce power, thermal accumulation technology doesnt change hugely every few years. Buying a cheapy unit that needs replacing every 10 years uses heaps of energy and resources to replace, transport and install.

    If one cant do that, because you are in a rental, can you switch to off peak ? yes its still chewing power from the grid, but at least you will be using dead base load, and save a few bucks in the process.

    Gas............. love the fact that you can run this for 24 hrs a day :) Especially relevant to businesses or those of us with teenage kids :). While touted as an energy efficient method of HWS, due to the energy being produced at use point, and a "clean burn" , Solar will still beat this out over a longer term, once the energy "cost" of production of the solar HWS has been " energy and resources amortised". LPG is worse still than Natural Gas,

    Eat local Produce.

    Self Explanatory - even a veggie and herb patch can make a significant personal impact. That bit is like the eutopia of all homes have solar and battery power, but also has significant upstream impacts that might not be all good.


    More fuel efficient transport


    Thats an interesting one that has been a little oversold at this time I suspect

    Not even walking is free from an energy viewpoint :), neither are pushbikes, minimalist yes, free ? no.

    Hybrid and More recently Full Electric vehicles

    Someone else more skilled can do the detail research, but I have a hunch, just a hunch and not enough time.

    Based on an average 15 k per year travel cycle,

    Hybrids SOAK up more energy than they give back, unless the 15 k is all city slow use.

    EVs will take 5 to 10 years to be neutral, assuming 2 things - that conventional cars dont become more efficient, and your battery set in the EV lasts that long.

    Further, this all assumes that one buys a NEW car, and doesnt replace an old one that needs to go to the wreckers.

    What if..................... minimalist thinking. My nephew has an ovloV C30 DRIVe diesel. Its a 2011 I think and is a decent safe and fun car to punt around.

    Compare to say a Nissan Leaf, ok thats a little bigger, but its as close as we can get in OZ

    If he keeps the C30 vs owning the Nissan, whats the nett energy impact, if we use CO2 emissions as a guide to USE consumption, the Volvo emits 1500 kg of CO2.

    The Nissan Leaf emits ZERO for that same distance. But does need grid power = 1650 kg of CO2 in mainland states of Oz, but only 400 kg in Tassie, because much of the grid power comes from Hydro.

    So for the moment, id say keeping the volvo alive vs sending it to the wreckers is a good minimalist decision, seeing the Leaf also needs an investment in energy and resources producing the product

    Where the benefit will come middle term, is we can produce enough Power to run the EV on renewables, which isnt yet a real option for mainstream Australia.............


    Govs, and corporations SHOULD do more and many are. But as one of my biz mentors says......... YOU DO IT.

    Feeling good about one's decisions isnt a bad thing at all. As an example, your concerns have allowed us to share this information with many peops, and if just one takes notice and takes some of it on in their personal life.........

    Any fool can count the seeds in an apple, No genius can count the apples from the one seed.


    Ta

    rolf
     
  5. Biggbird

    Biggbird Well-Known Member

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    Those things all seem like great things to do Rolf, but not doing them doesn't negate the potential benefits of changing to an ethical lender, whatever you perceive them to be.

    Also, the chances of somebody who is looking for an ethical lender already doing a lot of those things seems reasonably high to me. Could be wrong!

    Still, I agree that there are a lot of little things that people don't consider and which they could easily change, myself included!
     
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  6. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Im not suggesting that this selecting ANY business based on one's value set is wrong, that was not my intention. We all have our values in different ways around different things like sex, politics and religion and as any diplomat will tell us - dont touch these.

    the term ethical to describe not funding Fossil fuels and related business is a bit to " all encompassing" for my liking.

    I prefer specifics, dont like generalisations and opaques .

    We dont lend to companies or individuals that receive revenue from the discovery, extraction, research, processing, marketing, retailing of fossil based products or services.

    That I dont think we will see, which is one reason why I said, values are fluid and opaque, personally and corporately. I know this because mine are. Discretionary discernement is human and Darwinian.



    ta
    rolf


    n
     
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  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    The O'Rielly Family can help you navigate this.

    have known Dad for near 20 years, and Brendan for near 10. Strong focus on clients needs and outcomes

    Team MMO - Canberra's leading mortgage professionals

    ta
    rolf
     
  8. Lindsay_W

    Lindsay_W Well-Known Member

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    Bank Aus are one of the best in this 'ethical' space
    If it turns out you can't afford to borrow what you need with an ethical lender would you consider a non-ethical lender instead?
     
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  9. Morgs

    Morgs Well-Known Member Business Member

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    TMB group would be worth a look in this space:
    Sustainability | Teachers Mutual Bank
     
  10. albanga

    albanga Well-Known Member

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    Heritage
    My State

    I know a few others do as well but these are some of the bigger ones.
     
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  11. Bbutlerau

    Bbutlerau Member

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    Thanks for all the replies. Rolf I agree we can all do better in everyday thing and I believe being picky on who gives you a loan based on what they do should not be overlooked.
     
  12. Bbutlerau

    Bbutlerau Member

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    Hi Lindsay. Do you have any experience with them as a lender? I agree that will have to do some should searching if one of my preferred lenders won't cough up.
     
  13. Bbutlerau

    Bbutlerau Member

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    Hi Morgs. My partner is a teacher, do they offer benifits to teachers at all?
     
  14. Morgs

    Morgs Well-Known Member Business Member

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    They're member owned, and one of their quirks is that you need to be employed in the education industry in order to be eligible to join (or have family with industry/membership). They have a few policy quirks that benefit teachers. They also have Unibank/Firefighters brands which fill similar niches for those industries.

    Join Us | Teachers Mutual Bank
     
  15. Lindsay_W

    Lindsay_W Well-Known Member

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    I written many loans with Bank Australia and they're pretty great to deal with, have some good products and rates, they are slightly tougher regarding borrowing capacity.
     
    Last edited: 24th Feb, 2020
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  16. Bbutlerau

    Bbutlerau Member

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    That's good to hear. I have a soft spot for them and have been with them (or one of the credit unions they they combined with) for around 15-20 years. I'm hoping our capacity is OK. We would be looking for a place around the 500k mark with 7% or so deposit with a combined pre tax income of 150k. My rough maths seems to think we are in an OK but not great situation.
     
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  17. Jamesaurus

    Jamesaurus Well-Known Member

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    Oxymoron in this title?