Generally, we offer loans up to 80% of the market value of the home to be purchased. Under certain conditions – for example, with KredEx guarantee or additional security, also 90–100%.

General information

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.

For example: If you take a home loan in the sum of 30 000 euros, then the total with unfixed loan interest is 3.0% a year, with loan period 360 months, the number of monthly repayments is 360 and 126.48 euros and in case of schedule with equal principles, it is 158.33 euros.
If the unfixed base interest rate were to rise to 6 % a year for example, then your monthly loan payments would also increase and instead of the above, the monthly repayment sum with annuity schedule would be 241,39 euros and in case of schedule with equal principles, 308.33 euros.

We recommend using the home loan calculator and maximum loan amount calculator for model calculations.


  • The required self-financing is at least 20% of the market price of the home to be bought, built or renovated.
  • Self-financing may decrease to 10% if the terms of loans issued with Kredex guarantee can be applied to the loan applicant(s).
  • In case of additional security, self-financing may be 0%.

Interest rate

IInterest 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 security.
  • The Bank also accepts suretyship provided by a private person and Foundation KredEx provided suretyship as additional guarantee.
    In providing suretyship as loan guarantee, make sure to read the surety provider`s reminder.

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 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)

Loan recipient`s reminder

Make sure to ask any questions you have regarding the loan offer, terms and conditions, or the content of the loan agreement. The loan applicant must know and consider the possible risks involved before entering into an agreement. Loan recipient`s reminder provides a more detailed overview of the potential risks involved with taking a loan.

Sample offer of a housing loan

Floating interest rate
per year
Agreement fee Repayments Total amount
of repayments
€64,000 30 years 2.50 % 
+ 6 months Euribor
€640 360 €90,886 €91,526 2.57 %