When "Green" is Not "Green"

I feel a bit like a band wagon jumper writing about theTD will also donate to their Friends of the Environment
"green revolution" that we have heard so much aboutfund a whopping $100! I was first very intrigued in this
over the past few years but understand little aboutoffering and thought about educating myself about this
what's really going on with our environment. One majorreally cool offering from TD Canada Trust.
observation that I have had is that "Green" is bigWhen "green" is not "green"
business!The discount offered on this type of mortgage is 1%
From my order of organic fair trade coffee in theoff their posted rates. At the time of this writing, that
morning, to my home baked organic bread, I mustwould be 5.25% (posted is at 6.25% for a 5 year fixed
admit that I try and go green whenever I can. But whatrate) for a "Green Mortgage". However, at the
for? I have come to the realization that I try and bewholesale level, I can provide my customers a TD
"green" just because I can. I mean, why choose toCanada Trust mortgage priced at 4.79% for a
pollute when I can prevent my immediate surroundings"non-Green mortgage".
from being polluted? Why eat chemically altered food,Here are the facts: On a $200,000 mortgage, the
when I have the choice to do otherwise? Why wasteGreen Mortgage will cost $49,213 in interest based on
money in my business by throwing out scrap papera 25 year amortization with monthly payments.
when I have the choice to write on the other side ofOn the Non-Green Mortgage, the interest cost drops
the scrap? The point that I am trying to illustrate is thatto $44,790 over those same 5 years. That's a $4423
I choose to be "green" because it's what I "want" toDIFFERENCE! It would COST THE CUSTOMER and
do, not because I expect profits from my customersextra $4423 to be "green". However, TD Canada
by being this way.Trust offers "up to" 1% back for being "green". Well on
Where exactly am I going with this? Hang in there.$200,000, that's "up to" $2000.
I own a mortgage brokerage and financial coachingLet's do some math: $4423 - $2000 = $2423 in extra
business. We help clients sort through all of the mentalinterest costs to YOU for being "green"...hmmm...oh
"garbage" & obstacles banks will put clients through,yeah, but TD is donating $100 to the Friends of the
get better mortgage deals and options, and try ourEnvironment Fund or are YOU indirectly providing the
very best to provide an exceptional level of customerdonation based on the extra $2423 in profit TD just
service that our competitors cannot achieve. I tend tomade because you chose to be "green"?
really notice all of the "little things that make a BIGThe only "green" I can summize in this "green"
difference" when it comes to being a better businessmortgage scenario is the "green" we find in money!
each day. I also notice what the banks and otherThis is an example of big business exploiting the pure
mortgage brokers advertise out to the marketplace.intentions of the customer who just wants to do their
One of these offerings is TD Canada Trust's offer ofpart in helping the environment. This is also a lesson to
The Green Mortgage which gives the customer backthe consumer that just because a company claims to
1% of their mortgage amount if they spend money onbe "green" does not mean that it is good for you!
Energy Star products during the first 6 months ofThose President's Choice chocolate chip cookies are
getting their mortgage. The rate the client will get onorganic, but should you eat the whole box?
the mortgage will be "up to 1% off the posted rates".Thanks for reading!