Housing loan

A housing loan is suitable for buying, building or repairing a new home. A housing loan can be applied for from banks. Each bank has its own loan policy, and thus you will have to make the choice with regard to finding a suitable bank. The state refunds income tax paid on housing loan interest after filing of a tax return.

In the case of an ordinary housing loan, banks require self-financing, as well as the real estate being purchased is pledged as collateral to secure the loan. The self-financing percentage may be lower in the case of leasing, but in that case, the housing belongs to the bank and the possibility of forfeiture is greater if payment difficulties arise. Loans are available from the KredEx Credit and Export Guarantee Fund with self-financing of a minimum of 10% of the value of the loan collateral. Housing loan sureties from KredEx are meant for people who wish to take a loan for buying a new home or renovate an existing one and to reduce their down payment obligation.

Loans available from KredEx:

  • The young family loan surety can be applied for by families or single parents who are raising a child under 16 years of age; legal guardians are also considered parents.
  • The target group for the young specialist loan surety consists of working specialists who are 30 years of age or under and have higher, secondary specialized education or vocational secondary education.
  • The target group for tenants living in restituted living space.

Tenancy can be certified by a rental contract or certificate from the Population Register. The rental contract must be valid at the time that the credit is applied for. The fact that a family member resides with the tenant can be certified by a rental contract or certificate from the Population Register. To obtain a loan and additional surety for a loan, contact a bank (SEB, Dankse Bank, Danske Bank, Eesti Krediidipank, Parex Banka, Krediidipanga Liisingu AS, Swedbank and Hansa Liising Eesti). The lending bank will arrange for the KredEx surety and later reporting. Alternitives are quick loans (Vivus kiirlaen), car loans (SEB autolaen), etc.

It is also possible to buy housing with zero-percent self-financing, if one has additional collateral (such as a summer home etc). Banks have different ways of calculating the sufficiency of collateral. When, over the years, a sufficient share of the loan has been repaid, the pledge on the collateral can be lifted.


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