With KredEx guarantee, we offer a loan worth 90% of the value of the collateral. If there is an additional security, then self-financing can be as low as 0%.

General information

Young family

The young family loan is meant for a parent or parents raising at least one up to 15-year-old (included) child. Guardians are also considered parents. The bank issues the loan in cooperation with foundation KredEx.

When a child is born, it is possible to apply for a period of grace up to 24 months, and during this period, only interest payments are paid.

Young specialist

The loan is meant for up to 35-year-old (included) young specialists*. Estonian citizenship or permanent residence and a valid employment, service or member the board agreement with concluded probationary period are required. Self-employed persons must have been in business for at least 1 years. We issue the loan in cooperation with foundation KredEx.

* Young specialist is a person, who has acquired higher education, secondary specialised education or vocational secondary education (based on basic education or secondary education) acquired or based on vocational basic education or vocational secondary education, aged up to 35 (included):

A veteran of the Defence Forces or Defence League

Veterans are tour soldiers and soldiers injured in active duty – both those in the Defence Forces and in the Defence League. Veterans are those members of the Defence Forces and Defence League, who have been injured in active duty or military training.

Acquirer of energy-efficient home

The customer buys an energy efficient home or renovates a dwelling to make it energy efficient.
Requirements for energy efficient homes:

Loan term

Home loan maximum term is 30 years. A longer loan period means lower monthly payments. The loan must be repaid by the loan recipient`s 70th birthday.

It is possible to apply for a period of grace for the home loan up to 6 months. During the period of grace, only interest payments must be made.

Loan repayment

Loan repayment takes place on a monthly basis, when the bank debits all payments to be paid to the bank on the basis of the loan agreement from the loan recipient`s bank account without additional order.
It is possible to choose between an annuity schedule and schedule with equal principles.

  • In case of an annuity schedule, the loan payment amount is the same each month. In the initial loan period, it is primarily made up of interest but with each monthly payment, the share of the principal increases. Interest is calculated on the loan balance.
  • In case of a payment schedule with fixed principles, the loan principle has been divided into equal parts and interest is added. As interest is calculated on the loan balance, so the payment burden decreases with each month.
Therefore, the particularity of the annuity schedule is equal payments and a bigger total interest sum for the loan period. The payment schedule with fixed principles means higher payment burden at the beginning of the period, consistently decreasing monthly payments and lower total interest sum for the loan period.
 We recommend using the home loan calculator and maximum loan sum calculator for model calculations.

Interest rate

Interest is made up of base interest and the customer`s personal margin.

  • 6-month Euribor* (European Interbank Offered Rate).
  • The customer`s personal margin depends on financial indicators and other circumstances related to the specific customer`s.
The loan interest rate may change according to the agreement! In case of a potential increase in the loan interest rate, the monthly loan payments increase and due to that, the loan payments may become bigger.  
* Unfixed base interest rate EURIBOR (Euro Interbank Offered Rate) is the euro reference rate quoted for deposits of the corresponding period on the European interbank financial market, administered by the European Banking Federation and Financial Markets Association. Information about base interest rates is published on the bank`s webpage; you can also get information from bank offices and from the bank`s information line +372 628 3300.


  • Home loan main guarantee is an object to be bought, built or renovated or other real estate (plot of land, apartment, etc), which can be encumbered with real security i.e. mortgage.
  • Self-financing can also be replaced with an additional guarantee.

Kredex suretyship

  • In case of KredEx suretyship minimum self-financing of 10% is required.
  • KredEx suretyship may be up to 24% of the value of the guarantee, but no more than 20 000 euros. At one time, only one loan with KredEx suretyship can be used.
  • Self-financing can be replaced with an additional guarantee.
  • The guarantee cannot be encumbered with other real right law or law of obligations (mortgage, personal right of use, servitude, right of superficies, rent agreement etc), except for real right or law of obligations` encumbrances arising from law.

Guarantee valuation and insurance

For valuation of the guarantee, use bank accepted real estate offices. Also, the object serving as loan guarantee must be insured for the entire loan period.

In insuring assets mortgaged in own favour in Estonia, we accept all non-life insurance companies registered in Estonia and licensed by the Financial Supervision Authority with the company`s name published on the Financial Supervision Authority`s homepage.

Insurance requirements

  • According to the loan agreement, the real estate guarantee must be insured for the duration of the loan period at least to the extent of restoration value of the object.
  • At minimum, the insurance must cover fire, flooding and natural disaster risk and vandalism damage. The maximum allowed deductible rate is 500 euros.
  • Luminor Bank AS (reg No 11315936) must be noted as the beneficiary in the insurance policy.
  • The loan recipient must submit the certificate verifying conclusion of a new insurance policy or extension of insurance policy to the Bank three days before the previous insurance policy ends at the latest. Please send the new insurance policy to the e-mail address kindlustused@luminor.ee or postal address Liivalaia 45, 10145 Tallinn.

In insuring assets mortgaged in own favour in Estonia, we accept all non-life insurance companies registered in Estonia and licensed by the Financial Supervision Authority with the company`s name published on the Financial Supervision Authority`s homepage.  

Premature loan repayment

You must fill in an application for premature loan repayment.

Premature loan repayment comes with the premature repayment fee on the prematurely repaid loan sum calculated in the amount of 3 next months` interest.

If the loan recipient gives at least 3 months` notice of premature repayment, then the premature repayment fee is not applied.

Dependent on loan agreement terms and conditions, in addition to the, interest as at payment date and/ or the cost of prematurely terminating the derivative related to setting limits on base interest rate must be paid to the bank; in case of debs, also these with accrued interest.

Costs related to loan formalities

  • Real estate appraisal
  • Contractual fee
  • Notary`s fee and state fee
  • Non-life insurance
  • KredEx guarantee fee 3% on guarantee sum (paid during conclusion of agreement as a one-off payment)