How ethical is your home loan provider?

Is the Coq au Vin pasture-raised? Just as the ethical food movement drastically changed the way we dine at restaurants, a financial startup is challenging the way Australians think about their super fund.

Just as the ethical food movement drastically changed the way we dine at restaurants (“was the Coq au Vin pasture-raised?”) and the backlash against fast fashion has impacted the way many of us buy clothing, a financial startup is challenging the way Australians think about their super fund.

Future Super, launched in 2014, is Australia’s first 100% fossil-free super fund.

Australians collectively have more than $2.5 trillion in super and research shows more than 50% could be exposed to polluting companies, whereas only 2% goes towards climate solutions such as renewable energy. (Environmentally-focused company MarketForces, has created tables comparing the fossil fuel exposure of banks. Consumers can view the banks that are contributing to fossil fuel exposure, as well as those that aren’t.)

Future Super is also an organisation that, unlike some banks and mutual funds, does not invest in gambling, tobacco or weaponry.

“We empower everyday people to invest in a better, more sustainable future,” says head of engagement Michael Bones. “The first step is identifying and excluding companies whose products addict (e.g. gambling and tobacco), pollute (e.g. fossil fuels) and kill (e.g. live animal exports, weapons manufacturing).”

“We holistically screen out those activities and have a process for identifying companies that also have a positive impact as well.” Future Super recently launched a new investment option with a 20% investment target in renewable energy.

The super thing

With more Australians potentially accessing super to put towards a home deposit in the future – thanks to a new government legislation enabling home buyers to withdraw a maximum of $30,000 of contributions, plus earnings, from July 1 – super is front of mind for many people. Bones says the company has grown quickly: more than 10,000 Australians are investing more than $300 million with Future Super.

The same breakdown in bank resources could be used to help people switch their home loan to a more environmentally conscious bank or lender, says Bones.

“It’s kind of like buying caged eggs versus free range eggs. People don’t like a particular practice and want to use their consumer power for good. The thing about home loans and banks historically is that they haven’t really stacked [being environmentally conscious] on the radar for people. Banks’ highest margin products are loans – do you agree with what they’re doing with the profit they make from you?”

UNO works with a number of lenders that don’t have a record of funding fossil fuels, including Adelaide Bank, CUA (Credit Union Australia) and Suncorp Bank. With increased focus on ethical investing, it’s likely there’ll be more added to the list in the future.

“People are starting to want to look under the hood of what’s being done,” says Bones. After all, your home is an investment and the way you’re funding it is important. “Where did my return come from? Did it come from a poker machine company? Am I taking money from the pocket of a poor person? Or am I building a solar farm and building clean energy through my super?” he says. “People are starting to make that connection.”

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Scott Wilkinson was my broker last year when I sought finance for a new property investment and refinance for my property port folio. He was an absolute delight to work with. He was always professional, on time and always available to talk at a moment's notice to discuss my credit options and give well considered advice; usually this was very much after-hours due to my work commitments during the day. He was always happy to talk. I had not used a mortgage broker in a long time opting to do the re-financing myself. This was primarily due to disappointing experiences I'd had with mortgage brokers in the past. However with the increasing complex nature of dealing with credit providers, I could see that I needed a good advocate to act on my behalf for this particular refinance. In all honesty I did not hold much hope that in the current credit environment I would be able to secure the finance I required for the new property investment I was wishing to secure. Scott found a way however and was able to secure the finance along with the refinance of my portfolio. I have since referred friends to Scott and I know they have been very happy with his work. He is ideal for property investors who have busy day-jobs and need someone who understands property investment strategy and is able to tailor credit advice and options to their needs. Scott provides this advice and information in a way that is clear and concise. He kept me up to date continually during the application process. He made what could have been a very stressful and frustrating process easy and straightforward. I could not recommend Scott and the team at UNO Home Loans more highly. They are all a delight.
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We chose Uno Home Loans from their impressive web site knowing we were going to find it hard, on many fronts, to qualify for a home loan. We were incredibly fortunate to be assigned Mike Parsons as right from the get-go, despite the complexities, he hit the ground running for us. He was incredibly knowledgeable, with years of experience but what was immediately apparent and impressive was that he was totally invested in getting us over the line, doing absolutely everything possible, including working around the clock. Despite it being a relatively small loan in the order of things, Mike never missed a beat, getting docs ready, following up and answering every request from the proposed funder immediately. He kept us informed on progress the minute anything happened, and again if anything needed to be done, he was right on it. In short, we highly recommend Uno, and Mike, knowing what a remarkable job he did, over many weeks, to get us our loan. He got us a great deal, with far better rates than we expected, so we couldn't be happier. In fact, without doubt, you'd be hard pressed to find a more personable, sharp, hard working, dedicated professional who clearly prides himself on getting his customers standout results.
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