Housing Loans
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General conditions
- The minimum amount of the housing loan is 6400 EUR (100 138.24 EEK) in Tallinn, and 3200 EUR (50 069.12 EEK) elsewhere in Estonia
- Loan can be applied for a maximum of 30 years.
- Loan can be applied alone or with co-applicant.
- Loan payments may generally form up to 40% of the verified monthly income of applicant(s).
- Self-financing amount minimum 20% of the real estate sales price depending on location and condition of the real estate. Required self-financing amount can decrease to 0% with additional collateral.
- Self financing may be reduced to 10%, if conditions of the Young Family Loan or Young Specialist Loan can be applied to the applicant.
- Required self-financing amount can decrease to 0% with additional collateral.
- Loan security will be mortgage on the object to be bought, built or renovated or any other real estate.
- Object that is the loan security must be insured.
- Arrangement fee is 1%* of the loan amount, min 191,73 EUR (3000 EEK)
Interest
- EUR loan: 6-month Euribor + margin
- EUR loan Nordea Prime rate + margin
Margin depends on:
- Applicants income
- Existing liablilities
- Collateral value
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Loan to value ratio
Loan repayments
Loan will be generally repaid on a monthly basis but it's also possible to make annual repayments. You can choose between equal (annuity) and recessive monthly payment schedules.
- In case of an annuity schedule, the monthly payment will consist mainly of the interest in the starting period of the loan
- In case of recessive monthly payments, the loan principal will be divided into equal parts during the loan period, to which interest will be added. The sum being paid will continually be reduced since the interest is calculated on the basis of the loan balance.
- If desired, your monthly payments depending on loan sum, term and interest can be calculated with loan calculator.
Repayment grace period
You have the option of not repaying the principal for 6 months. You can apply for a repayment grace period at any point of the loan period.
Refinancing
Nordea Bank now provides the option of refinancing your existing housing loan taken from another bank. The sooner you make the refinancing decision, the longer you can service your housing loan in a favourable price climate. Refinancing is reasonable if you have more than a few years left maturity of the loan period.
Additional benefits for the loan applicant
- Silver customer status and all related benefits
- Gold customer status and all related benefits
Documents required for applying a housing loan
- Passport or ID-card of the applicant(s).
- Bank account statement of the applicant and co-applicant for the previous 6 months
- The evaluation of the object proposed as the loan security. If you buy an apartment in a new apartment building, the submission of the sales agreement will be sufficient.
- Loan application
- The bank can ask additional documents and information necessary for processing the loan application
Expenses for a loan applicant
- real estate appraisal
- contract fee
- charge for the extract from a register
- notary and state taxes
- insurance
- KredEx fees, if necessary
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