Millions of homeowners undertake home renovations annually. These days, they’re into energy efficient upgrades.
Unfortunately, members don’t know which energy upgrades make financial sense and too often homeowners finance home renovations outside of credit unions.
Halitra’s software acts like energy efficiency radar for loan officers, which enables credit unions to add energy upgrade top ups to home loans. This approach:
- eliminates the cost of originating a separate loan, and
- removes the complexity of energy upgrades away from members.
Let’s dive into how it all works!
What Kind of Green Loans Are at Stake?
Energy-efficient upgrades—like HVAC systems, new hot-water tanks, air sealing, or insulation—make financial and environmental sense. However, most homeowners don’t plan ahead for these upgrades. Instead, two upgrade situations are very common:
First, something breaks and needs to get replaced. Maybe an AC system finally dies and they want to replace it with a heat pump.
Second, when members buys a home most will renovate their home immediately. Perhaps they want to upgrade the kitchen or renovate the living room/bathrooms/bedrooms.
In either case—and especially in the former—credit cards are the go-to option. Other times, they might go with point-of-sale financing.
Either way, it’s harder on members and credit unions lose out on the home renovation spending market. That’s not ideal.
The Green Property Loan Opportunity
Helping members finance energy upgrades which increase home comfort and value aligns perfecting with the credit union mission to support financial wellness, community development and environmental stewardship. But the math doesn’t always work out.
Originating new $25,000 – $50,000 home improvement loan costs credit unions nearly $12,000, making stand-alone energy upgrade loans hard to justify. Meanwhile, the average US home wastes 35% of the energy it uses which adds up to US housing stock accounting for 20% of annual GHG emissions.
Halitra understands that lending teams are stretched thin, balancing the need for growth with operational constraints. That’s why they’ve built a platform that makes energy-efficient lending seamless, low-cost, and profitable—without complicating workflows or creating extra work.
How Halitra Makes Green Lending Easy
Halitra’s software platform integrates energy-efficient upgrades into the lending process with minimal friction. Instead of creating separate energy loans, credit unions can “top up” existing property loans during mortgage origination, refinancing, or renovation events. This saves time, reduces origination costs, and helps members secure the financing they need—when they need it most.
Thus, green lending becomes a natural part of real estate financing, rather than an extra task on the to-do list. It also opens the door to cross-sell opportunities like HELOCs and lines of credit, providing members with a more comprehensive borrowing experience while driving new revenue streams for the credit union.
Instead of struggling to justify expensive loan originations for home renovation upgrades, Halitra’s approach turns energy-efficient lending into a profitable venture. Members reduce their energy bills, credit unions increase portfolio value, and the environment gets a much-needed boost. Everyone wins.
Here’s how Halitra’s STAR process works:
- Scan: property loan portfolios, measuring energy and GHG emissions footprint.
- Target: identify energy upgrades that will have the biggest impact on energy savings and property values.
- Add: include green energy upgrade top ups as a part of every new property financing and re-financing event, growing loan volume without double customer acquisition costs.
- Report: track utility bill savings for a year to support reporting and demonstrating loan quality improvements that increase net income.
Why Credit Unions Should Care About Green Lending
Beyond the environmental benefits, energy-efficient lending is simply good business. Homeowners are already spending around $500B annually on home improvements, and when buying a home over 80% will renovate within a year of purchase.
Data shows that homeowners are twice as likely to agree to energy upgrades when they’re planning an aesthetic renovation. This presents a perfect opportunity for credit unions.
By integrating energy upgrades into existing loan products, credit unions strengthen member relationships and increase loan volume and profitability. In turn, members get headache-free financing on their home improvements.
Sounds pretty good, right?
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